Tax Rate FAQs

What is the property tax rate for the city?


The city's property tax rate is 61 cents per $100 of property valuation. The tax rate consists to two components. The first is the maintenance and operations (M&O) component, which helps funds the day to day operations of the city.  The M&O tax rate is 34.8083 cents per $100 of valuation.  The second component is the Interest and Sinking (I&S) rate, which is used to pay principal and interest on debt issued by the City.  The I&S tax rate is 26.1917 cents per $100 of valuation.  These two rates, when combined, equal the city's total tax rate of 61 cents.

Who authorizes the tax rate?

 
The City Council sets the property tax rate each year. The annual city budget and tax rate are proposed each August and adopted in September, following required public notices and public hearings. The city's fiscal year begins October 1. The city's preliminary budget calendar for 2017 includes a City Council Budget Work Session on August 4, 2017 with public hearings on the budget and tax rate scheduled for August 28 and September 11, 2017. The City Council is scheduled to adopt the budget and set the tax rate on September 25, 2017.

How does the city spend property tax revenue?


As mentioned above, there are two components to the tax rate: maintenance and operations (M&O), which helps fund the day to day operations of the city, and interest and sinking (I&S), which goes to debt service. M&O taxes go into the General Fund are the largest source of revenue in the city's General Fund at 34%. Operations funded by the General Fund include Police, Fire, Emergency Management, Public Works (streets, traffic control), Development Services, Library, Neighborhood Services (Animal Services, Code Compliance, Consumer Health, Environmental Resources), some of the Parks and Recreation operations along with other support departments (Budget, Finance, Human Resources, etc.).  In each of these areas, property tax is used to fund services, supplies, maintenance, equipment, and employee salaries and benefits. The graphs below show where revenue to the General Fund comes from along with how expenditures are allocated between service areas. 
General Fund Revenues and Expenditures

What is the average city tax bill?


In 2016, the average NRH homeowner paid $925 in property taxes to the city. That's around $77 per month, which is less than a typical cell phone bill, cable television bill or family dinner at a nice restaurant.  

How long has the current tax rate been in effect? 

 
The city's property tax rate has been 61 cents since 2012.  In 2012, North Richland Hills voters approved a bond election for the construction of the new City Hall.  This increased the tax rate from 57 cents to 61 cents, with the additional 4 cents being used to pay the principal and interest on debt issued for the new City Hall.

Why does my property value increase every year? 


Property values are set by the Tarrant Appraisal District (TAD) and may decrease, increase or remain the same from year to year. Property values are based on a number of factors including current housing market conditions. Overall, existing property values (shown in yellow on the chart below) decreased from 2009 to 2011 and it was not until 2014 that they returned to pre-recession levels. There was essentially no increase in existing home values in 2015. While overall taxable values increased in 2016, they are still below the market value - what homes are actually selling for. Per state law, TAD cannot increase the taxable value of a home by more than 10% per year. Tax bills for senior and disabled residents are frozen and will not increase unless they have purchased a new home, or made additions to their home. 
   TY 15 Adopted  TY 16 Prosed  Change in $  Change in %
General Fund (M&O)   14,930,540  15,634,073  703,533  4.7%
 Debt Service (I&S)  8,391,108  9,674,703  1,283,595  15.3%
 TIF Debt Service  1,681,117  1,969,993  288,876  17.2%
 Total  25,002,765  27,278,769  2,276,004  9.1%


   TY 15 Adopted  TY 16 Prosed  Change in $  Change in %
General Fund (M&O)   14,930,540  15,634,073  703,533  4.7%
 Debt Service (I&S)  8,391,108  9,674,703  1,283,595  15.3%
 TIF Debt Service  1,681,117  1,969,993  288,876  17.2%
 Total  25,002,765  27,278,769  2,276,004  9.1%


Change in Taxable Value

Why do some other nearby cities have a lower property tax rate?

 
Property tax rates vary by city, as do property values. Some cities may have lower tax rate, but a significantly higher average home value. Also, they may offer no homestead exemption or a lower homestead exemption.  Some cities such as Grapevine have much higher sales tax and hotel/motel tax revenue that help fund city services, enabling the city to maintain a lower property tax rate. 

