Dallas tax rates come in three main pieces: an 8.25% combined sales tax on most purchases, property taxes totaling about $2.12 per $100 of assessed value for tax year 2025 across the four main overlapping jurisdictions, and a 15% hotel occupancy tax on short-term lodging. Each one is actually a stack of smaller rates charged by different governments, and the stack is what determines what you actually owe.
Sales Tax in Dallas
Every taxable purchase inside Dallas city limits is charged at 8.25%. Texas collects 6.25% of that under Texas Tax Code Section 151.051.1State of Texas. Texas Tax Code Section 151.051 – Sales Tax Imposed The remaining 2% is split evenly: 1% goes to the City of Dallas and 1% goes to Dallas Area Rapid Transit.2Texas Comptroller of Public Accounts. Local Sales and Use Tax Frequently Asked Questions That same 8.25% rate applies to most tangible goods and taxable services sold within the city.
What’s Exempt
Groceries and food products for home consumption are exempt from Texas sales tax.3State of Texas. Texas Tax Code Tax 151.314 Prescription medications and most over-the-counter drugs labeled with an FDA “Drug Facts” panel are also exempt. The exemption reaches further than many shoppers realize: pain relievers, allergy medication, sunscreen, hand sanitizer, bandages, and gauze all qualify. Dietary supplements with a “Supplement Facts” label are exempt too, though products containing CBD are not.4Texas Comptroller of Public Accounts. Sales Tax Exemptions for Healthcare Items
Property Tax Rates for Tax Year 2025
There is no single Dallas property tax rate. Your bill is the sum of rates set independently by each jurisdiction that covers your address, and most Dallas homeowners fall under at least four of them. For tax year 2025, the most recently adopted rates are:
- City of Dallas: $0.6988 per $100 of assessed value
- Dallas County: $0.2155 per $100
- Parkland Hospital (Dallas County Hospital District): $0.2120 per $100
- Dallas ISD: $0.9938 per $100
Added together, those four come to roughly $2.12 per $100 of assessed value.5Dallas County. 2025 Tax Rates The school district is almost half the total, which is typical across Texas. Some addresses also sit inside additional districts or special improvement zones that add smaller amounts on top.
Running the Math on Your Home
The Dallas Central Appraisal District sets a market value for every property in the county. Subtract any exemptions you qualify for and what’s left is your taxable value. Divide that by 100, then multiply by each jurisdiction’s rate.
Take a home with a taxable value of $300,000. Divide by 100 and you get 3,000. Multiply by the City of Dallas rate of $0.6988 and the city portion alone is about $2,096. Repeat for the county, hospital district, and school district, and the combined bill lands near $6,360 — the Dallas ISD slice by itself runs about $2,981.
Exemptions That Lower Your Bill
Exemptions reduce your taxable value before any rate is applied, so they cut what you owe across every jurisdiction at once. The homestead exemption is the big one, and it costs nothing to claim beyond filing paperwork.
Homestead Exemption
If you own and live in your home as your primary residence, Texas law requires every school district to exempt $140,000 of its appraised value from school taxes.6State of Texas. Texas Tax Code Section 11.13 – Residence Homestead On a $400,000 home, only $260,000 is exposed to the Dallas ISD rate. Cities and counties may adopt their own additional homestead exemptions, with amounts set by each governing body.7Texas Comptroller of Public Accounts. Property Tax Exemptions
Over-65 and Disabled Homeowner Exemptions
Homeowners who are 65 or older, or who are disabled, receive an additional $60,000 school tax exemption on top of the standard $140,000, bringing the school portion up to $200,000 exempt.6State of Texas. Texas Tax Code Section 11.13 – Residence Homestead Other taxing units may add their own senior and disabled exemptions.
The over-65 exemption also triggers a school tax ceiling. Once you qualify, your school district taxes are frozen at the dollar amount you paid in that first qualifying year. The ceiling stays with you as long as you live in the home, though significant improvements adjust it upward. Rising appraisals won’t push your school bill higher, and school taxes are usually the biggest piece of the total.
Applications for both the homestead and over-65 exemptions go through the Dallas Central Appraisal District. The recommended filing deadline is April 30 of the year you’re claiming.8Dallas Central Appraisal District. Dallas Central Appraisal District
Protesting Your Appraisal
If the appraisal from DCAD looks too high, you can challenge it, and this is the step most homeowners skip. The deadline to file a notice of protest is May 15, or 30 days after your notice of appraised value was mailed, whichever is later.9State of Texas. Texas Tax Code Tax 41.44 – Notice of Protest Miss it and you’re generally locked into the proposed value for the full tax year. You’re on the hook for the deadline even if the notice never reaches your mailbox.
