Key Takeaways
- No state income tax -- Texas funds services through property taxes averaging 1.8-2.5%
- Homestead exemption: $100,000 reduction in taxable value for school district taxes, saving $800-$1,200/year
- Protest success rate: 60-70% of residential protests result in a reduction
- Key deadline: File your protest by May 15 (or 30 days after notice, whichever is later)
How Texas Property Tax Works
Texas is one of nine states with no personal state income tax. To fund public schools, roads, emergency services, and local government, the state relies heavily on property taxes. This structure means that while you keep more of your paycheck, you pay more on the home you own.
Here is how the system works. Each January 1, your county appraisal district determines the market value of your property. This appraisal is based on comparable sales, income potential, and replacement cost. You receive a Notice of Appraised Value, typically in mid-April, showing what the county believes your property is worth.
Multiple taxing entities then apply their tax rates to your appraised value (minus any exemptions). These entities include your school district, county government, city (if applicable), community college district, hospital district, and any special districts like MUDs (Municipal Utility Districts). Each entity sets its own rate annually. Your total tax bill is the sum of all these rates multiplied by your taxable value.
For example, a home appraised at $400,000 in Travis County (Austin) with a homestead exemption might have a taxable value of $300,000 for school taxes and $400,000 for all other entities. With a combined rate of approximately 1.8%, the total annual tax bill would be roughly $6,800-$7,200.
Texas law caps annual increases in appraised value for homestead properties at 10% per year. This means even if your home's market value jumps 20% in a year, your taxable value can only increase by 10%. This cap protects long-term homeowners from sudden spikes but does not limit the appraised value for new purchases.
County-by-County Tax Rates
Property tax rates vary dramatically across Texas. The table below shows effective rates for the major counties and what they mean in annual and monthly costs on homes at different price points.
| County (Metro) | Effective Rate | Tax on $300K Home | Tax on $400K Home | Tax on $500K Home |
|---|---|---|---|---|
| Travis (Austin) | 1.8% | $5,400/yr ($450/mo) | $7,200/yr ($600/mo) | $9,000/yr ($750/mo) |
| Williamson (Round Rock) | 2.2% | $6,600/yr ($550/mo) | $8,800/yr ($733/mo) | $11,000/yr ($917/mo) |
| Harris (Houston) | 2.1% | $6,300/yr ($525/mo) | $8,400/yr ($700/mo) | $10,500/yr ($875/mo) |
| Fort Bend (Sugar Land) | 2.3% | $6,900/yr ($575/mo) | $9,200/yr ($767/mo) | $11,500/yr ($958/mo) |
| Dallas (Dallas) | 2.0% | $6,000/yr ($500/mo) | $8,000/yr ($667/mo) | $10,000/yr ($833/mo) |
| Collin (Plano, Frisco) | 2.1% | $6,300/yr ($525/mo) | $8,400/yr ($700/mo) | $10,500/yr ($875/mo) |
| Tarrant (Fort Worth) | 2.1% | $6,300/yr ($525/mo) | $8,400/yr ($700/mo) | $10,500/yr ($875/mo) |
| Bexar (San Antonio) | 2.2% | $6,600/yr ($550/mo) | $8,800/yr ($733/mo) | $11,000/yr ($917/mo) |
| Comal (New Braunfels) | 1.7% | $5,100/yr ($425/mo) | $6,800/yr ($567/mo) | $8,500/yr ($708/mo) |
| Hays (Kyle, San Marcos) | 2.0% | $6,000/yr ($500/mo) | $8,000/yr ($667/mo) | $10,000/yr ($833/mo) |
Note: Effective rates shown are before homestead exemption. Actual tax bills will be lower for primary residences that have filed for the exemption. Rates are approximate and based on 2025-2026 combined rates for all taxing entities.
Use our property tax calculator to estimate taxes for any specific address in Texas.
The Homestead Exemption ($100K)
The homestead exemption is the single most valuable tax benefit for Texas homeowners. As of 2023 (Proposition 4), the school district homestead exemption was increased to $100,000. This means $100,000 is subtracted from your home's appraised value before calculating school district taxes.
