Understanding Texas Property Taxes: Complete 2026 Guide
Texas has no state income tax, so the money for schools, roads, hospitals and emergency services comes off your house instead. That arrangement produces a bill nobody sends you a warning about: your appraisal district reopens the value of your home every January, and every taxing unit that covers your parcel sets its own rate on top of that value between August and October. The bill you get in October is the product of both, and by then both are settled.
How Texas Property Taxes Are Calculated
The formula, and where the leverage is
Texas taxes the full market value - there is no assessment ratio the way California or New York have one, so the appraised value on your notice is the number the rate is applied to. That makes the appraisal the single most consequential thing on the document.
Market Value
The appraisal district values your house every year as of 1 January, at what it believes a willing buyer would pay a willing seller. Nobody visits. The value is produced by a mass appraisal model run across thousands of parcels, and a model that is right on average can be badly wrong on your house.
What follows from that:
A win one year does not carry to the next. The district reopens the value every January, so protesting is an annual habit rather than a one-off fix.
Exemptions
An exemption comes off the value before the rate is applied. The homestead exemption is $1,230 to $1,810 a year depending on your school district - and it is school-district only, so your county, city and hospital district still tax the full value.
Money Saver:
Some stack and some do not. Over-65 and disabled-person are the same size and you take one, not both; the veteran exemption under §11.22 is separate and applies to every taxing unit rather than just the school district.
Tax Rate
There is no state property tax in Texas. Your rate is the sum of the rates each local unit adopted for itself - school district, county, city, hospital district, community college, and any MUD drawn around your subdivision.
What the spread actually looks like:
Across the 254 counties the rates run 0.60% to 2.68%, with a median county at 1.60% and seventy percent of counties between 1.5% and 2.0%. The big urban counties are at or below that median, because a large tax base raises the same money at a lower rate.
Texas Property Tax Exemptions
Homestead Exemption - The Big One
School District Benefits:
- • $140,000 reduction in taxable value
- • Saves approximately $2,280/year for average home
- • 10% annual assessment increase cap
- • Required by law for all school districts
Local Government Benefits:
- • Counties: Up to 20% reduction ($5,000 max)
- • Cities: Varies, many offer $5,000+
- • Junior colleges: Often $3,000
- • Some water districts offer exemptions
Over-65 & Disability Exemptions
Over-65 Benefits:
- • Additional $60,000 exemption (total $200,000 with homestead)
- • School tax ceiling - taxes freeze forever
- • Transfers to surviving spouse
- • Can apply anytime during the year you turn 65
Example Savings:
65-year-old homeowner: $200,000 exemption + frozen school taxes = $3,000+ annual savings
Disability Benefits:
- • Additional $60,000 exemption
- • Optional school tax ceiling
- • SSI/SSDI recipients automatically qualify
- • Physician certification required
Qualification:
Must be unable to engage in substantial gainful activity due to physical/mental disability
Texas Veteran Exemptions
Disabled Veteran Exemptions
| Disability Rating | Exemption Amount | Annual Savings* |
|---|---|---|
| 10-29% | $5,000 | ~$81 |
| 30-49% | $7,500 | ~$122 |
| 50-69% | $60,000 | ~$978 |
| 70-99% | $12,000 | ~$195 |
| 100% | Total Exemption | $3,000+ |
*Based on average Texas tax rate of 1.63%
Texas Appraisal District System
Understanding Texas's Unique System
Texas has 254 counties, each with its own appraisal district (some share districts). This creates significant variation in procedures, deadlines, and local exemptions across the state.
What Appraisal Districts Do:
- • Discover and value all property
- • Maintain property records
- • Process exemption applications
- • Handle property tax protests
- • Conduct Appraisal Review Board hearings
Major Texas Appraisal Districts:
- • Harris County: Largest in Texas
- • Dallas County: Second largest
- • Travis County: Austin area
- • Tarrant County: Fort Worth area
- • Bexar County: San Antonio area
Texas Property Tax Timeline
January 1 - Assessment Date
Property ownership and condition determined for tax year. Must own and occupy for homestead exemption.
April 30 - Exemption Deadline
Deadline to apply for homestead, over-65, disabled, and veteran exemptions. Over-65 exemption can be applied for anytime during the year you turn 65.
March-April - Appraisal Notices Mailed
County appraisal districts mail Notice of Appraised Value to property owners.
May 15 - Protest Deadline
Deadline to file property tax protest (or 30 days from notice, whichever is later).
June-August - Hearings
Informal reviews and formal Appraisal Review Board hearings conducted.
October-January - Tax Bills
Tax bills mailed and payments due (typically October 1, with discounts for early payment).
