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

Texas has no state income tax, but it funds schools and local government through property taxes instead. The rate you pay depends entirely on where your property sits — which county, which school district, which city or town. There is no single "Texas property tax rate." A house worth $300,000 in one county might generate $3,000 a year in taxes, while the same house in another county could cost $5,000 or more.

The tax is calculated by taking your property's assessed value, multiplying it by the tax rate (called the "tax rate" or "millage rate"), and adding up all the different taxing units that claim a piece of your property. Most properties fall under four or five taxing units: the county, the school district, the city or town, and sometimes a special district for water, fire, or drainage.

You receive a property tax bill once a year, usually in October or November, from your county tax assessor-collector. The bill shows the assessed value, each taxing unit's rate, and the total you owe. Payment is typically due by January 31 of the following year, though some counties allow installment payments.

Key Takeaways

  • Texas property tax rates range from roughly 0.4% to 2.5% of assessed property value depending on location, with no statewide cap.
  • Your bill combines taxes from your county, school district, city or town, and any special districts that serve your property.
  • The county appraisal district sets the assessed value of your home; you can protest this value if you believe it is too high.
  • Homeowners over 65, disabled homeowners, and low-income families may may have access to for exemptions or tax deferrals that reduce or delay payment.
  • Your tax bill arrives in October or November and is due by January 31, with late payments subject to penalties and interest.

How the tax rate is set and what it covers

Each taxing unit — county, school district, city — sets its own tax rate independently. The school district usually takes the largest share, typically 40% to 60% of your total bill. The county takes the next largest piece, followed by the city or town. Special districts (for water, fire, or drainage) take smaller slices.

Rates are expressed as dollars per $100 of assessed value. A rate of $1.50 per $100 means you pay $1.50 for every $100 your home is assessed at. If your home is assessed at $300,000, a $1.50 rate generates $4,500 in taxes from that taxing unit alone. When you add up all the units, the combined rate might be $2.00 per $100, which would total $6,000 on that same $300,000 home.

The rates themselves vary widely. School districts in wealthy suburbs might have rates around $1.00 per $100, while rural districts with smaller tax bases might be $1.80 or higher. Counties range from $0.30 to $0.80 per $100. Cities vary just as much. You can find your specific rates on your county appraisal district's website or by calling the tax assessor-collector's office.

What assessed value means and how it affects your bill

The assessed value is not the price you paid for your home or what it would sell for today. It is the value the county appraisal district assigns to your property for tax purposes. In Texas, the appraisal district is required to assess property at 100% of market value — meaning the price a willing buyer and seller would agree on in an arm's-length transaction.

In practice, appraisal districts use a mix of recent sales data, income approaches (for rental properties), and cost approaches to estimate value. They do not physically inspect every home every year. Instead, they use computer models, aerial photos, and sales comparables to update values. If your neighborhood has seen recent sales, those sales heavily influence your assessed value.

The appraisal district sends you a notice of appraised value in April or May each year. If you disagree with the value, you can file a protest with the appraisal review board (ARB) — a local panel that hears disputes. The protest deadline is usually in May or June. You do not need a lawyer; many homeowners represent themselves and bring photos, repair estimates, or comparable sales to show the value is too high. If you win, your assessed value drops and your tax bill drops with it.

Exemptions and deferrals that can lower your bill

Texas offers several exemptions that reduce assessed value and therefore lower your tax bill. The most common is the homestead exemption, which applies to your primary residence. The exemption amount varies by school district and county — some offer 20% off the assessed value, others offer a flat dollar amount. You must file for the homestead exemption with your county appraisal district; it does not happen automatically.

If you are 65 or older, you may may have access to for an additional age-based exemption on top of the homestead exemption. Disabled homeowners and disabled veterans may also may have access to for exemptions. Low-income seniors and disabled people can file for a tax deferral, which postpones payment until the property is sold or the owner passes away — the taxes do not disappear, but you do not have to pay them now.

Agricultural land, timber land, and wildlife management land can be taxed under special valuation schemes that are much lower than market value, but you must meet specific use requirements and file for this status. If you convert the land to non-agricultural use, the taxes jump back to market value and you may owe back taxes.

How to find your specific tax rate and what to expect to pay

To find your exact tax rate, visit your county appraisal district's website. Most districts publish a tax rate table that shows the rate for each taxing unit in each area of the county. You can also call the county tax assessor-collector's office and ask for the combined rate for your address.

Once you have the rate and your assessed value, the math is straightforward. Multiply your assessed value by the combined rate, then divide by 100. A $300,000 home with a combined rate of $2.00 per $100 generates $6,000 in annual taxes. A $500,000 home with the same rate generates $10,000.

Texas has no cap on property tax rates, so rates can increase year to year if taxing units raise them. However, school districts face a limit: they cannot raise the tax rate more than 8% per year without holding a public hearing and getting voter approval for anything above that threshold. Counties and cities have no such limit, though they must hold public hearings before raising rates.

What happens if you do not pay on time

Property tax bills are due by January 31. If you do not pay by that date, a penalty of 6% of the unpaid amount is added immediately. After 30 days, the penalty increases to 12%. Interest accrues at 1% per month on the unpaid balance. After two years of non-payment, the county can file a tax lien against your property, which clouds the title and prevents you from selling or refinancing without paying the debt.

If taxes remain unpaid for three years, the county can foreclose on the property and sell it at a tax sale. The process varies by county, but generally the county will advertise the sale and conduct an auction. The winning bidder receives a deed to the property after a redemption period (usually six months to two years, depending on the county).

If you cannot pay your full bill by January 31, contact your county tax assessor-collector immediately. Many counties offer payment plans or installment agreements that let you pay in two or four installments spread across the year. Some also offer hardship deferrals for people facing temporary financial difficulty. These options are not automatic — you must request them.

Frequently Asked Questions

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

Yes. Ask the seller's real estate agent for the current tax bill, or contact the county tax assessor-collector with the property address. The bill shows the assessed value and the tax amount. Keep in mind that if you are buying at a price higher than the current assessed value, the appraisal district will likely increase the value after the sale closes, which will raise your tax bill.

Do I have to pay property taxes if I own my home outright with no mortgage?

Yes. Property taxes are owed by the owner of record, regardless of whether there is a mortgage. If you do not pay, the county can place a lien on the property and eventually foreclose. A mortgage lender requires you to pay taxes as part of your loan agreement, but if you own the home free and clear, the obligation to pay is still there — there is just no lender enforcing it.

What is a tax certificate and why would someone buy one?

When property taxes go unpaid, the county sells a tax certificate to an investor. The certificate gives the investor the right to collect the unpaid taxes plus interest and penalties. If the property owner does not redeem the certificate within a set period (usually one to two years), the investor can foreclose and take ownership of the property. Investors buy certificates hoping to earn the interest or eventually own the property at a discount.

Are property taxes deductible on my federal income tax return?

You can deduct state and local property taxes (SALT) on your federal return, but only up to $10,000 per year as of 2024. This limit applies to all state and local taxes combined — income tax, sales tax, and property tax together. Consult a tax professional about whether your situation allows you to benefit from this deduction.

What if I disagree with my assessed value but miss the protest deadline?

You can still file a late protest, but you must show good cause for missing the deadline — illness, absence from the county, or a postal delay, for example. The appraisal review board has discretion to accept or reject late protests. If rejected, your only remaining option is to file a lawsuit in district court, which is expensive and time-consuming. Mark your calendar for the protest deadline each year to avoid this situation.