deep in the heart of taxes

Texans pay the 6th highest real estate property taxes in the U.S., new report finds

As newcomers know, Texans pay less taxes than five other states.

Photo by TK Images

It’s that time of year again where Texas homeowners grimace at their tax bills. But here’s some consolation – did you know the Lone Star State doesn’t have the highest property tax rate in the U.S.? Personal finance website WalletHub’s 2023 report says there are five states paying higher property taxes than Texas.

In the report, Hawaii comes in first place with the lowest property tax rate out of all 50 states and the District of Columbia – 0.29 percent. With a median home value of $662,100, that means the average Hawaiian is paying $1,893 in annual property taxes.

Toward the bottom of the list (meaning states with the highest property tax rates), Texas sits at No. 46. The median home value in Texas is $202,600 with a property tax rate of 1.74 percent, which means the average Texan pays $3,520 in property taxes.

States paying higher property taxes than Texas are Vermont at 1.90 percent, New Hampshire with 2.09 percent, Connecticut at 2.15 percent, and Illinois with a 2.23 percent tax rate. Coming in at No. 51 with the most expensive property tax rate on the list is New Jersey, sitting at 2.47 percent. At that rate, New Jersey homeowners pay $6,057 on a median home valued at $355,700.

Dr. Alex Combs, assistant professor in the Department of Public Administration and Policy at the University of Georgia, says people should consider how much they could pay in property taxes when making the decision to move.

"After all, people are sensitive to price, and the property tax is a visible cost of homeownership that funds generally desirable government services like education and public safety," he explains. "If they have the opportunity, people are going to seek the biggest benefit for their property tax buck."

The 10 states that pay the lowest real estate property taxes are:

No. 1: Hawaii – 0.29 percent
No. 2: Alabama – 0.41 percent
No. 3: Colorado – 0.51 percent
No. 4: Nevada – 0.55 percent
No. 5: South Carolina and Louisiana (Tied) – 0.56 percent
No. 7: District of Columbia – 0.57 percent
No. 8: Utah and Delaware (Tied) – 0.58 percent
No. 10: West Virginia – 0.59 percent

While Texas homeowners will feel the sting of their property taxes, at least they can find some comfort in not having to worry about vehicle property taxes. Texas vehicle owners do have to pay a 6.25 percent tax rate on the purchase price of a car with their local tax assessor-collector, but they do not have to pay annual vehicle property taxes.

Plus, it’s not just Texas – WalletHub determined 23 other states and Washington, D.C., also do not have vehicle property tax rates. Louisiana has the lowest rate out of the remaining states who do pay vehicle property taxes, at 0.10 percent. The state with the highest vehicle property tax rate is Virginia, at 3.96 percent.

The full report and its methodology can be found on WalletHub’s website.

Homeowners Property Taxes WalletHub property taxes in texas

Preserving Houston's history

Historic Houston theater secures $7 million loan to begin renovations

Garden Oaks theater renovation rendering

Courtesy of Arthouse Houston

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A historic Houston movie theater has secured the necessary funds to move forward with its renovation and redevelopment plans.

Community non-profit Arthouse Houston announced on Tuesday, November 10, that it had closed on a seller-financed loan to purchase the Garden Oaks Theater. Thanks to support from 900 donors, Arthouse closed on the $7.1 million property purchase today, putting $2 million down and saving the building from demolition.

“The wind is in our sails,” Arthouse Houston director Maureen McNamara said in a statement. “We expect this level of community support and energy to grow and spread as we enter into the restoration and renovation phase that is coming next. We will restore the original marquee and neon blade sign that was removed but saved. We will apply for national, state, and local historic designations, then seek protected landmark designation as soon as possible once the building loan is paid off.”

Saving the postwar Art Deco cinema on N. Shepherd Dr. has been Arthouse’s primary mission as of late, getting a lot of help from both local devotees and famous natives. Last summer, the organization held the Wes Anderson Homecoming Soiree, where the Houston-born, Oscar-winning auteur came back to Houston to shake some hands and support the endeavor. (Both he and fellow Oscar-winning hometown boy Richard Linklater have been avid supporters.) In September, Arthouse announced that it was only $400,000 short of a targeted $3.1 million goal to cover the down payment and carrying costs.

The true goal for the Garden Oaks is to transform it into an arts and film center, with year-round film and arts programming, film production, eateries, art, and educational resources. The theater will be able to host major film premieres, live performances, and festivals in its 700-plus seat main auditorium. According to McNamara, “Local groups such as Houston Association of Producers, Southwest Alternative Media Project, Performing Arts Houston, HCAS and many more have expressed interest in being part of the new arts center.”

Arthouse has now begun a capital campaign for the estimated $18-20 million project, seeking support from foundations, major private donors, and sponsorship partners. But they’ll also look for community donations for the Name-a-Seat campaign and preservation by-the-foot of the neon blade sign and marquee. Before the grand reopening, the theater hopes to operate a temporary drive-in theater in the large parking lot during renovations.

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