After filing, you can request an informal meeting with a DCAD appraiser. A large share of protests settle at this stage.10Texas Comptroller of Public Accounts. Appraisal Protests and Appeals Bring comparable sales, photos of condition problems, and any independent appraisal you have.
If the informal conference doesn’t resolve things, your case goes to the Appraisal Review Board, a panel of local citizens that hears disputes between owners and the appraisal district.11Texas Comptroller of Public Accounts. Appraisal Review Boards Hearings generally run May through July. The ARB’s decision applies only to that tax year, so a bad outcome doesn’t permanently set your value.
Professional property tax consultants work on contingency, typically charging between 12% and 40% of the tax savings they produce. On a high-value home the fee often pays for itself. On a smaller home, filing yourself is simple enough that the math may not favor hiring help.
When Property Taxes Are Due
Tax collectors must mail bills by October 1 or as soon after as practicable.12State of Texas. Texas Tax Code Tax 31.01 – Tax Bills Taxes are due on receipt and become delinquent if not paid before February 1 of the following year.13State of Texas. Texas Tax Code Tax 31.02 – Delinquency Date
Penalty and Interest Schedule
Delinquency starts on February 1 with a 6% penalty plus 1% interest. Each following month adds another 1% penalty and 1% interest.14State of Texas. Texas Tax Code Tax 33.01 – Penalties and Interest The running totals:
- February: 7% (6% penalty plus 1% interest)
- March: 9%
- April: 11%
- May: 13%
- June: 15%
- July: 18% (penalty becomes a flat 12% regardless of prior months, plus 6% accumulated interest)
July 1 is the cliff. On top of the 18% in penalties and interest, taxing units typically tack on attorney collection fees of up to 20% of the original tax amount.14State of Texas. Texas Tax Code Tax 33.01 – Penalties and Interest On a $6,000 bill, that’s roughly $1,080 in penalties and interest plus another $1,200 in collection fees by midsummer. Continued nonpayment can lead to tax lien foreclosure.
Installment Option for Seniors and Disabled Homeowners
Homeowners who are 65 or older, disabled, or disabled veterans with a qualifying homestead exemption can split their property tax bill into four equal installments with no penalty or interest. The first installment is due before February 1, and the rest before April 1, June 1, and August 1.15State of Texas. Texas Tax Code Tax 31.031 You have to include written notice with the first payment that you’re using the plan. Missing an installment triggers a 6% penalty on the unpaid portion plus ongoing interest.16Dallas County. Payment Arrangements
Hotel Occupancy Tax
Guests at Dallas hotels, motels, and short-term rentals pay a combined 15% hotel occupancy tax on the room charge. Texas collects 6% under Tax Code Chapter 156, and the City of Dallas collects 9%: a 7% general hotel tax under Tax Code Chapter 351 plus a 2% venue project tax.17City of Dallas. Hotel Occupancy Tax General Information The city’s share funds tourism promotion and convention center operations.
A long-stay exemption applies at 30 consecutive days. Guests who stay that long are treated as permanent residents and stop owing hotel tax. Give the hotel written notice before your stay that you intend to stay 30 or more consecutive days, and actually do so, and the exemption applies from the date of notification. Without advance notice, you pay for the first 30 days and the exemption kicks in on day 31. Any interruption in the stay resets the clock.18Texas Film Commission. Hotel Occupancy Tax Exemptions
Business Personal Property Tax
Businesses in Dallas owe property tax on tangible personal property as well as real estate: equipment, furniture, inventory, machinery, and similar assets. Each year, business owners file a rendition listing those assets and their estimated value as of January 1. The rendition deadline is April 15.19Texas Comptroller of Public Accounts. Texas Businesses: April 15 Is Deadline for Filing Property Tax Renditions
Starting in 2026, businesses with total personal property valued at $125,000 or less qualify for a full exemption that zeroes out their taxable business personal property. For businesses above that threshold, the first $125,000 of value per location per taxing unit is still exempt. Businesses that qualify for the full exemption file a one-time rendition certifying that their value falls under the limit; those above $125,000 file annually.20Texas Comptroller of Public Accounts. Texas Property Tax Basics – January 2026