Here is what that savings looks like in practice:
| Home Value | Without Exemption (School Tax) | With $100K Exemption | Annual Savings |
|---|---|---|---|
| $300,000 | $3,300 | $2,200 | $1,100 |
| $400,000 | $4,400 | $3,300 | $1,100 |
| $500,000 | $5,500 | $4,400 | $1,100 |
| $750,000 | $8,250 | $7,150 | $1,100 |
Based on an approximate school tax rate of 1.1%. Actual savings vary by school district.
How to File for the Homestead Exemption
- When: File any time after you purchase and occupy the home as your primary residence. There is no deadline, but filing sooner means you start saving sooner. If you file before April 30, the exemption applies to the current tax year.
- Where: File with your county appraisal district. Most counties accept online filings through their website.
- What you need: Texas driver's license or ID (address must match the property), closing documents or deed, and the completed exemption application form.
- Cost: Free. You should never pay anyone to file this for you.
In addition to the $100,000 school district exemption, many cities and counties offer their own homestead exemptions ranging from $5,000 to $75,000. Check with your specific appraisal district for all available exemptions.
Over-65, Disabled, and Veteran Exemptions
Over-65 Exemption
Texas homeowners aged 65 or older receive an additional $10,000 school district tax exemption on top of the standard homestead exemption. More importantly, they receive a tax ceiling -- their school district taxes are frozen at the amount they paid the year they turned 65 or first qualified. Even if property values rise 50% over the next decade, school taxes stay the same. Many cities and counties offer additional over-65 exemptions, often ranging from $3,000 to $75,000.
Disabled Person Exemption
Homeowners with a disability (as defined by Social Security or VA disability) qualify for the same $10,000 additional school district exemption and tax ceiling as over-65 homeowners. If you qualify as both over-65 and disabled, you receive only one additional exemption (not both), but you can choose the larger amount.
Disabled Veteran Exemption
Texas offers significant property tax benefits for disabled veterans based on their disability rating:
- 10-29% disability: $5,000 exemption from total property value
- 30-49% disability: $7,500 exemption
- 50-69% disability: $10,000 exemption
- 70-100% disability: $12,000 exemption
- 100% disability or unemployability: Complete exemption from all property taxes on the homestead
Surviving spouses of veterans who died in service or from service-connected injuries may also qualify for a full exemption. Contact your county appraisal district for details and required documentation.
How to Protest Your Property Taxes (Step-by-Step)
Protesting your property tax appraisal is your legal right, and it is one of the most effective ways to reduce your annual tax bill. Approximately 60-70% of residential protests in Texas result in a reduction, with average savings of $500-$1,500 per year. Here is exactly how to do it.
When your Notice of Appraised Value arrives (typically mid-April), review the assessed value carefully. Check for errors in square footage, room count, lot size, and property condition. Compare the appraised value to what you believe your home would actually sell for on the open market. If the appraisal district's value is higher than market reality, you have grounds to protest.
File a Notice of Protest with your county appraisal district by May 15 (or 30 days after the notice was mailed, whichever is later). Most counties allow online filing through their appraisal district website. You can also file in person or by mail. The filing is free and does not require an attorney. Check the "unequal appraisal" and "value is over market value" boxes on the form for maximum flexibility.
This is where protests are won or lost. Compile 5-10 comparable home sales within 1 mile of your property from the past 6-12 months. Focus on homes with similar square footage, lot size, age, and condition. Use sites like Zillow, Redfin, or your county appraisal district's search tool. Document any condition issues (needed repairs, outdated systems, foundation problems) with photos. Calculate the price per square foot of your comparables and compare it to the appraisal district's implied price per square foot for your home.
After filing, you will be scheduled for an informal hearing with an appraiser from the appraisal district. This is a one-on-one meeting (in person or online) where you present your comparable sales data and any condition evidence. Be polite, professional, and organized. Most protests (approximately 70%) are resolved at this stage. The appraiser has authority to reduce your value on the spot. If they offer a reduction, consider whether it is close enough to accept -- you can always counter, and you can still proceed to the formal hearing if you disagree.
