If you own a home inside Waco city limits, your property tax bill is set by three main entities stacked together — McLennan County, the City of Waco, and Waco Independent School District — for a combined rate of roughly $2.12 per $100 of appraised value in the 2025 tax year. On a $250,000 home with no exemptions, that works out to about $5,291 a year. Property tax in Waco, TX is driven as much by what exemptions you claim and whether you protest your appraisal as by the headline rate itself, so the practical question is usually how to bring that number down.
Who Taxes Your Home and at What Rate
Your bill isn’t one tax from one government. Each jurisdiction sets its own rate against the same appraised value, and the rates add up. For the 2025 tax year, the three main entities for a home inside the city of Waco and within Waco ISD charge the following per $100 of appraised value:1McLennan County. Tax Rates
- McLennan County: $0.334805
- City of Waco: $0.755000
- Waco ISD: $1.026600
Not every property in the Waco area falls under Waco ISD. Depending on where the home sits, school taxes may instead go to Midway ISD ($0.936900), La Vega ISD ($1.255200), China Spring ISD ($0.981920), or one of more than a dozen other districts in McLennan County. Two homes with identical appraised values can carry noticeably different bills because of the school zone alone.1McLennan County. Tax Rates
The arithmetic is straightforward. Take your taxable value (appraised value minus exemptions for that jurisdiction), divide by 100, and multiply by the rate. A home appraised at $200,000 with a $140,000 school homestead exemption has a Waco ISD taxable value of $60,000, which produces about $616 owed to the school district that year.
How Your Appraised Value Is Set
The McLennan County Appraisal District values every residential and commercial property in the county. It operates independently from the entities that spend the money. Texas law requires property to be appraised at market value as of January 1 of each tax year.2State of Texas. Texas Tax Code 23.01 – Appraisals Generally
That January 1 snapshot matters. Changes to the property after that date don’t affect the current year’s bill. Homeowners usually receive a Notice of Appraised Value in April or May. If yours doesn’t arrive, call the appraisal district rather than assume the value held steady. The notice is also the trigger for a protest, so note the mailing date on the envelope.
Exemptions That Lower the Bill
Exemptions are the biggest lever most homeowners have. Applying is free, and the general deadline is before May 1 of the tax year, though late applications may be accepted up to two years after the deadline in some cases.3Texas Comptroller of Public Accounts. Property Tax Exemptions
General Residence Homestead
If you own the home and live in it as your primary residence, you qualify for the general homestead exemption. For school district taxes, it removes $140,000 from appraised value — an amount that rose from $100,000 starting with the 2025 tax year after Texas voters approved the change.3Texas Comptroller of Public Accounts. Property Tax Exemptions
Local taxing entities around Waco layer their own homestead exemptions on top of the school district amount for 2025:1McLennan County. Tax Rates
- McLennan County: 20% of appraised value, minimum $5,000
- City of Waco: 15% of appraised value, minimum $5,000
- Waco ISD: $140,000 (state-mandated)
To qualify, your Texas driver’s license or state ID must show the property address. The appraisal district uses that match to confirm you actually live there.
Over-65 and Disabled Homeowners
Homeowners who are 65 or older, or who are disabled, get an additional $10,000 off school district taxable value on top of the general homestead. Local entities around Waco add more:
- McLennan County: additional $35,000 off for over-65
- City of Waco: additional $50,000 off for over-65
- Waco ISD: total exemption of $200,000 for over-65 (compared to $140,000 for the general homestead)
Stacked together, these can wipe out most or all of a tax bill on a moderately valued home.1McLennan County. Tax Rates
Disabled Veterans
Veterans with a service-connected disability rating from the VA receive a flat-dollar exemption from every taxing entity, scaled to the rating: $5,000 at 10–29%, $7,500 at 30–49%, $10,000 at 50–69%, and $12,000 at 70–99%. A 100% rating produces a total exemption on the homestead — zero property tax from any jurisdiction.4State of Texas. Texas Tax Code 11.131 – Residence Homestead of 100 Percent or Totally Disabled Veteran File with the McLennan County Appraisal District and include the VA disability letter.5Texas Veterans Commission. Property Tax Exemptions Available to Veterans Per Disability Rating
The Over-65 School Tax Ceiling
Turning 65 does more than enlarge your exemption. Once you qualify for the over-65 homestead, your school district taxes are capped at whatever you owed in the first qualifying year. Rising appraisals and higher tax rates can’t push that number up. The ceiling can drop if the district lowers its rate, but it won’t climb back above the original.6State of Texas. Texas Tax Code 11.26 – Limitation of School Tax on Homesteads of Elderly or Disabled
Adding a room or similar improvement nudges the ceiling up only by the taxes attributable to that new construction. The same ceiling applies to disabled homeowners who qualify under the disability exemption. If the homeowner who established the ceiling dies, a surviving spouse keeps it in place as long as that spouse was at least 55 at the time of death and keeps living in the home.6State of Texas. Texas Tax Code 11.26 – Limitation of School Tax on Homesteads of Elderly or Disabled
When and How to Pay
The McLennan County Tax Assessor-Collector mails bills in October. Taxes are due on receipt and become delinquent if not paid before February 1. If January 31 falls on a weekend, the deadline shifts to the next regular business day.7McLennan County, TX. Tax Office
You can pay online through the county tax office portal using a credit card or electronic check. A convenience fee applies: 2.19% for credit cards or a flat $1.50 for e-checks, paid to the payment processor.8McLennan County Tax Office. McLennan County Tax Office Mail and in-person payment at the county tax office are also available.
