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 it does collect property tax. Every county and school district in Texas sets its own tax rate on real estate — your home, land, or rental property. You pay this tax to your county assessor's office, usually once or twice a year depending on where you live. The money funds public schools, county government, fire departments, libraries, and other local services.

Property tax in Texas is not optional. If you own real estate, you owe it. If you rent, your landlord pays it, and that cost is built into your rent. The rate varies dramatically by location — a home worth $300,000 might cost $3,000 a year in property tax in one county and $6,000 in another, depending on the local tax rate and what exemptions apply.

Key Takeaways

  • Texas property tax rates are set by county and school district, so the amount you owe depends entirely on where your property is located.
  • You receive a property tax bill from your county assessor's office, usually once or twice yearly, and payment is due by a set deadline or you face penalties.
  • Homeowners may reduce their tax bill through a homestead exemption, which lowers the taxable value of a primary residence.
  • If you disagree with your property's assessed value, you can file a protest with your county appraisal district, usually between April and May each year.

How property tax rates are calculated in Texas

Your property tax bill comes from two numbers: the assessed value of your property and the local tax rate. The county appraisal district determines the assessed value by looking at recent sales of similar homes, the condition of your property, and other factors. That value is then multiplied by the tax rate set by your county and school district.

The tax rate is expressed as a dollar amount per $100 of assessed value. For example, if your home is assessed at $300,000 and the combined rate is $2.00 per $100, your annual tax is $6,000. Rates vary widely — some Texas counties charge $1.20 per $100, others charge $2.50 or higher. School districts add their own rate on top of the county rate, so the final number depends on which school district your property sits in.

You can find your property's assessed value and the current tax rate on your county appraisal district's website. Most districts allow you to search by address or account number. The appraisal district is separate from the assessor's office that sends you the bill — the district values the property, and the assessor collects the payment.

When and how to pay your property tax bill

Your county assessor's office mails property tax bills once or twice per year, depending on the county. Most Texas counties send one bill annually, usually in October or November, with payment due by January 31 of the following year. Some larger counties split the bill into two payments. Check your county assessor's website to confirm the schedule for your location.

You can pay by mail, in person at the assessor's office, online through the county website, or by phone. Payment methods vary by county — some accept credit cards online, others do not. If you pay late, you owe a penalty plus interest. The penalty starts at 5 percent if you pay within 30 days of the deadline, then increases. After two years of non-payment, the county can place a lien on your property or sell it at a tax sale.

If you cannot pay the full amount by the deadline, contact your county assessor's office immediately. Some counties offer payment plans or can delay collection if you are facing hardship, though this is not may provide. The sooner you contact them, the more options you may have.

Homestead exemption and other ways to lower your tax bill

If you own your home and live in it as your primary residence, you may be able to claim a homestead exemption. This reduces the taxable value of your home, which lowers your tax bill. The amount of the reduction varies by school district — some reduce the value by $25,000, others by $50,000 or more. A few school districts offer additional exemptions for seniors or disabled homeowners.

To claim a homestead exemption, you file a form with your county appraisal district, usually by April 30 of the year you want it to take effect. You will need proof that you own the home and that it is your primary residence — a deed, mortgage statement, or utility bill typically works. Once approved, the exemption usually stays in place as long as you own the home and live in it.

Other exemptions exist for agricultural land, disabled veterans, and certain nonprofit organizations. If your property might may have access to for a special exemption, contact your county appraisal district to ask what forms and proof you need. The district staff can tell you whether your situation qualifies and what the reduction would be.

What to do if you think your property is assessed too high

If you believe your home's assessed value is wrong, you can file a protest with your county appraisal district. This is a formal objection to the value the district assigned to your property. Most districts accept protests between April 1 and May 15 each year, though the exact dates vary by county. You file the protest form with the appraisal district, not the assessor's office.

When you protest, you are asking the district to reconsider the value. You can provide evidence that the value is too high — recent appraisals, comparable sales of similar homes in worse condition, or documentation of damage or defects. The district will review your evidence and either agree to lower the value or uphold the original assessment. If you disagree with the result, you can request a hearing before an appraisal review board, which is a panel that hears disputes.

Filing a protest does not stop you from owing taxes on the original assessed value while the protest is pending. However, if the district later agrees to lower the value, you may receive a refund of overpaid taxes. Contact your county appraisal district for the protest form and deadline for your specific county.

Property tax exemptions for seniors and disabled homeowners

Texas offers additional property tax relief for homeowners age 65 or older and for disabled homeowners of any age. These exemptions reduce the taxable value of your home beyond the standard homestead exemption. The amount of the reduction varies by school district — some offer a flat dollar amount, others offer a percentage reduction.

To claim a senior or disability exemption, you file a form with your county appraisal district and provide proof of age or disability status. For seniors, a birth certificate or driver's license works. For disabled homeowners, you typically need a letter from the Social Security Administration, Veterans Administration, or a physician stating that you are permanently disabled. The appraisal district can tell you what documents they accept.

Some counties also offer a tax deferral program for seniors and disabled homeowners. This allows you to defer paying property tax until you sell the home or pass away, at which point the tax becomes due from your estate. Not all counties offer this, so check with your appraisal district to see if it is available where you live.

Frequently Asked Questions

Do renters pay property tax in Texas?

Renters do not pay property tax directly — the landlord does. However, the landlord's property tax cost is factored into the rent you pay. If property taxes rise, landlords often raise rent to cover the increase. You have no direct role in paying property tax, but you are affected by it indirectly through your rent.

What happens if I don't pay my property tax bill?

If you do not pay by the deadline, you owe a penalty starting at 5 percent plus interest. After two years of non-payment, the county can place a lien on your property or sell it at a tax sale to recover the debt. Contact your county assessor's office as soon as you know you cannot pay — some counties offer payment plans or temporary relief.

Can I appeal my property tax assessment?

Yes. File a protest with your county appraisal district between April 1 and May 15 (dates vary by county). Provide evidence that the assessed value is too high, such as recent appraisals or comparable home sales. If the district denies your protest, you can request a hearing before an appraisal review board.

How often does my property get reassessed?

Texas law requires county appraisal districts to reassess all properties every year. However, the assessed value does not always change — it only changes if the district finds that the market value of your property has changed. You receive a new tax bill each year showing the current assessed value.

Is there a cap on how much property tax can increase each year?

No. Property tax rates can increase year to year as counties and school districts raise their rates. However, if you own a home and have claimed a homestead exemption, the taxable value of your home is capped — it cannot increase more than 10 percent per year, even if the market value rises faster. This cap does not apply to investment properties or commercial real estate.