Texas does have property taxes, and they are set and collected by counties and local school districts, not the state

Texas has no state income tax, but it does collect property taxes. These taxes are the main way Texas funds schools, counties, cities, and special districts like water authorities. Your property tax bill comes from your local county assessor and tax collector, not from Austin. The rate you pay depends entirely on where your property sits — different counties and school districts set different rates.

Property taxes in Texas are based on the appraised value of your land and buildings. The county appraisal district estimates what your property is worth, then multiplies that value by the tax rate set by each taxing unit in your area. If you own a home worth $300,000 and your combined local tax rate is 1.5%, you owe $4,500 per year. That same home in a different county might have a different rate and a different bill.

Key Takeaways

  • Texas counties and school districts set property tax rates; there is no statewide rate, so your bill depends on your location.
  • Property taxes are calculated by multiplying your home's appraised value by the local tax rate, and the county appraisal district determines the appraised value.
  • Homeowners can claim a homestead exemption to reduce the taxable value of their primary residence, which lowers the amount owed.
  • Property tax bills are due by January 31 each year, and you can protest the appraised value of your home if you believe it is too high.
  • Texas offers property tax deferrals and exemptions for seniors over 65, disabled persons, and surviving spouses of military members.

Who sets the property tax rate in Texas

No single state agency sets a property tax rate for all of Texas. Instead, each taxing unit — your county, city, school district, and any special districts serving your area — votes on its own rate. A school district might set a rate of 1.06% of appraised value, while the county sets 0.35%, and the city sets 0.40%. You pay all three rates on the same bill.

The county appraisal district does not set the rate; it only determines what your property is worth. Once the appraisal district assigns a value, each taxing unit applies its rate to that value. If you live in an area with many taxing units, your total rate can be higher than in a rural area with fewer units.

How the county appraisal district values your home

The county appraisal district sends a representative to inspect your property or uses public records, sales data, and comparable homes in your area to estimate its market value. This appraised value is not what you paid for the home or what you think it is worth — it is what the district believes it would sell for on the open market. The district updates appraisals every year or every few years, depending on the county.

You receive a notice of appraised value in the mail, usually in April or May. If you disagree with the value, you can file a protest with the appraisal review board before the deadline, which is typically in May or June. You do not need a lawyer; you can present evidence yourself, such as recent repair costs, photos of damage, or sales prices of similar homes that sold for less.

Homestead exemption and other ways to lower your bill

If your home is your primary residence, you can claim a homestead exemption. This exemption reduces the taxable value of your home, which lowers your property tax bill. The exemption amount varies by school district and county — some districts exempt $25,000 of value, others exempt more. You apply for the exemption through your county appraisal district, usually by submitting a form and proof that the home is your primary residence.

Texas also offers exemptions for seniors over 65, disabled persons, and surviving spouses of military members killed in action. These exemptions can reduce your taxable value further or, in some cases, freeze your appraised value so it does not increase year to year. You must apply for these exemptions; they are not automatic.

When property tax bills are due and how to pay

Property tax bills are due by January 31 each year. Your tax bill arrives in October or November, and you can pay in full or in installments. If you pay in installments, the first payment is usually due by November 30, and the final payment is due by January 31. Payments made after January 31 are considered late and may incur penalties and interest.

You can pay your property taxes to your county tax collector by mail, in person, or online through the county's website. Some counties allow automatic payments through your bank. If you own property in multiple counties, you receive separate bills from each county's tax collector.

Property tax rates vary widely across Texas

Texas has no statewide property tax cap, so rates differ significantly from county to county and even between school districts within the same county. Some areas have combined rates below 1%, while others exceed 2%. Rural counties with fewer services and smaller school districts often have lower rates than urban areas with more taxing units.

If you are considering moving within Texas or buying property, the property tax rate in that location is worth researching. You can find the tax rate for any address by contacting the county appraisal district or visiting the county's website. The rate affects your annual housing costs as much as your mortgage payment does.

Protesting your appraised value and filing for exemptions

If you receive your notice of appraised value and believe it is too high, you have a window of time — usually 30 days — to file a protest with the appraisal review board. You can protest by mail, in person, or online, depending on your county. Bring evidence such as recent appraisals, repair estimates, or comparable sales in your neighborhood.

If you have not yet claimed a homestead exemption or another exemption you are may have access to to, file the application with the appraisal district as soon as possible. Exemptions typically take effect in the year you apply, so delaying costs you money. The application is straightforward and requires proof of residency or disability status.

Frequently Asked Questions

What happens if I do not pay my property taxes?

If property taxes remain unpaid after January 31, penalties and interest accrue. After a period of non-payment, usually around two years, the county can place a lien on your property or sell it at a tax sale to recover the debt. Contact your county tax collector immediately if you cannot pay in full.

Can I get a property tax deferral if I am a senior or disabled?

Yes. Texas allows seniors over 65 and disabled persons to defer property taxes on their primary residence. You still owe the taxes, but payment is postponed until the property is sold or transferred. You must apply through your county appraisal district and meet income limits, which vary by county.

Does renting a home mean I pay property taxes?

No. Renters do not pay property taxes directly. The property owner pays the taxes, and the cost is often factored into the rent. As a renter, you have no property tax bill or obligation.

How often does the county reappraise my home?

Most Texas counties reappraise all properties every year, though some do it every three years. You receive a new notice of appraised value each time. Check your county appraisal district's website to learn the reappraisal cycle in your area.

Can I appeal a property tax bill after it is issued?

You can protest the appraised value before the bill is issued, which is the most effective way to lower your bill. After the bill is issued, you can still file a protest if you are within the deadline, but the process is the same. Contact your county appraisal district for the current protest deadline in your area.