Dallas has seen the highest five-year property tax increase of any major U.S. city, according to a new study.
The analysis by Today’s Homeowner found that in 2016, Dallas residents paid an average of $2,851 in property taxes.
By 2021, that figure grew 63.8%, with residents of Dallas now paying $4,671 in property taxes on average.
Property tax expenses have risen drastically in Dallas despite the City Council passing tax rate reductions every year since 2016, including what Mayor Eric Johnson described in a tweet last year as the “largest single-year tax-rate reduction in modern Dallas history.”
Mayor Johnson has a record of supporting property tax cuts, having previously said he believes in “across-the-board tax-rate reduction for all homeowners and renters,” per The Texan.
The Dallas Express reached out to Johnson’s office for comment on the findings of this study but received no response by press time.
Despite the stated priorities of City leaders like Johnson, the cuts enacted in recent years have not been substantial enough to counteract soaring home values across Dallas — as evidenced by the continually rising costs of property tax bills.
In January 2016, the average Dallas home cost $150,935, according to the Zillow Home Values Index.
Now, that value has risen to $308,305, marking a roughly 104% increase.
The property tax cuts passed by the City Council since 2016 amount to a mere 6.42% decrease — from $0.797 to $0.7458 per $100 valuation.
A March survey conducted on behalf of Mayor Johnson found that property tax reduction remains one of the highest priorities for over 70% of Dallas residents.
One factor contributing to higher property taxes in Dallas could be Texas’ lack of a state income tax, according to local CPA and founder of Alicorn Investment Management Bill Dendy.
“Having lived in Dallas County for most of my adult life, our property taxes, and taxes in general, are high, but we don’t have the state income tax, so you gotta pick things one way or another,” Dendy previously told The Dallas Express.
The Today’s Homeowner study also found that the state of Texas had the fifth-highest property tax increase out of all 50 states from 2016 to 2021.
Texans paid an average of $3,049 in property taxes in 2016, which then jumped to $4,601 by 2021 — a 32.6% increase.
Last week, the Texas House of Representatives passed a $12 billion property tax relief proposal that would lower the state’s “appraisal cap” on how much a home’s taxable value can increase in one year from 10% to 5%.
“We want to have the caps so that there’s predictability and stability for our property owners,” said Rep. Morgan Meyer (R-Dallas), per the Texas Tribune.
Total property tax collections across Texas increased over 12% last year alone, according to a study conducted by the Huffines Liberty Foundation.
Former Texas senator Don Huffines told The Dallas Express at that time that he believes “property taxes are immoral.”
However, others maintain that property taxes are essential for funding public services — especially education — as property taxes reportedly make up about half of the funds directed to public schools.
Texas A&M Research Economist Dr. Charles Gilliland said, “The only way to really institute meaningful property tax reductions would either be to find some other revenue source or to substantially cut education budgets,” per The Texas Tribune.
“Neither one of those options is palatable in today’s political atmosphere,” he added.
In the nearby city of Irving, homeowners have also seen drastic increases in property tax payments, according to Today’s Homeowner study.
In 2016, Irving residents paid an average of $2,985. In 2021, they paid an average of $4,671, marking a 61.5% rise.
The study analyzed housing data from 585 cities and all 50 states and found that across the nation, the average property tax bill rose 19% from 2016 to 2021 — from $2,340 to $2,795.
The Dallas Express reached out to Today’s Homeowner for additional information on the study and its results but received no response by press time.
Everyone living in Dallas is a renter.
“Property taxes are immoral,” states Don Huffines of the Huffines Liberty Foundation.
He is right.
Dallas citizens do not actually own their home…they rent it from Dallas.
2016 Home cost – $150,935 — 2023 cost $308,305
2016 – $2,851 in property taxes – 2023 $4,671
Why pay high “rent” for a much older home you “own” in Dallas, when you can move to the suburbs and upgrade to a new home, better schools and cheaper costs.
You’re so correct. While I technically own my own home, the property taxes I pay for subpar city services is unacceptable. I’m retired on a fixed income, so there is no way I could relocate if I wanted to.
I just moved here from Tennessee. Tennessee has no state income tax. My property tax in Texas is 2.5X what it was in Memphis. Anyone blaming this on no income tax is blind to reality. Property taxes in Dallas are extreme.
Property taxes are immoral. It is wealth confiscation pure and simple. Use the sales tax to raise revenue. That way EVERYONE pays not just property owners.
It’s never ridiculous spending thats the problem, just not enough taxes.
Right on the money, Bret!!! Why do the taxpayers never get an accounting of where our tax money goes?
It should become public knowledge what government employees are paid via a listing of the occupations. There should be an audit of ALL so we can see where the money goes. People will be incensed at what is found out, I guarantee it.
And Dallas wonders why people continue to leave for the nicer, newer, cleaner, safer, more prosperous northern suburbs. If you’re going to pay high property taxes, there are better places to live than the cesspool that is the City of Dallas.
Having lived in 9 different states, the best way we should go is to look at Washington state. Yes. Crazy it’s a blue state but it relies on a brilliant strategy of the “B & O” tax – it’s a tax on business REVENUES – not income which businesses can manipulate. Like 1%. Easy to calculate. WA has No Income tax and so an ~ $500K in Texas pays $11K or so in tax – somewhat lower valued house in WA only pays $5K. Neither state has an income tax (yes Seattle has one for income > $500K), yet we Texans pay a whopping 117% more on our property taxes!!! Why????? B & O tax is the way to go! No business is going to leave Texas or not come to Texas over a 1% tax on revenue.
Quit shafting MIDDLE CLASS people! Quit shafting all property owners!!
Texas is one of the reddest of the red states. Yet, property taxes for homeowners in Dallas are going up very fast. What is Gov Abbot and the Mayor going to do about this?
If our City Council representatives and in Austin cannot lower the extreme high taxes, then don’t elect them the next time they come up for re-election. As a matter of fact come May we have a chance to change our City Council by turning up and voting.