Texas Does Have Property Tax, and It's Among the Highest in the Nation

Yes, Texas has property tax. If you own real estate in Texas — a house, land, a rental property, or commercial building — you will owe property tax to your county or local taxing unit. Texas has no state income tax, but it makes up for that with property taxes that rank near the top nationally. The average effective property tax rate in Texas is around 1.6% to 1.8% of a home's value, though this varies significantly by county and city.

Property tax in Texas is local, not state-run. Your county appraisal district sets the value of your property, and your county, city, school district, and other local entities set the tax rate. This means two identical houses in different counties can have very different tax bills. A house worth $300,000 might cost $4,800 a year in property tax in one county and $6,000 in another.

Key Takeaways

  • Texas property tax is set by local taxing units — your county, city, school district, and special districts — not by the state.
  • Your county appraisal district determines your property's value, and you can challenge that value if you believe it is too high.
  • Homeowners with a primary residence may may have access to for a homestead exemption that reduces the taxable value of the home by a set amount.
  • Property tax bills are due by January 31 each year, and penalties and interest explore if you pay late.
  • Senior citizens and disabled persons may may have access to for additional exemptions or tax deferrals that lower or delay their tax bills.

How Property Tax Is Calculated in Texas

Your property tax bill is the result of three steps: the appraisal district values your property, local taxing units set their tax rates, and the county multiplies the two together. The appraisal district — a separate government body in each county — sends appraisers to estimate the market value of your home. That value is called the appraised value. The taxing units (school district, city, county, water district, and others) then set a tax rate, usually expressed as dollars per $100 of appraised value. If your home is appraised at $300,000 and the combined tax rate is $1.60 per $100, your tax bill is $4,800.

The appraisal happens every year, though the appraised value does not always change. If your neighborhood is stable, your value may stay the same for several years. If property values rise sharply, your appraisal will rise with them. You receive a notice of appraised value in the mail, usually in April or May, and you have the right to challenge it if you believe the value is wrong.

Homestead Exemption and Other Breaks for Homeowners

If you own and live in your home as your primary residence, you may claim a homestead exemption. This exemption reduces the taxable value of your home, which lowers your tax bill. The amount varies by school district — some offer $25,000 off the appraised value, others offer more. The exemption applies to school district taxes only, not to city or county taxes, though some cities and counties offer their own homestead exemptions on top of the school district one.

To claim the homestead exemption, you file a form with your county appraisal district. You must own the home and live in it as your primary residence on January 1 of the tax year. If you buy a home mid-year, you can claim the exemption for the following year. The exemption stays in place year after year unless you move or sell the property.

Senior Citizens and Disabled Persons May may have access to for Tax Relief

Texas offers additional tax breaks for people age 65 and older and for disabled persons. Seniors can claim an exemption that freezes the appraised value of their home at the level it was when they first claimed the exemption. This means if your home was worth $250,000 when you turned 65, that is the value used to calculate your tax forever, even if the home is now worth $400,000. Disabled persons can claim a similar freeze on the appraised value.

Seniors and disabled persons may also defer their property taxes — that is, delay paying them — until the home is sold or the person passes away. The taxes still accrue and must be paid eventually, but deferral allows people on fixed incomes to stay in their homes without paying the full bill each year. You explore for these programs through your county appraisal district.

When and How to Pay Your Property Tax Bill

Property tax bills are due by January 31 each year. You receive a bill in the mail from your county tax assessor-collector, usually in October or November. You can pay by mail, in person at the tax office, or online through your county's website. If you pay late, you owe a penalty — typically 6% of the unpaid amount — plus interest that accrues monthly.

If you have a mortgage, your lender may require you to pay property tax through escrow, meaning you pay a portion each month with your mortgage payment and the lender pays the bill on your behalf. If you own the home outright, you are responsible for paying the bill yourself by the important date.

Challenging Your Appraised Value

If you believe your home is appraised too high, you can file a protest with your county appraisal district. You have until May 15 (or a few days later if that date falls on a weekend) to file. The protest is free, and you do not need a lawyer. You can submit evidence that your home is worth less — recent sales of similar homes, a professional appraisal, photos of needed repairs, or documentation of damage.

The appraisal district will review your protest and either lower the value, keep it the same, or offer a compromise. If you disagree with the result, you can appeal to the Appraisal Review Board, a panel of local citizens who hear disputes. If you still disagree after that, you can take the case to state district court, though most people settle before that step.

Property Tax Rates Vary Widely by Location

Texas law caps school district tax rates at $1.06 per $100 of appraised value without voter approval. Cities, counties, and other taxing units have no state cap, though they must hold public hearings before raising rates. In practice, combined rates range from about $1.20 per $100 in some rural areas to $2.00 or higher in wealthy suburbs and urban centers. A $300,000 home might cost $3,600 a year in property tax in one location and $6,000 in another, depending entirely on which taxing units serve that address.

Before buying a home in Texas, research the property tax rate in that specific city and school district. The county appraisal district website lists current rates, and you can calculate an estimate of your annual bill using the appraised value and the combined rate.

Frequently Asked Questions

Can I deduct property tax from my federal income tax?

Yes, but only up to $10,000 per year in total state and local taxes (property tax, income tax, and sales tax combined). This cap has been in place since 2017. Most Texas homeowners can deduct their full property tax bill because Texas has no state income tax, leaving more of the $10,000 limit available for property tax.

What happens if I do not pay my property tax?

The county can place a lien on your home and eventually foreclose and sell it to pay the unpaid taxes. However, this process takes time — typically at least two years of non-payment. If you cannot pay, contact your county tax assessor-collector about payment plans or the tax deferral program for seniors and disabled persons.

Do I owe property tax on a mobile home or RV?

Mobile homes that are affixed to land and treated as real property are taxed like houses. RVs and mobile homes that are not permanently attached are typically taxed as personal property, which is handled differently and varies by county. Check with your county appraisal district to determine how your specific property is classified.

Does Texas have a property tax on vehicles?

No. Texas does not tax vehicles as property tax. However, you pay registration fees and inspection fees when you register a vehicle with the Texas Department of Motor Vehicles. These are not property taxes but are separate fees.