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

Texas has no state income tax, but it funds schools and local services through property tax instead. The amount you pay depends entirely on where your property sits — your county, school district, city, and special taxing districts all set their own rates. There is no single "Texas property tax rate." A house worth $300,000 in one county might have a tax bill $2,000 higher or lower than an identical house in another county 50 miles away.

Your property tax bill is calculated by multiplying your home's appraised value by the combined tax rate of every taxing unit that covers your address. The appraisal district in your county determines the value; the taxing units (school district, county, city, water district, hospital district) each set their own rate as a percentage of that value. You receive one combined bill, but the money is divided among all of them.

Key Takeaways

  • Texas property tax rates range from roughly 0.4% to 2.5% of home value depending on location, with school districts making up the largest portion of most bills.
  • Your county appraisal district sets the home value; taxing units (school district, county, city) each set their own tax rate on top of that value.
  • You can protest your home's appraised value with the appraisal district if you believe it is too high, and this protest does not require a lawyer.
  • Homeowners over 65 and disabled homeowners may may have access to for exemptions that reduce the taxable value of their home.
  • Your tax bill arrives in October or November and is due by January 31 of the following year, though you can pay in two installments.

How the appraisal district determines your home's value

Each county has one appraisal district that values all residential, commercial, and industrial property in that county. The appraisal district is not part of city or county government — it is a separate taxing unit that answers to a board of directors appointed by the taxing units it serves. The district sends appraisers to inspect properties, review sales data, and assign a value to your home. This value is what all the tax rates are applied to.

The appraisal district mails you a notice of appraised value in April or May each year. This notice shows the value the district assigned to your home and land. If you disagree with this value, you have until mid-May to file a protest with the appraisal district's Appraisal Review Board (ARB). You do not need a lawyer or a real estate agent to protest — you can do it yourself by mail or in person. The ARB will review your protest and either uphold the value, lower it, or raise it. If you disagree with the ARB's decision, you can appeal to district court, but most people settle at the ARB level.

What makes up your combined tax rate

Your property tax bill is the sum of rates set by multiple taxing units. In most Texas counties, the school district's rate is the largest piece — typically 1.0% to 1.5% of your home's value. The county government, city government, and any special districts (water, hospital, emergency services) each add their own rate on top. A typical combined rate in an urban area might be 1.6% to 1.8% of home value; in a rural area it might be 0.8% to 1.2%.

Each taxing unit sets its rate based on its budget and the total value of property in its jurisdiction. If your county appraisal district values all homes in the county at $50 billion, and the county government needs $200 million to run, the county's rate will be set to collect that amount. The school district does the same calculation separately. You cannot change any individual rate — you can only protest the value your home was assigned, which lowers all the rates applied to it proportionally.

Homestead exemptions and other reductions

If you own and live in your home as your primary residence, you may be able to claim a homestead exemption. This exemption reduces the taxable value of your home, which lowers your tax bill. Every school district in Texas must offer a homestead exemption of at least 20% of home value for school tax purposes. Many school districts offer more — some offer 25% or 30%. Counties and cities may also offer homestead exemptions, though they are not required to.

To claim a homestead exemption, you file a form with your county appraisal district. The deadline is usually April 30 of the year you want the exemption to take effect. You will need to show proof that you own the home and live there — a deed, a mortgage statement, or a utility bill usually works. Once approved, the exemption stays in place as long as you own and live in the home, even if you sell it to another owner-occupant (the new owner must file their own exemption).

Homeowners age 65 and older, and homeowners with disabilities, may also may have access to for an age or disability exemption that further reduces taxable value. Some school districts offer this; most counties and cities do. The amount varies by district. You file the same form as the homestead exemption, but you must also provide proof of age or disability (birth certificate, Social Security card, or disability information letter). These exemptions stack — you can claim both homestead and age/disability exemptions on the same property.

When your tax bill arrives and how to pay

Your property tax bill is mailed in October or November each year. The bill shows the appraised value, the exemptions applied, the taxable value, the tax rate, and the total amount due. The bill is due by January 31 of the following year. You can pay the full amount at once, or you can pay in two installments: the first half by November 30, the second half by January 31. If you pay late, penalties and interest accrue at a rate set by state law — typically 1% per month plus a flat penalty.

You can pay by mail, online, or in person at your county tax assessor-collector's office. Some counties allow automatic bank drafts or credit card payments, though credit card payments usually carry a processing fee. If you cannot pay the full amount, contact your tax assessor-collector's office — some counties offer payment plans for taxpayers in hardship, though this is not required by state law.

Property tax rates by region and what affects them

Texas property tax rates vary widely. In some rural counties with low property values and low service demand, the combined rate might be 0.4% to 0.6% of home value. In urban areas with high-value property and robust school systems, the combined rate might be 1.8% to 2.5%. The difference is driven by local choices about school funding, county services, and city services — not by state policy.

School districts account for the largest variation. A school district in a wealthy suburb might have a rate of 1.2% because property values are high and the district can fund schools with less tax per dollar of value. A school district in a rural area might have a rate of 1.6% because property values are lower and the district needs to tax at a higher rate to fund the same services. Both districts may spend roughly the same amount per student, but the tax rate looks different because the tax base is different.

Frequently Asked Questions

Can I lower my property tax bill without moving?

Yes. If you own and live in your home, claim a homestead exemption if you have not already — this is the most direct way to lower your bill. If you believe your home's appraised value is too high, file a protest with your appraisal district's Appraisal Review Board by mid-May. If you are 65 or older or disabled, also file for an age or disability exemption. These steps do not require a lawyer.

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

If your bill remains unpaid after January 31, penalties and interest begin to accrue. After two years of non-payment, the county tax assessor-collector can file a tax suit and place a lien on your property. If the debt is not resolved, the county can foreclose and sell your home at a tax sale. Contact your tax assessor-collector's office immediately if you cannot pay — some counties offer payment plans or can connect you with assistance programs.

Do renters pay property tax?

Renters do not pay property tax directly — the landlord pays it. However, property tax is often factored into the rent amount the landlord charges. Renters do not receive tax bills and do not have the option to claim exemptions. If you are a renter and your income is low, you may be able to claim a property tax refund through the state, though this is a separate program with its own income limits.

How often does my home get reappraised?

Texas law requires appraisal districts to reappraise all property at least once every three years. Most districts reappraise annually. You receive a new notice of appraised value each year, and you can protest the new value each year if you believe it is incorrect. The appraisal district must mail the notice by May 15, and you must file a protest by mid-May to be heard by the Appraisal Review Board.

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

No state-wide cap exists for residential property. However, if your home is appraised as agricultural land and you may have access to for agricultural use exemption, the appraisal must be based on agricultural value, not market value — this can result in a much lower tax bill. For homesteads, there is no annual increase cap, but you can protest any year's appraisal if you believe the value is wrong.