Quarterly Installments for Seniors, Disabled, and Qualifying Veterans
Homeowners who are 65 or older, disabled, or qualifying disabled veterans can split the bill into four equal payments with no penalty or interest. The first payment is due before the February 1 delinquency date, along with written notice that you’ll use the installment plan. The others are due before April 1, June 1, and August 1. Miss any installment deadline and a 6% penalty hits the unpaid amount plus 1% monthly interest.9State of Texas. Texas Tax Code 31.031 – Installment Payments by Certain Taxpayers
What Happens If You Pay Late
Penalties and interest build quickly. On February 1, a delinquent balance picks up a 6% penalty plus 1% interest. Each additional month through June adds another 1% penalty and another 1% in interest. On July 1, the penalty jumps to a flat 12% regardless of how many months the tax has been delinquent, and 1% monthly interest keeps accruing on top. An additional collection penalty can apply once an attorney is retained to collect.10State of Texas. Texas Tax Code 33.01 – Penalties and Interest
A delinquent balance also attaches a tax lien to the property automatically, which blocks a clean sale or refinance. If the balance stays unpaid long enough, the taxing entities can sue to foreclose on the lien and force an auction. After a tax foreclosure sale, a homestead owner typically has two years to redeem the property by paying the full amount owed plus costs.
Deferral If You Can’t Pay
Homeowners who are 65 or older, disabled, or qualifying disabled veterans can defer property taxes indefinitely while living in the home. No payments are required during the deferral, interest accrues at 5% per year rather than the standard penalty rates, and no taxing unit can file a foreclosure suit while the deferral is in effect.11State of Texas. Texas Tax Code 33.06 – Deferred Collection of Taxes on Residence Homestead of Elderly or Disabled Person
The deferral ends when you move out or sell. At that point, the accumulated taxes plus accrued interest are due within 180 days. A surviving spouse who is 55 or older and still living in the home can continue the deferral. Filing the deferral affidavit early is what blocks foreclosure, so don’t wait until a lawsuit is threatened.11State of Texas. Texas Tax Code 33.06 – Deferred Collection of Taxes on Residence Homestead of Elderly or Disabled Person
Protesting Your Appraisal
If the value on your notice looks too high, you can challenge it. The strongest protests come down to evidence: recent sale prices of comparable homes, photos of damage or deferred maintenance, repair estimates, or an independent appraisal showing a lower value. Filing is free and doesn’t require an attorney, though property tax consultants work the Waco area.
Deadline
File by May 15 or within 30 days of the date the appraisal district mailed your Notice of Appraised Value, whichever is later. The 30-day clock runs from the mailing date on the notice, not the day you opened it.12Texas Comptroller of Public Accounts. Appraisal Protests and Appeals
Informal Meeting, Then the ARB
After you file, the appraisal district usually schedules an informal conference with a staff appraiser. Bring the comparable sales printouts, photos, and estimates. Many protests settle here at a value somewhere between your figure and the district’s. If no agreement is reached, the case goes to a formal hearing before the Appraisal Review Board, a panel of local citizens who hear both sides and issue a binding written order for that tax year.12Texas Comptroller of Public Accounts. Appraisal Protests and Appeals
If the ARB Decision Doesn’t Satisfy You
For homesteads at any value and other properties appraised at $5 million or less, you can request binding arbitration through the Texas Comptroller’s office. A deposit is required, refunded minus a $50 administrative fee if the arbitrator lands closer to your opinion of value.13Texas Comptroller of Public Accounts. Regular Binding Arbitration You can also file a petition for judicial review in district court within 60 days of receiving the ARB’s final order. Miss the 60-day window and the appeal for that year is barred.14State of Texas. Texas Tax Code 42.21 – Petition for Review
Federal Deduction for the Taxes You Pay
You can deduct property taxes paid in Waco on your federal return, but only if you itemize. For the 2026 tax year, the standard deduction is $32,200 for married couples filing jointly, $16,100 for single filers, and $24,150 for heads of household. If your itemized deductions don’t clear those thresholds, itemizing doesn’t help.15Internal Revenue Service. IRS Releases Tax Inflation Adjustments for Tax Year 2026
The federal state and local tax (SALT) deduction is also capped: $40,400 for most filers and $20,200 for married individuals filing separately in 2026. That cap covers all state and local taxes combined. Since Texas has no state income tax, a typical Waco homeowner paying several thousand in property taxes stays well under the limit. The cap tends to matter only if you own multiple properties or pay significant local taxes in other states.