Ad Valorem Tax
A property tax based on the appraised value of real estate, set as of January 1 and paid in arrears in Texas.
Ad valorem means according to value. An ad valorem tax is a property tax based on the appraised value of the real estate, determined by the county appraisal district as of January 1 each year. Texas has no state income tax, so local property taxes are a primary source of local funding.
In Texas these taxes are paid in arrears, and the bill is figured by dividing the taxable value by 100 and multiplying by the combined rate per 100. Each taxing unit, such as the county, school district, and city, sets its own rate.
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- Property Tax Rate (per $100)
The Texas property tax rate, expressed as dollars per $100 of taxable appraised value rather than in mills.
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A Texas property tax break that lowers the taxable value of an owner's primary residence, reducing the school and other taxes owed.
- Special Assessment
A charge levied only on the properties that benefit from a specific public improvement, based on benefit rather than value.
This definition is Texas real estate exam-prep education, not legal, tax, or professional advice. Verify current rules against the official source before relying on them for a real transaction. Back to the full glossary.