Texas Property Tax FAQ
Understanding Texas property taxes - rates, exemptions, protests, and payment options explained.
Tax Rates & Basics
How much are property taxes in Texas?
Texas has no state property tax, but local jurisdictions set rates. The effective rate averages 1.6-2.5% of assessed value, varying by county and city. On a $400,000 home, expect $6,400-$10,000 annually. Texas compensates for no state income tax with higher property taxes than most states.
Why are Texas property taxes so high?
Texas relies heavily on property taxes because there's no state income tax. Property taxes fund public schools (typically the largest portion), county services, city services, and special districts. The total rate combines multiple taxing entities, each setting their own rate.
When are property taxes due in Texas?
Texas property taxes are due January 31 of the following year (e.g., 2026 taxes are due January 31, 2027). Bills are mailed in October. Most homeowners have taxes escrowed into their monthly mortgage payment. Late payments incur penalties of 6% in February, increasing monthly.
How are Texas property values assessed?
County appraisal districts assess property values annually as of January 1. They use market data including comparable sales, property condition, and improvements. You receive a notice of appraised value in April-May and have the right to protest if you disagree with the valuation.
Homestead Exemption
What is the Texas Homestead Exemption?
The Homestead Exemption reduces the taxable value of your primary residence. As of 2024, school district taxes exempt $100,000 from your assessed value. Counties and cities may offer additional exemptions of $5,000-$20,000. This can save homeowners $2,000-$5,000+ annually.
How do I apply for the Homestead Exemption?
File Form 50-114 with your county appraisal district. You'll need your Texas driver's license matching the property address. File by April 30 of the year following your purchase. Many counties allow online filing. The exemption remains active until you sell or stop using it as your primary residence.
Can I get a Homestead Exemption on a second home?
No, the Homestead Exemption only applies to your primary residence - the home where you live and have your driver's license registered. You cannot claim it on investment properties, vacation homes, or rental properties. You can only have one homestead exemption at a time.
What additional exemptions exist for seniors and disabled homeowners?
Homeowners 65+ and disabled homeowners qualify for an additional $10,000 school tax exemption, a school tax freeze (your school taxes can never increase), and often additional county/city exemptions. Surviving spouses 55+ may retain the senior exemption. These can save thousands more annually.
Protesting Property Taxes
How do I protest my property tax assessment in Texas?
File a protest with your county appraisal district by May 15 (or 30 days after receiving your notice). You can protest online, by mail, or in person. Provide evidence like comparable sales, photos of property issues, or a recent appraisal. Many protests result in 5-15% reductions.
Is it worth protesting my property taxes?
Yes - over 50% of protests result in some reduction. Even a 5% reduction on a $400,000 home saves $200-$500 annually. You can protest yourself for free or hire a property tax consultant (typically 25-40% of savings as their fee). There's no penalty for protesting.
What evidence do I need for a property tax protest?
Strong evidence includes: comparable sales showing your home is overvalued, photos of property defects (foundation issues, roof damage, dated interiors), independent appraisals, and MLS data. The appraisal district must prove market value, so any evidence supporting a lower value helps.
Can I hire someone to protest my property taxes?
Yes, property tax consultants and law firms specialize in protests. Most work on a contingency basis - you only pay if they reduce your taxes (typically 25-40% of the first year's savings). This is a good option if you're uncomfortable with the process or don't have time.
Tax Payments & Special Situations
Can I pay my Texas property taxes in installments?
Seniors 65+, disabled homeowners, and disabled veterans can split payments into quarterly installments without penalty. For other homeowners, most mortgage companies escrow taxes into monthly payments. If paying directly, the full amount is due January 31.
What happens if I don't pay my property taxes in Texas?
Late penalties start at 6% in February and increase monthly up to 12% by July, plus interest charges. After July 1, an additional 20% collection fee may be added. Prolonged non-payment can lead to a tax lien and eventual foreclosure. Payment plans may be available.
How do property taxes affect my home's affordability?
Texas property taxes significantly impact monthly costs. On a $400,000 home at 2.2% tax rate, you'd pay about $733/month just in taxes - added to your mortgage payment. Always factor taxes into your budget. Use our Mortgage Calculator to see the full picture.
Do property taxes change when I sell my home?
Property taxes are prorated between buyer and seller at closing. The new owner's future taxes may differ if the property is reassessed. Texas does have a 10% annual cap on appraised value increases for homesteaded properties, but a new purchase may trigger a higher assessment.
Property Tax Information Sources
Information on this page is sourced from official Texas and federal agencies. Always verify current rates, requirements, and regulations with the appropriate authority.
- Texas Comptroller of Public Accounts - Official property tax information and exemption guidelines
- Travis Central Appraisal District - Austin area property valuations and protest information
- Harris County Appraisal District - Houston area property tax assessments
- Dallas Central Appraisal District - Dallas area property valuations
- Bexar Appraisal District - San Antonio area property tax information
Have More Questions?
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