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.
Quick flashcard
What does Ad Valorem Tax mean on the Texas real estate exam?
Answer: A property tax based on the appraised value of real estate, set as of January 1 and paid in arrears in Texas.
Read the explanation below, then return to the full flashcard deck and try it again from memory.
Ad Valorem Tax definition
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.
Source basis
Definition checked against the official sources below on .
On the exam
Exam trap
Tested in
Real Estate Math (7 of 80 National)
From definition to recall
See this term inside a real exam question.
Pass Texas gives you Texas-specific practice, diagnostics across the 14 exam areas, Trap Library, Math Coach, offline access, and one $59.99 purchase. No subscription. No copied exam questions.
Try 5 free questionsThis 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.