The assessed value is a yearly estimate of the worth of your property. Property assessors appointed by the government determine the assessed value of each home within a given tax district.

Taxable value = assessed value - exemptions

Of course, the higher the assessed value of your property, the higher your property tax.

To find out your property's tax rate, contact your local tax assessor, or use Netronline's public records online directory to search by state, county, and ZIP code.

A tax rate is the percentage of a person's or corporation's income that is taxed. Taxing jurisdictions, such as cities, counties, and school districts, set their tax rates, which are expressed as a percentage of a property's value that a property owner must pay to the jurisdiction.

The consolidated assessed value of the properties in the area is used to calculate the tax rate. Tax rates are calculated independently for each jurisdiction. Once determined, the total tax rate – or mill rate – for an entire region is calculated by adding all of the levies together.

The mill rate is the amount of tax payable per dollar of a property's assessed value. A'mill' is the amount per $1,000 of the assessed value of the property used to calculate the amount of property tax. Mill rates are set by government entities based on the total value of properties within their jurisdiction to generate the necessary tax revenue to cover projected expenses in their annual budgets. Costs include infrastructure and services such as roads, schools, emergency services, public safety services, medical care, etc. 

Individual property mill rates are typically found on the property deed. Mill rates are frequently expressed mathematically with the symbol percent.

When a local government passes a budget, known revenues are deducted, leaving a deficit covered by property taxes. This figure is multiplied by 1,000 and divided by the total value of all properties within the jurisdiction. This value represents the mill rate. Government organizations set the mill rate every year because of changing real estate prices and the necessity to cover infrastructure and service provision expenditures. Different properties, such as residential, commercial, and industrial properties, have different mill rates.

calculating the property tax using the assessed value and property tax rate (mill rate)

Consider a home with a $200,000 market value. Let us assume that the tax-assessed value equals 20% of the market value in the area. This means that the property tax has a $40,000 basis. If the mill rate for the property is 70 mills, which means that for every $1,000 assessed value, $70 in property taxes are due, the property tax is calculated as follows: $40,000 x 7% = $2,800

The current year's tax rate is usually available on your county's website or by contacting a county or city official in the department of finance and taxation.a

The Texas Constitution establishes the following basic property tax rules: Taxation must be fair and consistent. No property or category of property should be required to pay more than its fair share. Property taxes are determined by the value of the property you own. If, for example, your property is valued half as much as your neighbor's (after any applicable exemptions), your tax bill should be one-half that of your neighbour. This means that consistent evaluation is critical.

1. Each county's appraisal district determines the value of taxable property each year. The chief appraiser is the appraisal district's chief administrator, and its operations are overseen by a board of directors.

2. Any differences between you and the appraisal district over the value of your property are resolved by an appraisal review board (ARB).

3. The county, cities, school districts, and special districts all decide how much money they will spend each year. As a result, the tax rate they must set and the overall amount of taxes you and your neighbours will pay are determined.

Beginning in 2020, the rollback tax rate (the point above which voters must approve tax increases) for cities, counties, and special districts will be reduced from 8% to 3.5 percent (excluding units with tax rates of 2.5 cents per $100 valuation or less, junior colleges, and hospital districts, which will remain at 8%.

While Texas has some of the highest property taxes in the country, the state's overall tax burden is average. Texas is one of only seven states that do not levy state income taxes. Furthermore, the sales tax is relatively low.Local governments require funding for public services such as schools, libraries, road maintenance, and emergency services, among other things.

If they do not receive funding from income or sales taxes, they must rely on property taxes to fund these programs. This raises the cost of property taxes above the national average.

In Texas, property tax reform would almost certainly imply redistributing the tax burden. This could take the form of instituting a state income tax or raising the sales tax.