One of the benefits of living in Dripping Springs is the fact that it is in Texas and there is no state income tax. Most revenue is collected from sales and property taxes.
Paying Taxes in Dripping Springs, Texas
The current statewide sales tax rate in Texas is 6.25%. However, localities can levy additional taxes resulting in a higher rate in some areas. Dripping Springs currently holds a rate of 8.25%. Unprepared food, prescription drugs, and over-the-counter drugs are exempt. Texas also holds sales tax-free days each year on certain items like back-to-school clothing and supplies. There is usually a minimum purchase amount to qualify.
The state also levies property taxes, but they are collected by cities, counties, and school districts, and can only be used for local needs.
Property taxes are based on the appraised current market value of real estate and income-producing tangible personal property. Real estate appraisals are performed by county districts who then multiply the value by the local tax rate. The local rate is based on county and school district needs and budgets.
Property tax exemptions also are available. Though not truly “exemptions,” they reduce the appraised value of your real estate, saving you money on your tax bill. Examples include homestead exemptions and exemptions for seniors and those with disabilities, including veterans.