Guide to San Antonio’s Real Estate Taxes

If you're buying property in San Antonio, it’s essential to understand how real estate taxes work. Property taxes can significantly impact your monthly payments and overall budget. This guide will walk you through everything you need to know about San Antonio’s real estate taxes, including tax rates, exemptions, and payment schedules.

1. Overview of San Antonio Property Taxes

San Antonio property taxes are assessed and collected by Bexar County. Texas does not have a state income tax, so local governments rely heavily on property taxes to fund public services like schools, infrastructure, police, and fire departments.

• Taxing Entities: In San Antonio, your property tax bill may include assessments from multiple taxing entities, such as:

  • Bexar County
  • City of San Antonio
  • Independent School District (ISD) (e.g., Northside ISD, San Antonio ISD)
  • Hospital Districts and Community Colleges

• Current Tax Rates:
  The total tax rate in San Antonio typically ranges between 2% and 2.8% of the assessed property value, depending on the location and school district. These rates vary slightly across neighborhoods based on the specific combination of taxing entities.

2. How Property Taxes Are Calculated

Property taxes in San Antonio are based on the assessed value of your property, not the purchase price. The Bexar County Appraisal District (BCAD) determines the value of your home annually.

• Formula for Property Taxes:
  Assessed Value × Tax Rate = Annual Property Tax
  Example:

  • Assessed value: $250,000
  • Tax rate: 2.5%
  • $250,000 × 0.025 = $6,250 annual property tax

• Annual Assessment:
  BCAD appraises properties every year. If home values increase, your taxes may also rise, even if the tax rate stays the same.

3. Property Tax Exemptions for Homeowners

Texas offers several property tax exemptions that can help reduce your taxable value, lowering your overall tax burden. Here are the most common exemptions available to homeowners in San Antonio:

• Homestead Exemption:
  Available to homeowners who use the property as their primary residence. The homestead exemption reduces the taxable value of your home, typically by $40,000 for school district taxes.

  • How to Apply: Submit an application to BCAD by April 30 of the year after you purchase your home.

• Over-65 Exemption:
  Homeowners aged 65 and older qualify for additional exemptions, which freeze school district taxes and may reduce the amount owed to other taxing entities.

• Disabled Veteran Exemption:
  Veterans with a disability rating from the VA are eligible for partial or full property tax exemptions.

  • 100% Disabled Veterans: Completely exempt from property taxes.

• Other Exemptions:

  • Surviving Spouse Exemption for the spouse of a deceased veteran.
  • Disability Exemption for non-veterans with qualifying disabilities.

4. When and How to Pay Property Taxes

San Antonio property taxes are billed annually, with payment due to the Bexar County Tax Assessor-Collector.

• Tax Year and Deadlines:

  • October: Property tax bills are sent out.
  • January 31: Taxes must be paid in full to avoid penalties and interest.

• Payment Options:

  • In full by January 31: Avoid penalties and interest.
  • Installment Plan: Available to homeowners over 65, disabled individuals, and veterans. Payments are divided into four installments over the course of the year.
  • Escrow Account: If you have a mortgage, your lender may collect property taxes as part of your monthly mortgage payment and pay them on your behalf.

• Where to Pay:

  • Online: Bexar County offers online payment options.
  • In-Person: Pay at the Bexar County Tax Office.
  • Mail: Payment instructions are included with your tax bill.

5. What to Do if Your Property Taxes Increase

If you believe your property’s assessed value is too high, you have the option to protest your appraisal through the Bexar Appraisal Review Board (ARB).

How to Protest:

• Deadline: File your protest by May 15 or 30 days after receiving your appraisal notice (whichever is later).
• Process: Submit a protest form through the BCAD website or in person.
• Hearing: You’ll attend a hearing with the ARB to present evidence, such as recent home sales in your area, that support a lower assessed value.

Protesting your appraisal can potentially save you hundreds or thousands of dollars in property taxes if the value is adjusted.

6. Tax Implications of Buying or Selling a Home

When buying or selling a home, property taxes are typically prorated between the buyer and seller at closing.

• Seller's Responsibility: The seller is responsible for property taxes up until the day of closing.
• Buyer's Responsibility: The buyer assumes responsibility for taxes from the closing date through the end of the tax year.

Important: Make sure your escrow account (if applicable) is correctly set up with your lender after closing to avoid missing tax payments.

7. Tax Impact on Different Neighborhoods in San Antonio

Property taxes can vary based on the neighborhood and school district. Here’s an overview of how taxes might differ across San Antonio:

• Alamo Heights and Olmos Park: Higher tax rates due to highly rated school districts and city services.
• Stone Oak and Cibolo Canyons: Property taxes tend to be higher because of new developments and amenities.
• West Side and South Side: More affordable neighborhoods with relatively lower property tax rates.
• The Dominion: High-end gated communities with larger homes and corresponding property taxes.

8. Tips for Managing Property Taxes

• Set Up an Escrow Account: If your mortgage lender offers an escrow account, take advantage of it to spread property tax payments over the year.
• Apply for Exemptions Early: Ensure you submit your homestead or other exemption applications on time to maximize savings.
• Monitor Market Trends: Keep an eye on local real estate trends to anticipate changes in your home’s assessed value.
• Protest Appraisals: Don’t hesitate to protest if you believe your home’s value has been over-assessed.

Conclusion

Understanding San Antonio’s real estate taxes is crucial for managing your budget and making informed home-buying decisions. By taking advantage of available exemptions and staying on top of payment deadlines, you can minimize your tax burden. It’s also important to stay proactive about monitoring your property’s assessed value and protesting appraisals if needed.

If you’re considering buying or selling a home in San Antonio, contact Brad Burnes, a local Realtor who can help you navigate the city’s real estate market and provide guidance on managing property taxes. Reach out today to get started!