Many Texans are unaware that they qualify for exemptions or property tax credits or can protest the assessed value of their property to lower their property tax liability. Home to close to 700,000 people, the median property value in Montgomery County hovers around $315,000. As statutes and tax laws change, every property owner should know how Montgomery County property taxes work and how they can lower their bill.
Understanding Property Tax Assessments
It's first important to understand how property taxes are assessed. Every county in Texas with more than 10,000 people must have a Tax Assessor-Collector office. The Montgomery Central Appraisal District identifies taxable properties, determines their appraised value, applies eligible exemptions, finds the owner and address, and identifies which taxing jurisdictions (cities, school, utility districts, etc.) collect taxes from the property.
They then refer the property to the Montgomery County Tax Office to load the property tax values into the Tax Office Computer System. Current properties are levied in October each year, and mortgage companies or property owners receive a consolidated tax bill around that time.
Overview of Real Property
The type of property you're dealing with affects the taxes involved. Real property is land and anything attached to it, such as natural features and buildings. In Montgomery County, this includes buildings and structures like houses, barns, or commercial buildings. Real property does not include anything movable and unattached to the land, such as equipment, vehicles, or furniture.
Exploring Property Tax Rates and Levies
Taxing entities such as school districts, cities, counties, and special districts levy taxes. Each entity determines its tax rate, with school districts usually having the highest. These taxes fund schools, improved roads, libraries, and first responder services like the police department.
What is the property tax rate in Montgomery County, Texas?
In September 2024, county commissioners approved a change to property tax laws, moving the tax rate to $0.379 per $100 of assessed valuation. This is an 8.91% increase from the previous fiscal year's $0.3452, and it is the first raise in five years.
Commissioners claim this is the best way to avoid budget pitfalls. In reality, taxpayers foot the bill for things like technology upgrades, new constable deputies, and a cost-of-living increase within the county.
When tax bills come due and you receive your assessment notice, you can pay online with a debit or credit card (with a fee) or an e-check. The county offers a one-time payment, a quarter payment plan, and a pre-payment plan.
Understanding Your Property Tax Statement
Still wondering what the property tax rate is in Montgomery County, Texas? Make it a habit to review your property tax statement yearly because assessed values change.
Check to ensure the value is correct and not outdated. Compare it to equivalent properties in your area to ensure fair value. If you have questions about your tax statement, contact the county.
You can also use Ownwell to see how much you're overpaying in property taxes. We'll help you retroactively apply for missed exemptions and protest on your behalf.
Available Exemptions for Texas Homeowners
Montgomery County offers some exemptions for homeowners to decrease the taxable value of their residential property:
The general residential homestead exemption applies only if the home is your primary residence and can reduce your assessed value on your school district taxes by up to $100,000.
The disabled person exemption requires that you be 100% disabled, and every school district is required to offer a $10,000 exemption.
The over-65 homestead exemption can also reduce your assessed value by $10,000.
The 100% disabled veteran's homestead exemption is available for those who receive 100% disability compensation for a service-connected disability.
Surviving spouses of those in these situations can also apply for homestead exemption status in Texas as long as they meet the criteria.
Applying for Property Tax Exemptions
Determine what property tax exemptions you qualify for. Examples include the general homestead, over-65, disability, veterans, and surviving spouses exemptions. Obtain the correct forms from the Montgomery Central Appraisal District. For the homestead exemptions, use Form 50-114.
You can also use Ownwell to retroactively apply for missed exemptions for up to two years. We also offer homestead monitoring, which you must verify once every five years.
How To Protest Property Tax Assessments
Even with exemptions, if your tax bill seems too high, you should know how to protest property taxes in Montgomery County, Texas. First, file a notice of protest with the Montgomery Central Appraisal District. The county will schedule an informal hearing that you should prepare for.
You can attend the informal hearing via video conference or at the Appraisal District office. If you can't come to a settlement during the informal hearing, you'll then appeal to the Appraisal Review Board (ARB) via a formal hearing. If you still don't agree with the amount, you can appeal through binding arbitration or the district court.
If you own commercial property, see how much you can save with a professional property tax protest.
Important Deadlines for Property Tax Protests
If you plan to protest, you must file a notice of protest by May 15 or within 30 days of receiving your appraisal letter. If you miss the deadline, you lose the right to appeal your tax bill unless you are traveling due to work or on assignment for the military.
Gathering Necessary Documentation for Appeals
If you decide to file a property tax appeal, gather:
Comparable sales in your area
Evidence that your property has undergone damage that may decrease its value
Any other evidence that shows the county may be off in its assessment, including construction bids, repair costs, or proof of sales.
Protest With Ownwell To Ensure a Fair Assessment
Montgomery County property owners may reduce high property taxes by filing for exemptions and protesting assessments. This can be a confusing and arduous process. To get the best protest results possible, you should have a property tax professional on your side.
At Ownwell, you only pay if you save money. We understand the property tax process and are the best-in-class to our experience, knowledge from local tax experts, and proprietary software.
Sign up now to maximize your savings by lowering your property tax bill.
