Texas property tax rates vary by county and school district, not by state

Texas has no state income tax, but it does have property tax. The amount you pay depends entirely on where your property sits — which county, which school district, which city or town. There is no single Texas rate. A homeowner in one county might pay 0.6% of their home's value each year, while someone in another county pays 1.8% or more. The tax bill you receive comes from the combination of rates set by your county, your school district, your city (if you live in one), and any special districts that serve your property.

The appraisal district in your county determines what your home is worth. The tax assessor uses that value, multiplies it by the combined tax rate for all the taxing units that serve your address, and that is your bill. You do not negotiate the rate — it is set by elected officials in each taxing unit. But you can challenge the appraised value if you believe it is wrong.

Key Takeaways

  • Texas property tax rates range from roughly 0.4% to 2.0% of home value depending on county and school district, with no statewide cap.
  • Your bill combines rates from your county, school district, city, and any special districts — you will see all of them listed on your tax notice.
  • The appraisal district values your home each year, and that value is multiplied by the combined tax rate to calculate what you owe.
  • Homeowners over 65 and disabled homeowners may receive exemptions or deferrals that reduce or delay their tax bill.
  • You can challenge your home's appraised value through a formal protest process if you believe it is too high.

How the tax bill is calculated from appraisal and rate

The process starts with the appraisal. Each county has an appraisal district — a separate government body that values all real property in that county. They send you a notice of appraised value, usually in April or May. That value is what they believe your home would sell for on the open market. It is not the price you paid, and it is not what you think it is worth.

Once you have the appraised value, the tax assessor applies the tax rate. The rate is expressed as dollars per $100 of appraised value. If your home is appraised at $300,000 and the combined rate is $1.50 per $100, your tax bill is $4,500 before any exemptions. The rate itself comes from multiple sources: your school district sets one rate, your county sets another, your city sets another, and special districts (water, fire, hospital) set theirs. All of these are added together to create the total rate that applies to your address.

You receive one tax bill from the county tax assessor-collector, but that bill shows you the breakdown — how much goes to the school district, how much to the county, how much to the city, and so on. This breakdown matters if you want to understand where your money goes or if you want to attend a taxing unit's budget meeting to voice concerns about their rate.

Typical property tax rates across Texas counties

Texas property tax rates vary widely. In some rural counties with small school districts and minimal city services, the combined rate might be 0.4% to 0.6% of home value. In urban counties with large school districts and city services, rates often run 1.2% to 1.8%. A few counties exceed 2.0%. These differences reflect local choices about school funding, county services, and city infrastructure — not a state mandate.

School district rates make up the largest portion of most bills, typically 40% to 50% of the total. County rates usually account for 15% to 25%. City rates vary depending on whether you live in an incorporated city and what services it provides. Special districts (water, fire, hospital) add smaller amounts, usually 5% to 15% combined.

To find the exact rate for your address, look at your tax notice or contact your county appraisal district. You can also visit the Texas Comptroller of Public Accounts website, which publishes a statewide survey of rates by county and school district, though the rates change each year as taxing units adjust their budgets.

Homestead exemptions and deferrals that reduce your bill

If you own and live in your home as your primary residence, you may be may have access to to a homestead exemption. This exemption reduces the appraised value used to calculate your bill — it does not eliminate the tax, but it lowers the value that the tax rate is applied to. The amount of the exemption varies by school district and county. Some school districts exempt $25,000 of value; others exempt $40,000 or more. Counties and cities set their own exemption amounts, which are often different from the school district amount.

You must file for the homestead exemption with your appraisal district. The important date is usually April 30 of the year you want the exemption to take effect, though some districts extend it. You file once, and the exemption continues each year unless you move or sell the home.

If you are 65 or older, you may also be may have access to to a homestead tax deferral. This allows you to defer paying property tax on the portion of your bill that exceeds a certain amount — you still owe the tax, but you do not have to pay it while you live in the home. The deferred amount becomes a lien on the property and is paid from the proceeds when the home is sold or transferred. Disabled homeowners may also may have access to for deferrals under certain circumstances.

