Can you please explain how Property Taxes are determined in Katy TX?

Real Estate Agent with Berkshire Hathaway HomeServices Anderson Properties TX Real Est. 567774


Can you please explain how Property Taxes are determined in Katy TX?


 I get this question numerous times during any given year and Texas is probably different in how the taxes are calculated and probably more confusing than most other places. I just had this question come up with a potential Canadian client who was totally confused and rightfully so. One huge geographical area in the mailing address part of unincorporated Katy is Cinco Ranch.  There is no such thing as a tax rate in Cinco ranch. Cinco Ranch is made up of at least 35 different neighborhoods and each has its own “Tax Rate”.


Let me try to explain in words how these taxes are determined. If you get lost or have more questions read this completely and then call me.


The salient points of tax calculation are as follows:

A)   The basis to start with is the values establish by a Central Appraisal District or CAD. Most of the times when you purchase a home the CAD value for that home ill end up as the appraised value. The next year the CAD will reappraise your home and supposedly use comparable sales in our neighborhood. The CAD value is the value used for taxes and nothing else. I tell folks all the time you want a low CAD value and a high appraised value by your financial institution.

B)    The basic tax rates cover County Taxes, MUD Taxes (I will write a separate blog about MUD) and school district taxes. These rates are before exemptions one receives for Homestead, being a Senior citizen, or being disabled. The owner of the home on January 1 of any given year can obtain a Homestead exemption. If you buy the home during say 2012 then you cannot apply or receive a Homestead of any kind during 2012 but can apply for Homestead during 2013. All exemptions require an application.

Each of taxing entities will determine how much they will apply as an exemption by reducing the CAD value of your home. As a general rule MUD taxes normally do not have exemptions of any kind.

C)    The tax rates are as I said above for school taxes (in Katy it is Katy ISD), MUD taxes, drainage districts, flood control, emergency services.  Add up all their amounts which are stated in $ per $100 of value to get the tax rate.

D)   The calculation goes like this: CAD value of the home $150,000; Tax rate is 3.3 % ; Homestead ( next year) is about on average 10% reduction. Taxes are estimated at ( 150,000 /@100 X 3.3 = $4,950 minus the homestead of $495 ( 10 %) and the net will be $4,455.

new home Cinco Ranch Katy TX


 I completely agree this is a confusing system. Please do not hesitate to call me so we can discuss if you are unsure of what I just covered.


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© 2016 Bob Gilbert Real Estate


Accredited Luxury Home Specialist


Note: Katy TX is about 25 -30 miles due West of downtown Houston TX.


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  1. Dale Baker 05/16/2012 09:57 PM
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Joni Bailey
101 Main St. Realty - Huntsville, TX
Your Huntsville / Lake Livingston Area REALTOR®

This is excellent information for your Kathy, Texas community as well as those looking to move there! Great job!

May 14, 2012 03:00 AM #1
John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Bob -

You've provided an excellent explanation of property taxes in Katy Texas.  You are the go to Realtor® in and around Katy Texas!

May 14, 2012 03:24 AM #2
Robert Bob Gilbert
Berkshire Hathaway HomeServices Anderson Properties - Katy, TX
Your Katy TX ( West of Houston) Real Estate Expert

Joni and John,

Taxes can look like an overwhelmimg topic and many Realtors I know really can't explan how it all works. THanks for your comments.


May 14, 2012 07:28 AM #3
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Trying to calculate real estate taxes can be very complicated.  Many of us are thankful to have the actual tax figures available online for each property.

May 14, 2012 10:54 AM #4
Joshua Zargari
MJ Decorators Workshop LI staging and home decorating - Lynbrook, NY
MJ Decorators Workshop

Good evening Bob.

That is a great post that explains the property taxes in a clear way.

May 14, 2012 11:32 AM #5
Dale Baker
Baker Energy Audits and Commercial Properties Inspections - Claremont, NH
New Hampshire Relocation Real Estate Information

Howdy and evening Bob

Bob my friend, you sure have done a mighty fine job of explaining to folks about the Property Taxes in your area. This here outstanding blog post sure will help many folks, and show them, that they want to work with you as their Agent!

Have a good one
Dale in New Hampshire

May 14, 2012 12:08 PM #6
Al Raymondi
Ocean View Realty Group in Ormond By The Sea Florida - Ormond Beach, FL
Ormond By The Sea Florida - Home and Condo Sales

This is a common question Bob, you have given good explanation that should help most folks understand.

May 14, 2012 09:42 PM #7
Jim Frimmer
HomeSmart Realty West - San Diego, CA
Realtor & CDPE, Mission Valley specialist

Tax systems are created by governments. Ergo, no surprise that they are confusing. lol

May 21, 2012 09:29 AM #8
Baker Home Inspection and Commercial Properties Inspections
Baker Residential and Commercial Properties Inspections - Springfield, VT
Home and Commercial Properties Inspections Vermont

Howdy there Bob my friend, you sure post such outstanding Local Info and Real Estate blog posts for folks to enjoy visiting at your outstanding blog full of helpful info. Plus folks sure do always get to find mighty enjoyable reading when they visit. I know other folks sure must also enjoy stopping by to visit your mighty fine blog. Folks if you are needing help with Real Estate, then do take the time to talk with Bob and you’ll sure learn he is the one an only to work along side.

Mar 03, 2014 06:32 AM #9
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Robert Bob Gilbert

Your Katy TX ( West of Houston) Real Estate Expert
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