Yes, there are property taxes in Texas, and for most homeowners they are the single largest tax they pay. Texas has no state property tax and no state income tax, so cities, counties, school districts, and special districts fund themselves almost entirely through the property taxes they levy locally.1Texas Comptroller. Property Tax System Basics What you owe each year depends on where your property sits, what the county appraisal district says it’s worth, and which exemptions you’ve claimed.
Who Actually Sets Your Texas Property Tax Bill
The state collects none of this money. Your bill is the sum of rates set by several overlapping local governments, each with its own budget and elected board:
- School districts, which usually take the largest share.
- County governments, which fund roads, courts, and the sheriff’s office.
- Cities, which fund police, fire, parks, and streets.
- Special-purpose districts such as municipal utility districts, hospital districts, and junior college districts.
Each unit adopts a rate expressed per $100 of taxable value.2Texas Comptroller of Public Accounts. Tax Rate Calculation Add those rates together, multiply by your taxable value, and that is your bill. Because the rates are set independently, two houses a block apart on opposite sides of a district boundary can carry very different bills.
Texas law also limits how far local officials can push rates before voters get a say. If a taxing unit adopts a rate above its voter-approval tax rate, the increase goes on the November ballot.3The Texas Secretary of State. Bond and Voter Approval Tax Rate Elections The Comptroller publishes proposed rate information for each entity through its property tax transparency site.4Texas.gov. Property Tax Transparency in Texas
How Your Property Gets Valued
Before any rate is applied, the county appraisal district assigns your property a value as of January 1 of the tax year.5Texas Comptroller of Public Accounts. Property Tax Law Deadlines Appraisers rely on mass appraisal, pulling sales data, construction costs, and income figures across large groups of similar properties rather than inspecting each one individually.
If the appraised value goes up from the prior year, the district has to send you a notice of appraised value. For homesteads, the notice must be mailed by April 1; for other property, by May 1 or as soon as practical afterward.6Texas Comptroller. Appraisal Protests and Appeals That notice is your opening to push back.
Exemptions That Lower What You Owe
Texas offers several exemptions that cut your taxable value, and most of them require you to file an application with your county appraisal district before May 1.7Texas Comptroller of Public Accounts. Property Tax Exemptions
Residence Homestead Exemption
If you own your home and live in it as your primary residence on January 1, school districts must exempt $140,000 of its appraised value under Texas Tax Code Section 11.13.8State of Texas. Texas Tax Code Chapter 11 – Taxable Property and Exemptions Cities and counties may offer additional homestead exemptions, often expressed as a percentage of value, and these vary by jurisdiction. The homestead exemption is the single most valuable step most Texas homeowners can take, and it’s free to apply.
The 10 Percent Homestead Appraisal Cap
Once your homestead exemption is in place, Texas Tax Code Section 23.23 limits how fast your appraised value can climb. The district cannot raise your homestead’s appraised value by more than 10 percent per year, plus the value of any new improvements you’ve made.9State of Texas. Texas Tax Code Chapter 23 – Appraisal Methods and Procedures The cap governs the value only. Your bill can still rise if local rates go up.
Age 65 or Older and Disability Exemptions
Homeowners who are 65 or older, or who have a qualifying disability, get an extra $10,000 exemption on the homestead for school district taxes. They also get a tax ceiling: the school portion of their bill is locked at the amount set in the year they qualify and cannot go up unless they improve the home. Many cities and counties offer similar ceilings, but participation varies.
Disabled Veteran Exemptions
Texas veterans with a service-connected disability qualify for an exemption tied to their VA rating:10Texas Veterans Commission. Property Tax Exemptions Available to Veterans Per Disability Rating
- 100 percent rating: complete exemption from property taxes on the residence homestead.11Comptroller of Public Accounts. 100 Percent Disabled Veteran and Surviving Spouse Frequently Asked Questions
- 70 to 99 percent: $12,000 off the property’s value.
- 50 to 69 percent: $10,000.
- 30 to 49 percent: $7,500.
- 10 to 29 percent: $5,000.
Veterans with a rating below 100 percent can apply the exemption to any property they own, not just a homestead. Surviving spouses of veterans who held the 100 percent exemption may be able to keep it.
