Buying in Bee Cave and trying to make sense of property taxes? You are not alone. Understanding how taxes are calculated, when bills arrive, and how escrow affects your monthly payment can help you budget with confidence. In this guide, you will learn the key steps to estimate your tax bill, the role of exemptions, and what to expect at closing and after you buy. Let’s dive in.
Bee Cave property tax basics
Property taxes in Bee Cave follow Texas rules. The Travis Central Appraisal District, known as TCAD, sets your property’s appraised value each year using the property’s condition on January 1. Local taxing units, like the City of Bee Cave, Travis County, and the school district, set their tax rates each year.
Your annual bill is the taxable value after exemptions multiplied by the combined tax rate. Travis County Tax Office sends and collects the bills. If you disagree with your appraised value, you can file a protest through TCAD within their published deadlines.
What determines your bill
Appraised value set by TCAD
TCAD estimates market value using sales data, condition, and improvements as of January 1. A recent sale price and comparable sales nearby can influence the next year’s appraised value. New construction or major upgrades usually raise the value in the next appraisal cycle.
Exemptions reduce taxable value
Exemptions lower the portion of value that is taxed. Common options include the general residence homestead exemption, age 65 and older or disability benefits, and disabled veteran exemptions. You must apply with TCAD for most exemptions. Amounts and eligibility vary by taxing unit.
Rates from each taxing unit
Your total rate is the sum of all entities that tax your property. In Bee Cave, that often includes the school district, Travis County, the City of Bee Cave, and any special districts such as utility or emergency services districts. School district taxes typically make up the largest share. Special districts can vary by subdivision and may be significant.
Timing and lag
Appraisals are based on January 1. If you buy later in the year, any change due to your purchase price usually shows up in the next year’s value. Appeals decided before the final tax roll can adjust that year’s taxable value.
Estimate your Bee Cave taxes
Step-by-step method
Use this simple process to estimate your annual bill and monthly escrow:
- Find the most recent TCAD appraised value for the property.
- Note current exemptions and any you plan to claim. Subtract the exemption amounts to get your taxable value.
- Identify all taxing entities for the property and add up the most recent rates to get a combined tax rate.
- Calculate annual taxes: taxable value × combined rate.
- Divide by 12 to estimate the monthly amount for your escrow.
Tip: Update your estimate each year. Values and rates can change.
Example calculation (illustrative only)
- Appraised value: 500,000 dollars
- Exemptions: 25,000 dollars
- Taxable value: 475,000 dollars
- Combined rate: 2.2 percent
- Estimated annual tax: 475,000 × 0.022 = 10,450 dollars
- Estimated monthly escrow: 10,450 ÷ 12 ≈ 871 dollars
Replace these numbers with your property’s actual TCAD value, exemptions, and current combined rate.
Escrow and your monthly payment
How escrow works
Many lenders require an escrow account for taxes and insurance. Your lender estimates the annual bill, then collects one-twelfth each month as part of your mortgage payment. Funds are held and paid to the Travis County Tax Office when due.
Annual escrow analysis
Lenders review escrow accounts each year. If your taxes rise, your monthly escrow may increase or you may see a one-time shortage payment. If taxes fall, you could receive a surplus refund or a lower monthly escrow.
At closing and the first year
Proration at closing
Taxes are usually prorated between buyer and seller at closing. The seller pays for the time they owned the home, and you cover the remainder of the year. The exact method is listed in your purchase contract and closing statement.
After you buy: reassessment and protests
Your sale price is a key data point for TCAD, so next year’s appraised value may change. New improvements are typically added to your appraisal when complete. If you think your value is too high, you can request an informal review and, if needed, a hearing with the Appraisal Review Board within TCAD deadlines.
Bee Cave buyer checklist
- Pull the TCAD record for current appraised value, exemptions, and taxing entities.
- Confirm the school district listed for the address. Much of Bee Cave is served by Lake Travis ISD, but always verify for the property.
- Ask the seller or listing agent for the most recent tax bill and whether taxes were escrowed.
- Check for special districts such as MUDs or emergency services districts that may add to the tax rate.
- Estimate your annual tax using your taxable value and the combined current rate, then divide by 12 for monthly planning.
- If you qualify for exemptions like the residence homestead or age 65 and older, apply with TCAD soon after closing.
- Discuss escrow with your lender, including initial reserves and how annual adjustments are handled.
Common pitfalls to avoid
- Ignoring special district taxes that vary by subdivision.
- Assuming the prior owner’s homestead exemption will transfer automatically.
- Using last year’s rates without checking for changes.
- Forgetting that a recent sale price or new improvements may raise next year’s appraised value.
Where to verify numbers
- Travis Central Appraisal District for values, exemptions, and protests.
- Travis County Tax Office for bills, due dates, and payment options.
- City of Bee Cave for the city tax rate and budget notices.
- The school district listed for your address, often Lake Travis ISD, for school tax details.
- Texas Comptroller for statewide property tax and exemption guidance.
- Your lender and title company for escrow planning and the tax proration method at closing.
Buying in Bee Cave should feel exciting, not confusing. If you want help estimating your specific tax picture, understanding exemptions, or planning your escrow, reach out to a local advisor who lives this process every day. Connect with Lizeth Rojas for clear guidance and bilingual support tailored to your Bee Cave move.
FAQs
How are Bee Cave property taxes calculated?
- Your annual tax is your taxable value after exemptions multiplied by the combined rates set by the school district, county, city, and any special districts.
Who sends the bill and when are Bee Cave taxes due?
- The Travis County Tax Office mails and collects property tax bills according to state timelines; check their posted deadlines for the current year.
Which exemptions can reduce my Bee Cave taxes?
- Common options include the residence homestead exemption, age 65 and older or disability benefits, and disabled veteran exemptions; apply through TCAD.
How do property taxes affect my monthly mortgage payment?
- If you escrow, your lender divides the estimated annual tax by 12 and adds it to your monthly payment, then performs an annual escrow analysis to adjust if needed.
How are property taxes handled at closing in Bee Cave?
- Taxes are typically prorated between buyer and seller based on days of ownership, with the method documented in your contract and closing statement.
Will my taxes go up after I buy a home in Bee Cave?
- They can, since TCAD may consider your sale price and any new improvements for the next January 1 valuation; you can protest within TCAD deadlines if you disagree.
