Despite passing a historic property tax cut last November, many Dallas homeowners were dismayed to see the valuation of their properties shoot up this year, leading to significant property tax increases.
Dallas homeowners see significant increases in property valuation leading to high taxesTexas law requires the chief appraiser of a jurisdiction to send out appraisal notices by “April 1, or as soon thereafter as practicable for a single-family residence; or by May 1, or as soon thereafter as practicable for any other property.”
Some homeowners east and west of Dallas saw property valuations increase by as much as 125%, according to reporting by Dallas Culture Map.
Property values can vary greatly by location, as the valuation is based not on the individual property but on the average home sales price in the neighborhood. While some areas may see a 100% or more year-over-year increase in value, other stretches might not, depending on how “desirable” the neighborhood is to homebuyers.
In recent years, an influx of homebuyers moving in from other areas has driven up demand for housing in the metroplex, thus increasing home prices and leading to higher home valuations.
Land value — separate from the value of the home on the property — constitutes a significant portion of the overall property value.
For example, one home in Winnetka Heights previously had a land value of $195,000, but the land portion of the property is now appraised at $262,500, CultureMap reported. A home in Lake Highlands with a previous land value of $285,000 now has an appraised land value of $350,000.
Gaston Avenue is one of the regions experiencing major spikes in valuations, as The Dallas Express reported. A home on the street was appraised at $752,480 in 2023 but is now worth $1,161,490. The land value of that property increased from $373,170 to $1,005,850, CultureMap reported. A vacant lot on that street sold for $500,000 last year, driving the land values of nearby properties up by nearly 100%.
Homeowners can protest property valuations as determined by the Dallas County Appraisal District but cannot dispute the value of the land itself. Owners of larger properties will inevitably pay more in property taxes this year.
Communities like West Dallas and Casa View have seen high “flipper” activity in recent years, causing home sale prices in those areas to increase. As a result, even homes in the neighborhood that remain unchanged may see as much as a 100% increase in their home’s valuation.
The metroplex is experiencing a boom in new single-family homes, such as the Legacy Hills development in Celina, along with major projects to renovate historic hotels downtown that are being converted to condo space. As more people seek a Dallas lifestyle, property values are sure to climb even further, ultimately pricing some families out of property they have owned for years. Mayor Eric Johnson, who disputed his own property valuation in 2023, encouraged all Dallasites to investigate options to lower the amount they pay in property taxes.
“Last year, the Dallas City Council reduced the city’s property tax rate to its lowest level in 15 years with the largest single-year rate cut in four decades,” Johnson wrote. “But there is still more work to do. Without meaningful property tax relief, Dallas residents may choose or be forced to forgo the opportunity to live and work in this great city.”