Protesting an Appraisal You Think Is Too High
Filing a protest is free, and it is the most common way Texas owners reduce their tax bills. The deadline is May 15, or 30 days after the appraisal district mails your notice of appraised value, whichever is later.6Texas Comptroller. Appraisal Protests and Appeals
Most districts start with an informal meeting. You bring evidence — recent comparable sales, photos of damage, an independent appraisal — and the staff appraiser may offer a lower value on the spot. Accept it, or decline and keep your right to a formal hearing.
At the formal hearing, the Appraisal Review Board hears both sides. You can choose to present first or second, call witnesses, introduce documents, and cross-examine. The ARB can only consider evidence that is actually presented at the hearing, and evidence you requested from the district that wasn’t delivered to you at least 14 days beforehand must be excluded.12Texas Comptroller of Public Accounts. Model Hearing Procedures for Appraisal Review Boards If you lose and still disagree, you can appeal to state district court or, for property appraised at $5 million or less, pursue binding arbitration.
Agricultural and Open-Space Land
Land used mainly for agriculture, timber, or wildlife management can be appraised on its productivity value rather than its market value, which usually produces a much smaller taxable figure.13Texas Comptroller of Public Accounts. Agricultural, Timberland and Wildlife Management Use Special Appraisal To qualify, the land must be currently devoted principally to agricultural use at the level of intensity common in the area, and it must have been used that way for at least five of the past seven years. Qualifying uses include growing crops, raising livestock or poultry, and raising certain exotic animals commercially. Wildlife management can also qualify if the land was previously under ag or timber appraisal.
If the use changes — say, a rancher sells to a developer — the owner owes rollback taxes for the previous three years. The rollback is the difference between taxes paid under the productivity value and taxes that would have been owed at full market value, plus 1 percent interest per month from each original due date.14Texas Comptroller. Land Use Tax Bills Anyone buying or selling ag land should price that risk into the deal.
When Bills Arrive and When They’re Due
Tax bills are generally mailed throughout October. You have until January 31 to pay in full with no penalty. Anything unpaid on February 1 is delinquent.15Texas Comptroller of Public Accounts. Paying Your Taxes When January 31 falls on a weekend or holiday, the deadline moves to the next business day. Most tax offices take payment by mail, in person, or online.
What Late Payment Costs
Penalties and interest start the moment the bill goes delinquent and keep climbing:16Texas Comptroller of Public Accounts. Penalty Tax Bills
- February: 6 percent penalty plus 1 percent interest, for 7 percent total.
- March through June: the penalty adds another percentage point each month, reaching 10 percent in June, and interest adds another 1 percent per month.
- July 1: the penalty jumps to 12 percent and stops growing. An additional penalty of up to 20 percent can be tacked on for attorney collection fees if the account has been referred out.
- After July: the 12 percent penalty holds, and interest keeps running at 1 percent per month until you pay.
A year of delinquency can add roughly 24 percent or more to the original bill before attorney fees.
Unpaid taxes also create an automatic lien on the property. A taxing unit can sue to foreclose at any point once taxes are delinquent, and if a court enters judgment and the owner still doesn’t pay, the property goes to public auction. The owner has to receive written notice of the sale beforehand.
Relief for Homeowners 65 or Older and Those With Disabilities
Beyond the extra exemption and school tax ceiling, qualifying homeowners can defer their property taxes entirely for as long as they own and live in the home. Interest still accrues at 5 percent per year on the deferred balance, and the full amount comes due when the home is sold or the owner moves out. These homeowners can also split the year’s taxes into four equal installments instead of paying all at once, as long as they notify the tax office before the delinquency date.5Texas Comptroller of Public Accounts. Property Tax Law Deadlines
A Note for Business Owners
Residential property owners pay tax on land and buildings only; everyday household items — your car, furniture, clothes — are not taxed. Businesses are different. If you own a business in Texas, you have to file a rendition each year listing the tangible personal property your business owned or controlled on January 1: equipment, inventory, furniture, vehicles, and supplies. The rendition is due April 15, with a written extension available to May 15.5Texas Comptroller of Public Accounts. Property Tax Law Deadlines Filing late, or not filing, triggers a penalty added to your tax bill,16Texas Comptroller of Public Accounts. Penalty Tax Bills and if you don’t file at all the district will estimate your property value on its own, usually higher than what you would have reported.