What would be the result if NRH's property tax rate were reduced?

 
Due to the City’s obligation to make principle and interest payments on debt issued by the City, any change to the tax rate would directly impact funding available for the many services provided by the City.  A 1-cent change in the tax rate would reduce the funding for General Fund operations by roughly $363,838.  The greater the reduction in available funding, the greater the impact to the quality and quantity of the services offered to the citizens of North Richland Hills.


  • Reducing the property tax rate by 1 penny to $0.60 would mean $363,838 in less revenue for city services. 
  • Reducing the property tax rate by 2 cents to $0.59 would mean $727,676 in less revenue for city services
  • Reducing the property tax rate by 3 cents to $0.58 would mean $1,091,514 in less revenue for city services.
  • Reducing the property tax rate by 4 cents to $0.57 would mean $1,455,352 in less revenue for city services. 
It is important to note the impact of a change in the tax rate to the owner of a home of average value in North Richland Hills. The owner of a home of average taxable value ($151,000) pays about $925 a year in City taxes, that’s about $77 per month. For every penny the City property tax rate is reduced the average homeowner would save about $15 per year. 

  • Reducing the property tax rate by 1 penny to $0.60 would mean a $15 annual savings to the average NRH homeowner. 
  • Reducing the property tax rate by 2 cents to $0.59 would mean a $30 annual savings to the average NRH homeowner.
  • Reducing the property tax rate by 3 cents to $0.58 would mean a $45 annual savings to the average NRH homeowner.
  • Reducing the property tax rate by 4 cents to $0.57 would mean a $60 annual savings to the average NRH homeowner.

How are the homestead and senior exemptions applied/calculated? 

North Richland Hills resident can receive a 15% homestead exemption, plus a $36,000 exemption if they are a senior citizen (65 and older) or disabled. 

We will use a home valued at $199,954 as an example, which is the average Market Value of a single family home in North Richland Hills in 2016. The homestead exemption (15% of the Market Value) on this property equals $29,993.10.  This is subtracted from the Market Value, making the property's Taxable Value $169,960.90.

When the homeowner turns 65, they can fill out an application through the Tarrant Appraisal District and receive the senior exemption. This is not in lieu of the 15%, but rather an addition.  If a home with the average Market Value of $199,954 has both the 15% Homestead and the $36,000 Senior Exemption on the property, the owner would receive total exemptions of $65.993.10 ($29,993.10 + $36,000). This reduces the property's Taxable Value to $133,960.90.
 
The $0.61 per $100 tax rate is applied to the Taxable Value of the property. In this example, the resident would pay $1,036.76 in city property tax if they have the homestead exemption or $817.16 in city property taxes if they have both the homestead and senior exemption. 

To verify if you have the homestead and / or senior exemption in place, contact the Tarrant Appraisal District at 817-284-0024.


How is the senior / disabled tax freeze applied? 


The senior / disabled tax freeze (also known as a tax ceiling) ensures that a senior or disabled person will not have a city tax bill any higher than what was paid in city taxes in the year the homeowner turns 65 or becomes disabled, even if there are increases to their property value or the tax rate. 

The amount a senior or disabled homeowner pays in city taxes can decrease if the value of the property decreases or the tax rate is decreased and would result in a lower amount to be paid in taxes than the frozen amount.  However, if in subsequent years the value increases and/or the tax rate increases, the homeowner can pay more in property taxes but not more than the amount previously frozen. The cap does not reset.  

If improvements are made to the home (such as an addition, not general maintenance type improvements), then the tax bill can go up by the amount of taxes related to the improvement.  This amount added to the previously frozen amount would then become the new ceiling on the amount of taxes a homeowner would pay.

If a homeowner benefits from the freeze, sells their home and buys a new home of higher value, the freeze will apply to the new home at the same proportion as the freeze applied to the home they sold.

The tax freeze may be passed on to a surviving spouse if the surviving spouse is 55 years of age or older at the time of the eligible homeowner’s death and continues to reside in the residence.

In 2016, a senior / disabled tax freeze was in place for 24% of homeowners in North Richland Hills. This number continues to grow each year. To verify that you have the senior / disabled tax freeze in place, contact the Tarrant Appraisal District at 817-284-0024.