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DFW homeowners beware: In skyrocketing market, property tax appraisals are going out

In the North Texas area, Collin County homeowners paid the largest in property taxes in 2021 at $7,107.

DALLAS — With property appraisal notices soon arriving to many households across North Texas, many will need to expect an increase that correlates with the also rising home values across the state and country.

And home values are rising rapidly in North Texas, up 23.55% year-over-year, according to data from the Texas A&M Real Estate Research Center's annual data.

The result, to no one's surprise, is likely going to be an increase in appraisal values, and, in turn, higher property taxes.

“The Texas real estate market is growing as fast as we have ever seen it in the state’s history," said Alvin Lankford, president of the Texas Association of Appraisal Districts, which issued guidance in March to member appraisal districts. "We have all seen the countless stories about people moving to Texas from other states. This increase in population contributes to a shortage of homes available and to the increase in prices paid for homes.”

There was $328 billion in property taxes sent to single-family homes in 2021, according to recent information released by ATTOM, a curator of real estate data.

That mark was up 1.6% from $323 billion in 2020.

The average tax on single-family homes in the U.S. in 2021 increased 1.8% from $3,719 in 2020 to $3,785 in 2021, according to ATTOM data.

Specifically, in the North Texas area, Collin County homeowners paid the largest in property taxes in 2021 at $7,107.

While the North Texas property taxes are below what homeowners in other markets paid in 2021, homeowners in the area can expect higher taxes in 2022 since these rates are lagging compared to homes' values. 

The property tax statistics mentioned below are based on recent data from Attom Data Solutions

The average home price information was collected from the Texas A&M University Texas Real Estate Research Center.

Here's a look at how much home values increased last year:

Dallas County

In Dallas County, the average effective property tax for residents with single-family houses in 2021 was $6,033. This comes out to 1.36% for these homeowners.

In terms of the change in the county's average home price from 2020 to 2021, Dallas County saw a 16% increase, going from $388,058 in 2020 to $450,072 in 2021.

Tarrant County

In Tarrant County, the average effective property tax for residents with single-family houses in 2021 was $5,438. This comes out to 1.48% for these homeowners.

In terms of the change in the county's average home price from 2020 to 2021, Tarrant County saw a 20% increase, going from $309,275 in 2020 to $369,772 in 2021.

RELATED: 'Growing pains': North Texas residents seeing higher property tax bills

Collin County

In Collin County, the average effective property tax for residents with single-family houses in 2021 was $7,107. This comes out to 1.29% for these homeowners.

In terms of the change in the county's average home price from 2020 to 2021, Collin County saw a 23% increase, going from $401,476 in 2020 to $493,486 in 2021.

Denton County

In Denton County, the average effective property tax for residents with single-family houses in 2021 was $6,731. This comes out to 1.42% for these homeowners.

In terms of the change in the county's average home price from 2020 to 2021, Denton County saw a 23% increase, the same mark as Collin County. Denton County's average price went from $379,511 in 2020 to $465,909 in 2021.

To see what your county's 2021 property taxes look like, you can click here.