To calculate property tax in Texas, take your home’s appraised value, subtract the exemptions each taxing unit grants, divide the remaining taxable value by 100, and multiply by that unit’s tax rate. Do this for every taxing unit your property sits inside — typically a school district, a county, a city, and any special districts — and add the results. That sum is your annual bill.
The three numbers you need are the appraised value set by your county’s appraisal district, the exemptions you qualify for, and the tax rates each local unit adopts. Each one has its own timing and its own rules, so it helps to walk through them in order.
Step 1: Find Your Appraised Value
Every county in Texas has a Central Appraisal District that assigns a value to each property within its borders.1State of Texas. Texas Tax Code 6.01 – Appraisal Districts Established Each year the district sets a market value (what the property would sell for) and an appraised value (the figure taxes are calculated from). For most properties these are identical.
If the home is your primary residence and you have a homestead exemption in place, state law caps how fast the appraised value can rise. Under Tax Code Section 23.23, the appraised value of a residence homestead cannot increase more than 10 percent per year, plus the value of any new improvements.2State of Texas. Texas Tax Code 23.23 – Limitation on Appraised Value of Residence Homestead In a fast-appreciating market, the appraised value can stay well below market value for several years running.
The appraisal district mails a Notice of Appraised Value in the spring, generally April or May.3Texas Comptroller. Property Tax Law Deadlines That notice is not a bill. It is the number the rest of the calculation runs on.
Step 2: Subtract Your Exemptions
Exemptions come off the appraised value before the rate is applied. Because different taxing units grant different exemptions, you can end up with a different taxable value for each one.
Residence Homestead
If you own and occupy the home as your primary residence, school districts must exempt $140,000 of the appraised value from school taxes.4Texas Comptroller. Property Tax Exemptions Counties that levy farm-to-market or flood control taxes must also provide a $3,000 exemption.5State of Texas. Texas Tax Code 11.13 – Residence Homestead Any taxing unit may also adopt an optional homestead exemption of up to 20 percent of appraised value, with a $5,000 minimum.
To claim the exemption for the current tax year, file the application with the appraisal district between January 1 and April 30. Late applications are accepted up to two years after the deadline for most homeowners, and up to five years past the delinquency date for disabled veterans.6Texas Comptroller. Application for Residence Homestead Exemption You only apply once; the exemption stays in place until you move or your eligibility changes.
Age 65 or Older, or Disabled
Homeowners who are 65 or older, or who meet the Social Security Administration’s definition of disabled, receive an additional $60,000 school district exemption on top of the standard $140,000.4Texas Comptroller. Property Tax Exemptions Other taxing units may adopt a local option exemption of at least $3,000 for these homeowners.5State of Texas. Texas Tax Code 11.13 – Residence Homestead
Once you turn 65 or qualify as disabled, the school district also freezes the dollar amount of school taxes on your homestead at that year’s level. Even if the home’s value rises or the school rate goes up, your school taxes will not exceed the frozen amount unless you add improvements.
Disabled Veterans
Veterans with a service-connected disability rating from the U.S. Department of Veterans Affairs receive a partial exemption based on the severity of the disability:7Texas Veterans Commission. Property Tax Exemptions Available to Veterans per Disability Rating
- 10–29 percent rating: $5,000 exemption
- 30–49 percent rating: $7,500 exemption
- 50–69 percent rating: $10,000 exemption
- 70–99 percent rating: $12,000 exemption
- 100 percent rating: full exemption from all property taxes on a residence homestead
Step 3: Apply Each Taxing Unit’s Rate
Your property usually sits inside several overlapping taxing units, each setting its own rate independently. The common ones are:
- School districts
- Counties
- Cities or municipalities
- Special districts (hospital, water, community college, and similar)
Each unit holds public hearings in August and September to adopt a rate for the year, expressed as dollars per $100 of taxable value.8Texas Comptroller. Hearings Requirements A school district might adopt $1.05 per $100, a county $0.40, a city $0.55. The combined figure drives your total bill. Individual rates are published on your appraisal district’s website and on the Texas Comptroller’s Truth in Taxation portal.9Texas Comptroller. Tax Rate Calculation
For each unit, the math is the same: subtract that unit’s exemption from your appraised value, divide by 100, multiply by the unit’s rate. Add every unit’s result together for your total.
A Worked Example
Consider a home appraised at $350,000 with a standard residence homestead exemption in place. Assume a school rate of $1.05 per $100, a county rate of $0.40 per $100 with no county homestead exemption, and a city rate of $0.55 per $100 with a 20 percent optional homestead exemption.
School district: $350,000 minus the $140,000 school exemption leaves $210,000. Divide by 100 to get 2,100. Multiply by $1.05: $2,205.
County: the full $350,000 is taxable. Divide by 100 to get 3,500. Multiply by $0.40: $1,400.
City: the 20 percent optional exemption removes $70,000, leaving $280,000. Divide by 100 to get 2,800. Multiply by $0.55: $1,540.
Total estimated bill: $2,205 + $1,400 + $1,540 = $5,145. Your actual bill will depend on the specific rates and exemptions where you live, and on any special districts that also tax the property.
If the Appraised Value Looks Too High
Because the appraised value drives everything downstream, disputing it is the main way to lower the calculation itself. Protests are filed with the county’s Appraisal Review Board, and there is no fee.10Texas Comptroller. Appraisal Protests and Appeals The deadline is May 15, or 30 days after the appraisal district mails your Notice of Appraised Value, whichever is later. Useful evidence includes recent comparable sales, photos and repair estimates showing property condition, a recent closing statement if you bought the home, and data showing similar nearby properties appraised for less. Filing does not delay your obligation to pay the eventual bill; if you win a reduction, you receive a refund for the difference.
Key Dates for the Tax Year
The cycle repeats every year on the same rough schedule:3Texas Comptroller. Property Tax Law Deadlines
- April–May: appraisal districts mail Notices of Appraised Value
- August–September: taxing units adopt their official rates
- October: tax assessors mail the actual bills
- January 31: payment is due; unpaid amounts are delinquent on February 1
You can pay any time between October and January 31 without penalty. Once you have the appraisal notice in the spring and the adopted rates in the early fall, you have every input the formula needs and can estimate the bill before the assessor mails it.