A Texas property tax bill arrives by October 1 each year and must be paid before February 1 of the following year to avoid penalties and interest. The bill itemizes what you owe to every local taxing unit that levies against your property, shows the appraised and taxable value behind the calculation, and sets the delinquency date you need to beat.1State of Texas. Texas Tax Code TAX 31.01
What’s On the Bill
Texas law requires each bill to list the property’s appraised value, the taxable value after exemptions, the tax rate for every taxing unit involved, the total due, the due date, and the delinquency date.2Texas Comptroller of Public Accounts. Property Tax Bills It also shows each exemption applied to your property, the penalty and interest schedule for late payment, and contact information for your tax assessor-collector.
For real property, the bill must include a five-year history: appraised value, tax rate, dollar amount of taxes, and the percentage change year over year.1State of Texas. Texas Tax Code TAX 31.01 That history tells you something useful. If your taxes have climbed sharply while the rate held steady, rising appraised value is doing the work. If the rate jumped while your value stayed flat, a local government raised its rate. The distinction matters because the fix is different: protest the appraisal, or show up at a budget hearing.
Every bill also carries a unique property account number tied to your parcel. You need that number to look up the bill online, pay, or file a protest. If you don’t receive a paper bill, you’re still responsible for paying on time. Missed mail is one of the most common reasons people accidentally go delinquent, especially after buying or refinancing, so check your county tax office’s online portal rather than waiting on the mailbox. Physical copies are mailed by October 1 or as soon as practicable after that date.1State of Texas. Texas Tax Code TAX 31.01
How the Amount Is Calculated
Three variables set the bottom line: appraised value, exemptions, and the tax rates adopted by each local government.
Appraised Value and the 10 Percent Homestead Cap
Your county appraisal district sets market value each year. For a residence homestead, the appraised value on your bill can’t rise more than 10 percent above the prior year’s appraised value, plus the value of any new improvements.3State of Texas. Texas Tax Code TAX 23.23 In a hot market, your home’s market value might surge 25 percent in a year, but the appraised value used on your bill can only rise 10 percent. The gap tends to widen over time as long as you keep the homestead exemption in place.
The cap kicks in only after you’ve held the homestead exemption for one full year. In the first year you own and homestead a property, the appraisal district sets the value at full market value, and the 10 percent limit takes effect the following year.
Exemptions That Reduce Taxable Value
Exemptions subtract a fixed amount from your appraised value before the rate is applied. The biggest one for most homeowners is the school district exemption: every qualifying residence homestead gets $140,000 removed for school tax purposes.4State of Texas. Texas Tax Code Section 11.13 – Residence Homestead If your home is appraised at $350,000, you pay school taxes on $210,000.5Texas Comptroller of Public Accounts. Property Tax Exemptions
Homeowners 65 or older or with a qualifying disability receive an additional $60,000 school exemption on top of the general $140,000.4State of Texas. Texas Tax Code Section 11.13 – Residence Homestead Many cities and counties offer optional homestead exemptions, often a percentage of appraised value with a minimum of $5,000. These vary, so read your bill carefully and confirm every exemption you qualify for is listed.
The Rate and Final Math
Each taxing unit sets its own rate during public budget hearings. If a proposed rate exceeds the “no-new-revenue” rate, at least 60 percent of the governing body must vote in favor by record vote, and the unit must post a public notice stating exactly how much additional tax a $100,000 home would owe.6Texas Comptroller of Public Accounts. Hearings Requirements School districts generally adopt their rates before September 30.
The tax for each unit is your taxable value multiplied by its rate per $100. On a $210,000 school taxable value and a $1.05 rate, you owe $2,205 to that district. The bill totals every unit’s charge. A property with a $300,000 taxable value and a combined rate of $2.50 per $100 would owe $7,500.
Deadlines and Payment Methods
Taxes are due when you receive the bill and become delinquent if not paid before February 1.7State of Texas. Texas Tax Code TAX 31.02 – Delinquency Date One wrinkle matters: if your bill is mailed after January 10, the delinquency date is pushed back so you have at least 21 days to pay, and the adjusted date will be printed on the bill.8Texas Comptroller of Public Accounts. Paying Your Taxes
You can pay online, by mail, or in person at the county tax office. Credit card payments online typically carry a convenience fee around 2 percent; electronic check is often free or close to it. A USPS postmark counts as the payment date, so a January 31 postmark satisfies the deadline even if the envelope lands in February. In-person payment gets you an immediate receipt, which helps if a mortgage company or title search needs proof.
If your lender collects monthly escrow and pays the bill on your behalf, verify the tax office actually received payment. Escrow mistakes happen, and the property owner is on the hook for any unpaid balance.
