Austin and Travis County business property tax rates

Business property in Austin and Travis County is taxed at a combined rate of roughly 1.8% to 2.0% of the property's assessed value each year. The exact rate depends on which taxing jurisdictions your property falls within — the city of Austin, Travis County, school districts, and special districts all set their own rates and add them together.

Austin's city rate is typically around 0.47% to 0.50% of assessed value. Travis County's rate runs approximately 0.35% to 0.40%. The school district portion — usually the largest single piece — ranges from 0.80% to 1.0% depending on which district covers your location. If your property sits in a special taxing district (for water, fire, or other services), that adds another layer on top.

These rates shift annually. The Travis Central Appraisal District resets property values each January, and each taxing body votes on its rate in the summer. Your actual bill depends on both the rate and the appraised value of your land and buildings.

Key Takeaways

  • Combined business property tax in Austin and Travis County typically runs 1.8% to 2.0% of appraised value per year, but the exact amount depends on which city, county, school, and special districts your property falls within.
  • The Travis Central Appraisal District sets property values each January, and each taxing body votes on its rate in summer, so your bill can change year to year.
  • Austin's city portion is usually the smallest piece; school districts typically make up the largest share of the total bill.
  • You can protest your property's appraised value through the appraisal district if you believe it is too high, and the important date to file is usually in May.

How the appraisal district sets your property value

The Travis Central Appraisal District (TCAD) values all taxable property in the county, including your business building and land. They do this once per year, and the value they assign is the starting point for your tax bill. TCAD appraisers look at comparable sales, the condition of the building, the land size, and income the property generates if it is leased out.

You can look up your property's appraised value on the TCAD website for free. Search by address or account number, and you will see the land value, building value, and total appraised value. This is the number the taxing bodies multiply by their rates to calculate what you owe.

If you believe the appraised value is too high, you can file a protest with TCAD. The important date is usually the later of 30 days after you receive your notice of appraised value or May 15 each year. You do not need a lawyer to protest, though some business owners hire one. TCAD will schedule a hearing, and you can present evidence — recent appraisals, repair costs, comparable properties, or income statements — to support a lower value.

What counts as business property and what does not

Business property includes the building itself, land, machinery, equipment, and fixtures that are permanently attached and used in the business. A retail storefront, office building, warehouse, or manufacturing facility all count. Furniture, computers, vehicles, and inventory may also be taxed as personal property, depending on how they are classified.

Some property is exempt from taxation. Nonprofits, religious organizations, and government entities do not pay property tax. Homesteads (primary residences) receive a homestead exemption that lowers the taxable value. Agricultural land can may have access to for agricultural exemption if it meets acreage and use requirements. If your business operates from your home and you claim the homestead exemption, only the portion used for business may be taxable.

You can request exemptions through TCAD. The process important date vary by exemption type, but most fall between January and April. If TCAD denies your request, you can appeal through the same protest process used for value disputes.

How tax bills are calculated and when they are due

Your bill is calculated by multiplying your appraised value by the combined tax rate of all jurisdictions that cover your property. If your property is appraised at $500,000 and the combined rate is 1.9%, your annual tax bill is $9,500. Bills are issued in October and are due by January 31 of the following year.

You can pay in full by the important date, or you can pay in two installments: the first half by January 31 and the second half by July 31. If you miss the January 31 important date, penalties and interest begin to accrue. After 60 days of non-payment, the property becomes subject to a tax sale.

Bills are mailed to the address on file with the appraisal district. If you do not receive a bill, you are still responsible for payment. You can pay online through the Travis County tax assessor-collector website, by mail, or in person at their office.

Differences between Austin city limits and unincorporated Travis County

Property inside Austin city limits pays the city tax rate in addition to county, school, and special district rates. Property in unincorporated Travis County (outside city limits) does not pay the city rate, so the total bill is lower. The difference is typically 0.47% to 0.50% of appraised value — a meaningful reduction for high-value properties.

Some areas near Austin are in incorporated suburbs like Round Rock, Cedar Park, or Pflugerville, which have their own city rates. These rates vary by city and may be higher or lower than Austin's. If you are considering a location, check which city or county jurisdiction it falls under, because that affects your ongoing tax cost.

School district boundaries also do not always follow city lines. Your property may be in Austin city limits but served by a different school district than Austin Independent School District. The district rate is set by that district's board, not by the city, so you need to know which district covers your address to calculate the full bill.

Business tax exemptions and special valuations

Texas offers a few tax breaks for certain business property. Freeport exemptions allow goods held for export to be taxed at a lower rate or not at all, depending on how long they are stored. Pollution control exemptions explore to equipment installed to reduce pollution. Renewable energy exemptions cover solar panels and wind turbines used to generate power for the business.

To claim any of these exemptions, you must file an process with TCAD before the important date — usually by April 30. You will need to describe the property, explain how it qualifies, and provide supporting documents. TCAD will review the process and notify you of approval or denial. If denied, you can appeal through the protest process.

Some property may also may have access to for special valuation based on its use rather than market value. Agricultural land, for example, is valued based on agricultural productivity, not what a developer might pay for it. If your business property includes agricultural land or qualifies under another special use category, you may pay less tax than the market value would suggest.

How to find your property's tax information and history

You can access your property's tax records through three main sources. The Travis Central Appraisal District website shows the appraised value, exemptions, and property details. The Travis County tax assessor-collector website displays your tax bill, payment history, and allows online payment. The Travis County appraisal review board handles appeals if you disagree with TCAD's value or exemption decision.

All three websites are free and searchable by address or account number. You can also visit the offices in person — TCAD is located in downtown Austin, and the tax assessor-collector has multiple locations across the county. Staff can answer questions about your specific property and explain how your bill was calculated.

If you hire a property tax consultant or appraiser to help you protest your value, they can also pull these records and help you prepare your case. Some consultants work on contingency, meaning they take a percentage of the tax savings they achieve, rather than charging an upfront fee.

Frequently Asked Questions

Can I deduct business property tax from my federal income tax?

Yes, business property tax is generally deductible as a business expense on your federal tax return. You report it on Schedule C (for sole proprietors), Schedule E (for rental property), or the appropriate business tax form for your entity type. State and local property taxes are also deductible under federal law, though there are limits on how much you can deduct in some cases. Consult a tax professional about your specific situation.

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

Penalties and interest begin to accrue after January 31. After 60 days of non-payment, the property becomes may be able to access for a tax sale. The county can sell your property to recover the unpaid taxes, though the process takes several months. You can contact the tax assessor-collector to set up a payment plan if you cannot pay in full.

How often does my property get reappraised?

TCAD reappraises all property every year. The new appraised value takes effect on January 1. However, reappraisal does not always mean your value goes up — it can stay the same or decrease if market conditions change or if you successfully protest the previous year's value.

Do I need to file a homestead exemption if my business is in my home?

If you live in the home and it is your primary residence, you can claim a homestead exemption on the residential portion. The portion used exclusively for business may still be taxable as business property. TCAD will determine what percentage qualifies for exemption based on the square footage and use of each area.

Where can I find the current tax rates for my specific location?

Tax rates are published by each taxing body — the city of Austin, Travis County, your school district, and any special districts — usually in August or September after they vote on the budget. You can find them on each entity's website, or TCAD can tell you the combined rate for your specific address if you call or visit in person.