Understanding Texas Tax Rates
Texas property tax rates vary significantly by location because they're set by local governments. Your total rate includes:
Typical Tax Rate Components
- School District:0.9% - 1.4%
- County:0.2% - 0.8%
- City:0.1% - 0.8%
- Junior College:0.1% - 0.3%
- Other Districts:0.1% - 0.5%
- Total Range:0.5% - 3.5%+
Tax Rate Examples
Lower Rate Example:
Some rural counties: 0.5% - 1.2%
$300K home = $1,500 - $3,600/year
Average Rate Example:
Texas average: ~1.63%
$300K home = ~$4,890/year
Higher Rate Example:
Some urban areas: 2.5% - 3%+
$300K home = $7,500 - $9,000+/year
Property Tax Protest Overview
Why Protest in Texas?
Success Rates:
- • The district must prove your value, not the other way round (§41.43)
- • An informal settlement with the appraiser ends most protests before the ARB
- • Even small reductions save hundreds annually
- • Process is free and legal right
Common Grounds for Protest:
- • Market value too high vs. comparable sales
- • Property condition issues
- • Errors in property description
- • Unequal appraisal vs. similar properties
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Texas Property Tax Payment Options
Early Payment
- • October: 3% discount
- • November: 2% discount
- • December: 1% discount
- • January 31: No discount, no penalty
Split Payments
Many counties allow split payments:
- • 50% by November 30
- • 50% by June 30
- • Helps with cash flow
- • No additional fees
Late Payment
- • February 1+: Penalties begin
- • 6% penalty in February
- • Additional 1% each month
- • Attorney fees possible
Remember: Keep records of all property tax payments for your federal tax return. FreeTaxUSA provides free federal filing with easy deduction entry.
Ready to Lower Your Texas Property Taxes?
Use our Texas Property Tax Calculator to see your potential savings with exemptions and determine if you should protest your assessment.
Calculate My Texas Property Taxes →Sources and References
Reviewed 1 September 2026. Citations follow APA style format; retrieval dates are the dates each source was last checked.
Texas Comptroller of Public Accounts
Texas Comptroller of Public Accounts. (2025). Property Tax Exemptions. Retrieved October 15, 2025, from https://comptroller.texas.gov/taxes/property-tax/exemptions/
Official source for Texas property tax exemption information, including homestead, over-65, disability, and veteran exemptions.
Texas Comptroller - Appraisal Protests and Appeals
Texas Comptroller of Public Accounts. (2025). Appraisal Protests and Appeals. Retrieved October 15, 2025, from https://comptroller.texas.gov/taxes/property-tax/protests/
Official guidance on property tax protest procedures, deadlines (May 15 or 30 days from notice), and appeal processes.
Texas Legislature - Senate Bill 4 (89th Session)
Texas Legislature. (2025). Senate Bill 4: Relating to increasing the amount of the residence homestead exemption from ad valorem taxation by a school district. 89th Legislature, Regular Session. Retrieved October 15, 2025, from https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB4
Legislation to increase homestead exemption from $100,000 to $140,000. Approved by voters in November 2025 and now in effect.
Texas Legislature - Senate Bill 23 (89th Session)
Texas Legislature. (2025). Senate Bill 23: Relating to increasing the amount of the residence homestead exemption from ad valorem taxation by a school district for persons who are elderly or disabled. 89th Legislature, Regular Session. Retrieved October 15, 2025, from https://capitol.texas.gov/BillLookup/History.aspx?LegSess=89R&Bill=SB23
Legislation to increase exemption for seniors 65+ and disabled homeowners from $10,000 to $60,000. Approved by voters in November 2025 and now in effect.
Texas Property Tax Code
Texas Legislature. (2023). Texas Tax Code, Section 11.13: Residence Homestead. Retrieved October 15, 2025, from https://statutes.capitol.texas.gov/Docs/TX/htm/TX.11.htm
Official Texas statute establishing the $140,000 mandatory school district homestead exemption and other exemption requirements.
Texas Comptroller - Property Tax Basics
Texas Comptroller of Public Accounts. (2025). Property Tax Basics. Retrieved October 15, 2025, from https://comptroller.texas.gov/taxes/property-tax/
General overview of Texas property tax system, including information about appraisal districts, tax rates, and assessment procedures.
Texas Appraisal Districts
Various Texas Central Appraisal Districts. (2025). Protest and Appeals Information. Retrieved October 15, 2025.
Information verified across multiple Texas appraisal districts including Harris CAD, Dallas CAD, Travis CAD, Bexar CAD, and Tarrant CAD regarding May 15 protest deadline and procedures.