Split and Quarterly Installments
Some taxing units allow you to split the bill in two: pay half before December 1, with the remaining half due before July 1 of the following year without penalty or interest.9State of Texas. Texas Tax Code TAX 31.03 Not every unit offers it. Call the tax office or check the bill. Miss the second installment and the unpaid balance immediately incurs a 12 percent penalty.10State of Texas. Texas Tax Code TAX 33.01 – Penalties and Interest
Homeowners who are 65 or older, qualify as disabled, or are disabled veterans with a homestead exemption can pay in four equal quarterly installments with no penalty, as long as they make the first payment and notify the tax office before the delinquency date.11State of Texas. Texas Tax Code TAX 31.031 When the delinquency date is February 1, the remaining payments are due before April 1, June 1, and August 1. A missed installment triggers a 6 percent penalty on the unpaid amount plus monthly interest, but still avoids the harsher standard schedule.
Penalties for Late Payment
The penalty structure escalates fast. On February 1, a delinquent bill picks up a 6 percent penalty plus 1 percent interest. Each additional month adds another 1 percent of each.10State of Texas. Texas Tax Code TAX 33.01 – Penalties and Interest The combined charges add up as follows:
- February 1: 6% penalty + 1% interest = 7%
- March 1: 7% penalty + 2% interest = 9%
- April 1: 8% penalty + 3% interest = 11%
- May 1: 9% penalty + 4% interest = 13%
- June 1: 10% penalty + 5% interest = 15%
- July 1: 12% penalty + 6% interest = 18%
On July 1, the penalty jumps straight to 12 percent regardless of how many months have passed. Interest continues accruing at 1 percent per month after July.
If the taxing unit has contracted with a collection attorney, an additional penalty covering attorney fees can be imposed on taxes still delinquent as of July 1. The collector must send notice at least 30 days before it kicks in.12State of Texas. Texas Tax Code TAX 33.07 The amount tracks the attorney contract and typically adds 15 to 20 percent of the total owed. A bill left unpaid past July can cost roughly a third more than the original tax.
If you’ve already gone delinquent, you may be able to negotiate a payment plan with the collector lasting up to 36 months. For homestead properties, the collector is required to offer an installment agreement if you haven’t entered one in the prior 24 months. Penalties stop accruing on the unpaid balance during the agreement as long as you keep paying. Miss a payment and penalties retroactively apply as if the agreement never existed.
Protesting the Appraised Value
If your property is overvalued or exemptions were applied incorrectly, you can protest. It costs nothing to file and is the single most effective way to lower a bill. The deadline is May 15, or 30 days after the appraisal district mails your notice of appraised value, whichever is later.13State of Texas. Texas Tax Code Section 41.44 – Notice of Protest
File the protest with your county’s appraisal district, not the tax office and not the Comptroller.14Texas Comptroller of Public Accounts. Property Owner’s Notice of Protest Common grounds include:
- Market value set higher than the property would actually sell for
- Unequal appraisal compared to similar properties in the area
- A homestead, over-65, disability, or other exemption denied or removed incorrectly
- Wrong physical description, such as square footage or lot size
Most appraisal districts offer an informal settlement conference first, where a staff appraiser reviews your evidence and may agree to a lower value. If that doesn’t resolve it, the case goes to the Appraisal Review Board, an independent panel that issues a binding determination. You can appear by phone or videoconference. Bring comparable sales, photos of condition issues, and any independent appraisals. Lead with your strongest evidence and keep it short.
Relief for Seniors and Disabled Homeowners
Once you turn 65 or qualify as disabled with a homestead exemption in place, your school district taxes are frozen at the amount owed in the year you qualified. The “tax ceiling” holds even if your value rises or the school rate increases, as long as you stay in the same homestead. It can transfer to a surviving spouse who is 55 or older. The freeze applies only to school taxes, though many county and city units offer their own optional freezes.
You can also defer all property tax collection on your homestead indefinitely if you are 65 or older, disabled, or a qualifying disabled veteran, by filing an affidavit with the appraisal district.15State of Texas. Texas Tax Code TAX 33.06 During the deferral, no taxing unit can foreclose or sue to collect. Interest accrues at 5 percent per year instead of 1 percent per month, and no penalties pile up.
The taxes don’t disappear. The lien stays on the property, and the full balance becomes due 181 days after the deferral ends, which typically happens when you sell, move out, or pass away. For a homeowner on a fixed income, the tool is powerful, but a long deferral compounds and reduces equity.
What Happens If You Never Pay
Delinquent property taxes create an automatic lien that takes priority over nearly every other claim on the property, including your mortgage. The lien no longer appears on consumer credit reports, but it remains a public record visible to title companies and lenders. Any sale or refinance has to satisfy it first.
If taxes stay unpaid long enough, the taxing unit can sue and eventually force a tax sale. The property goes to the highest bidder, and proceeds cover the delinquent taxes, penalties, interest, and legal costs.
Former owners have a right of redemption. For a residence homestead or agricultural land, the redemption period is two years from the date the purchaser’s deed is filed. During the first year, you must pay the purchaser everything they spent (bid price, recording fees, taxes paid) plus a 25 percent premium. During the second year, that premium doubles to 50 percent.16State of Texas. Texas Tax Code TAX 34.21 – Right of Redemption For all other property types, the window is 180 days under the same premium schedule. Once redemption expires, the new owner’s title becomes final.