What happens if you disagree with the appraised value

If you believe the appraisal district has overvalued your home, you can file a formal protest. You have until May 15 (or a later date set by your appraisal district) to file. The protest is free and does not require a lawyer. You file a form with the appraisal district, and they will schedule a hearing before the Appraisal Review Board — a panel of local citizens who review valuation disputes.

At the hearing, you present evidence that the value is too high. This might include recent sales of comparable homes in your area, a professional appraisal you paid for, or documentation of property damage or defects. The Appraisal Review Board then decides whether to uphold, lower, or raise the appraised value. If you disagree with their decision, you can appeal to district court, though this is rare and involves legal costs.

Many homeowners successfully lower their appraised value through protest. The key is having evidence — comparable sales data, photographs of condition issues, or a professional appraisal. The appraisal district will provide you with information about how to file and what evidence is most useful for your situation.

Tax bills, payment important date, and penalties for late payment

Your tax bill is due on January 31 of the year following the tax year. For example, taxes on 2024 property value are due January 31, 2025. You can pay in full or in two installments: the first half is due January 31, and the second half is due June 30. If you pay late, a penalty of 1% per month accrues, plus interest. After 120 days of non-payment, the property may be referred to a tax sale.

You receive a tax bill in the mail from the county tax assessor-collector. If you do not receive it, contact the assessor-collector's office — it is your responsibility to pay on time whether or not you receive the bill. You can pay by mail, in person at the assessor-collector's office, or online if your county offers that option. Some counties allow automatic bank draft payments.

If you cannot pay the full amount, contact the tax assessor-collector when ready. Some counties offer payment plans for taxpayers facing hardship. Waiting until after the important date makes the situation worse because penalties and interest accumulate quickly.

How property tax differs from income tax in Texas

Texas has no state income tax on wages, salaries, or business income. This means the state relies much more heavily on property tax and sales tax to fund schools and local government. Because of this, Texas property tax rates tend to be higher than in states that have income tax. The trade-off is that you keep more of your paycheck — there is no state income tax withheld from your wages.

This structure also means that property tax is the primary way schools are funded in Texas. School districts cannot raise income tax; they can only raise property tax or seek voter approval for a tax rate increase. This is why school district rates make up such a large portion of most property tax bills and why school funding is often a topic of debate in local elections.

Frequently Asked Questions

Can I find out what my property tax will be before I buy a home?

Yes. Once you know the address and have an estimate of the purchase price, contact the county appraisal district and ask for the current appraised value and the combined tax rate for that address. Multiply the appraised value by the rate (expressed as a decimal) to estimate your annual bill. Keep in mind the appraisal may change after you purchase, and rates can change year to year.

What is the difference between appraised value and market value?

Appraised value is what the appraisal district believes your home would sell for. Market value is what it actually sells for. They are often different. A home appraised at $300,000 might sell for $320,000 or $280,000 depending on market conditions, buyer demand, and negotiation. The tax bill is based on appraised value, not what you paid or what it sold for.

Do I have to pay property tax if I own the land outright with no mortgage?

Yes. Property tax is owed by the owner of the property, regardless of whether there is a mortgage. If you own the land free and clear, you still owe property tax each year. If you do not pay, the county can place a lien on the property or sell it at a tax sale to recover the unpaid taxes.

What happens to my property tax bill if I rent out my home?

If you convert your home to a rental property, you lose the homestead exemption because you no longer live there as your primary residence. Your appraised value may also change because rental properties are sometimes valued differently than owner-occupied homes. Contact your appraisal district to report the change in use.

Can property tax rates go down, or do they only increase?

Rates can go either direction. Each year, taxing units set their budgets and calculate the rate needed to fund them. If a school district's budget decreases or property values in the county increase significantly, the rate might go down. In practice, rates tend to increase over time because budgets and services expand, but decreases do happen.