If the informal hearing does not resolve your protest, you will be scheduled before the Appraisal Review Board (ARB). This is a panel of appointed citizens who hear evidence from both you and the appraisal district, then issue a binding decision. Present the same comparable sales evidence clearly and concisely. You typically have 15-20 minutes. Bring printed copies of all evidence for the panel members. The ARB's decision can be appealed through binding arbitration (for homes under $5 million) or district court.
Important Deadline Calendar
2026 Texas Property Tax Calendar
- January 1 Appraisal date -- property values are assessed as of this date
- April 1-15 Notices of Appraised Value mailed to homeowners
- April 30 Deadline to file homestead exemption for current tax year
- May 15 Deadline to file property tax protest (or 30 days after notice mailed)
- May-July Informal and ARB hearings conducted
- July 25 Appraisal rolls certified by appraisal district
- October Tax bills mailed by county tax assessor-collector
- January 31 Tax payment deadline -- penalties and interest begin February 1
How Property Taxes Affect Affordability
Property taxes are the single biggest factor that differentiates Texas home affordability from other states. When lenders calculate your debt-to-income ratio, they include property taxes in your monthly housing payment. Higher taxes mean a smaller mortgage, which means a less expensive home.
Here is the real-world impact. On a $100,000 household income with a 28% front-end DTI limit ($2,333/month max housing payment), the difference between a 1.0% and 2.2% property tax rate is roughly $80,000 in buying power. A buyer in Colorado (1.0% effective rate) can afford approximately $500,000 on the same income that supports $420,000 in Austin (2.0% effective rate).
The homestead exemption partially offsets this. On a $450,000 home, the $100,000 school tax exemption saves approximately $90/month in property taxes, which translates to roughly $12,000 in additional buying power. This is why filing for the homestead exemption immediately after purchase is so important.
For a detailed breakdown of what you can afford at every income level in Texas, see our Texas Home Affordability Guide. For city-specific affordability data, visit our Austin, Dallas, Houston, and San Antonio city pages.
Frequently Asked Questions
The average effective property tax rate in Texas is approximately 1.8% of appraised value, but rates vary significantly by county. Travis County (Austin) averages 1.8%, Harris County (Houston) averages 2.1%, Dallas County averages 2.0%, Bexar County (San Antonio) averages 2.2%, and Tarrant County (Fort Worth) averages 2.1%. Some suburban counties exceed 2.5%.
The Texas homestead exemption reduces the taxable value of your primary residence by $100,000 for school district taxes. If your home is appraised at $400,000, you only pay school taxes on $300,000. This saves roughly $800-$1,200 per year depending on your school tax rate. You must file for the exemption with your county appraisal district after purchasing your home. There is no deadline for filing, but you should file as soon as possible.
The deadline to file a property tax protest in Texas is May 15, or 30 days after the Notice of Appraised Value was mailed, whichever is later. Most appraisal notices are mailed in mid-April. You must file a Notice of Protest with your county appraisal district by the deadline. Late filings are generally not accepted unless you can demonstrate good cause.
Property tax protests in Texas have a high success rate. Approximately 60-70% of residential protests result in a reduction, with average savings of $500-$1,500 per year. Properties with clear comparable sales data supporting a lower value have the highest success rates. The informal hearing stage resolves most protests without needing to go to the Appraisal Review Board.
Texas homeowners aged 65 or older qualify for an additional $10,000 school district tax exemption on their primary residence, plus a tax ceiling that freezes their school district taxes at the amount owed the year they turned 65 or the year they filed the exemption. Many cities and counties offer additional over-65 exemptions of $3,000-$75,000. You must apply through your county appraisal district with proof of age.
Need Help Understanding Your Property Taxes?
Our Texas agents can help you understand how property taxes affect your home purchase, identify all exemptions you qualify for, and connect you with protest services.
Book a Free ConsultationYou May Also Like
Related Resources
Last updated: June 5, 2026
