What is the difference between a property tax levy and a tax rate?

The difference between a property tax levy and a tax rate can be difficult to understand, but there are some important distinctions between the two concepts that are important to understand in Texas. A property tax levy is the amount of money that a taxing authority, such as a city, county, or school district, collects from property owners each year. The levy is calculated by taking the total value of all taxable property in the area and multiplying it by the tax rate. A tax rate, on the other hand, is the percentage of the property’s value that a property owner has to pay each year. For example, if the tax rate is set at 2%, then a property with a market value of $200,000 will be subject to an annual tax of $4,000. The tax rate in Texas is set by the state legislature and cannot be increased without their approval. Property tax levies, however, are determined by local taxing authorities and can be changed or adjusted each year to reflect the current needs of the community. In other words, a tax rate is a percentage and a property tax levy is the amount of money that is collected. The property tax rate is always the same, while the levy can be changed depending on the needs of the community.

Related FAQs

How are property taxes calculated?
How can I appeal my property taxes?
How do property tax exemptions work?
What are the local and state laws surrounding property taxes?
What is the difference between a property tax levy and a tax rate?
What happens if I don’t pay my property taxes on time?
What is a property tax deduction?
What happens if I don’t pay my property taxes in full?
How are property values determined?
What is the property tax cap?

What is the difference between a property tax levy and a tax rate?

Related FAQs

Related Blog Posts