Texas Property Taxes

No state income tax, but property taxes are some of the highest in the nation. Here's what to expect.

How Texas Property Taxes Work

Texas property taxes are levied by local taxing authorities — county, city, school district, and special districts. There is no state property tax. Your total rate is the sum of all applicable taxing jurisdictions.

Taxes are based on assessed value, set annually by the county appraisal district
You can protest your appraisal if you believe it's too high
Taxes are paid in arrears — January 31 deadline for prior year
Penalty and interest apply after January 31 (up to 12% penalty + 1% monthly interest)
Lenders typically escrow property taxes and pay on your behalf

Typical Rates by County

Rates vary significantly by county, city, and school district. These are ballpark effective rates — actual rates depend on your specific taxing jurisdictions.

Harris County (Houston): ~2.0%–2.3%
Dallas County: ~1.8%–2.2%
Travis County (Austin): ~1.7%–2.1%
Bexar County (San Antonio): ~1.9%–2.4%
Tarrant County (Fort Worth): ~1.9%–2.3%
Collin County (Plano/Frisco): ~1.6%–2.0%
Denton County: ~1.7%–2.1%
Fort Bend County: ~2.0%–2.5%

Key point: On a $350,000 home at 2.2%, you're looking at $7,700/year or ~$642/month in property taxes — a major part of your total housing payment.

Homestead Exemption

If the home is your primary residence, you can apply for a Homestead Exemption, which reduces your taxable assessed value and caps how much your value can increase each year.

Mandatory $100,000 school district exemption (increased by Texas Legislature in 2023)
Additional exemptions available for seniors (65+), disabled persons, and veterans
Caps annual assessed value increase at 10% for your homestead
Must apply with the county appraisal district — not automatic
Apply between January 1 and April 30 of the year following purchase

Key point: The homestead exemption is one of the most valuable tax benefits in Texas. File it the first year you own your home — don't miss the window.

Protesting Your Appraisal

Every year the county appraisal district sends a Notice of Appraised Value. If you believe it's too high, you have the right to protest. Many homeowners who protest successfully get reductions.

File a protest by May 15 (or 30 days after the notice is mailed, whichever is later)
You can protest informally or request a formal ARB (Appraisal Review Board) hearing
Provide comparable sales data (comps) that support a lower value
Third-party protest services exist and often work on contingency

How Taxes Affect Your Monthly Payment

Most lenders require taxes to be escrowed. Here's how taxes affect PITI (Principal, Interest, Taxes, Insurance):

$200,000 home at 2.2% tax rate = ~$367/month in taxes
$350,000 home at 2.2% tax rate = ~$642/month in taxes
$500,000 home at 2.2% tax rate = ~$917/month in taxes
$750,000 home at 2.0% tax rate = ~$1,250/month in taxes
Always request the current tax bill when making an offer — not the appraised value

Key point: The tax rate on a new home vs. a resale can be dramatically different. Ask for the current year's tax bill, not just the rate.

Helpful Links & Where to Apply

Official and third-party resources for research and applications — provided for your convenience, not as endorsements. Confirm current terms directly with each provider, and reach out to me anytime for a trusted referral.

Texas Comptroller — Property TaxStatewide rules, deadlines, and taxpayer rights Find Your County Appraisal DistrictLook up assessed value, tax rates & protest info Homestead & Other ExemptionsFile after you move in to lower your taxable value

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