Texas does have property tax, and it is the main way the state funds schools, counties, and local services

Texas has no state income tax, but every property owner pays property tax to their county and school district. The tax is based on the assessed value of your land and buildings, not on what you earn. Your county appraisal district sets the value, and your local taxing units — school districts, counties, cities, and special districts — set the tax rate.

Property tax bills in Texas vary widely by location. A house worth $300,000 might cost $4,000 a year in property tax in one county and $6,000 in another, depending on local tax rates. There is no statewide property tax rate; each jurisdiction sets its own.

Key Takeaways

  • Texas property tax is set by your county appraisal district (which determines value) and your local taxing units like school districts and counties (which set the rate).
  • Tax rates vary by location and can range from roughly 0.4% to 2% of your home's assessed value, depending on your county and school district.
  • Your property tax bill funds schools, county services, city services, and special districts like water authorities — not state government.
  • Homeowners over 65, disabled homeowners, and low-income families may may have access to for exemptions or deferrals that reduce or delay their tax bill.
  • If you disagree with your home's assessed value, you can file a protest with your appraisal district, usually between April and May each year.

Who sets the tax rate and how it is calculated

Your property tax bill comes from two separate decisions. First, your county appraisal district determines the market value of your property — the price it would sell for on the open market. Second, your local taxing units (school district, county, city, and any special districts) each set a tax rate, expressed as a dollar amount per $100 of assessed value.

For example, if your home is appraised at $300,000 and your school district's rate is $1.50 per $100 of value, your school tax is $4,500. If your county rate is $0.40 per $100, your county tax is $1,200. Your total bill is the sum of all these rates applied to your appraised value. Most Texas homeowners pay between $0.80 and $2.00 per $100 of value across all taxing units combined, but this varies significantly by region.

What property tax pays for in Texas

Property tax funds local services, not state government. The largest share goes to public schools — roughly 50% of most property tax bills. The remainder funds county operations (courts, sheriff, roads), city services (police, fire, streets, parks), and special districts (water, drainage, hospital districts).

Because Texas has no state income tax, schools and local governments depend almost entirely on property tax revenue. This is why property tax rates are higher in Texas than in states with income tax, and why they vary so much from one county to another — wealthier areas with higher property values can fund services with lower rates, while less wealthy areas need higher rates to raise the same dollars.

Homestead exemptions and tax breaks

Texas offers a homestead exemption that reduces the taxable value of your primary residence. Most school districts exempt 20% of your home's value from taxation, and counties typically exempt 20% as well. Some school districts exempt more. If your home is appraised at $300,000 and your school district exempts 20%, your taxable value for school purposes is $240,000, not $300,000.

To claim a homestead exemption, you must own and live in the home as your primary residence. You file a one-time application with your appraisal district; the exemption continues each year unless you move or sell. Renters do not pay property tax directly and do not need an exemption.

Additional breaks exist for homeowners over 65, disabled homeowners, and surviving spouses of disabled veterans. These may include larger exemptions or the ability to freeze your tax value at its current level so it does not increase as your home appreciates. You must apply for these separately through your appraisal district.

How to protest your appraised value

If you believe your home's appraised value is too high, you can file a protest with your appraisal district. The protest window is usually open from April through May, though the exact dates vary by county. You can file online, by mail, or in person at your appraisal district office.

To protest, you will need evidence that the value is wrong — comparable sales of similar homes in your area, a recent appraisal you paid for, photos of damage or needed repairs, or documentation that the property description is inaccurate (wrong square footage, for example). The appraisal district will review your evidence and either adjust the value or uphold it. If you disagree with the result, you can request a hearing before the appraisal review board, which is a panel of local citizens.

Filing a protest does not delay your tax bill. You still owe taxes based on the appraised value while your protest is pending. However, if your protest succeeds, you receive a refund for the overpayment.

Property tax deferrals for low-income and elderly homeowners

Texas allows homeowners over 65 or disabled homeowners to defer property taxes — meaning you do not have to pay them while you own and live in the home. The taxes become due when you sell the property or pass it to your heirs. This is not a forgiveness; it is a delay.

To defer taxes, you must meet income limits set by your county. These limits vary, but generally allow homeowners with modest incomes to participate. You apply through your appraisal district. Deferral does not reduce your tax bill; it only postpones payment.

Property tax rates across Texas counties

Texas property tax rates are not uniform. Rates depend on local decisions about school funding, county services, and city services in each area. Some counties and school districts are wealthy enough to fund services with lower rates; others need higher rates to raise the same revenue.

As a rough guide, total property tax rates (combining school, county, city, and special district taxes) range from about 0.4% to 2.0% of assessed value across Texas, but this is a wide range. Your actual rate depends on your specific location. You can find your local rates by contacting your county appraisal district or checking your most recent tax bill, which breaks down the rate for each taxing unit.

Frequently Asked Questions

Do renters pay property tax in Texas?

No. Renters do not pay property tax directly. The property owner pays it, and the cost is typically built into the rent. Renters do not file tax forms or claim exemptions related to property tax.

Can I get a property tax exemption if I own multiple homes?

No. The homestead exemption applies only to your primary residence — the home where you live most of the time. If you own a second home or investment property, it does not receive the exemption and is taxed at full value.

What happens if I do not pay my property tax bill?

Your county can place a lien on your property and eventually foreclose and sell it to recover the unpaid taxes. If you cannot pay, contact your county tax assessor-collector about payment plans or tax deferral options for which you may be may be able to access.

Does Texas property tax increase every year?

Your tax bill can increase if your home's appraised value increases or if local taxing units raise their tax rates. Homeowners over 65 who have frozen their tax value will not see increases due to appreciation, but their bill can still rise if tax rates increase.

How do I find out what my home is appraised at?

Your county appraisal district mails appraisal notices each year, usually in April or May. You can also look up your property value online through your appraisal district's website or by visiting their office in person. The appraisal district is a county agency separate from the tax assessor-collector.