The Texas Property Tax Code is the state law that tells local appraisal districts how to value your property and tells cities, counties, school districts, and special districts how to tax it. The state itself collects no property tax. What you owe depends on your property’s market value as of January 1, which exemptions you qualify for, and the combined rates of every local taxing unit whose boundaries cover your address. The code also gives you specific tools, chiefly exemptions, protests, deferrals, and installment plans, that can meaningfully lower what you pay if you use them before the deadlines run.
Who Actually Taxes Your Property
Property taxes in Texas are levied entirely by local entities.1Texas.gov. Property Tax Transparency in Texas A single home can owe taxes to four or five different units: the school district, the county, the city, and often a hospital, water, or community college district. Each sets its own rate and collects its own share. The county tax assessor-collector usually consolidates everything into one bill, so you write one check even though the money is split several ways.
You only pay the taxing units whose jurisdictional boundaries include your property. That’s why combined rates vary so sharply from one neighborhood to the next, even within the same county.
How Your Property Gets Valued
Every taxable property is appraised at its market value as of January 1 of the tax year.2State of Texas. Texas Tax Code Section 23.01 – Appraisals Generally That date is a hard snapshot. Improvements you add in February or hail damage in June generally don’t change the current year’s value.
Chapter 23 authorizes three valuation methods: the cost approach (replacement cost minus depreciation), the income approach (what the property could earn), and the market data approach (recent sales of comparable properties).2State of Texas. Texas Tax Code Section 23.01 – Appraisals Generally For most homes, the appraisal district uses market data, adjusting comparable sales for differences in size, age, and condition. Cost and income methods come up more often with commercial or unusual properties.
Your Notice of Appraised Value
If your value went up from the prior year, the appraisal district has to send you a written notice. Homestead notices go out by April 1 or as soon as practicable; other property notices by May 1.3State of Texas. Texas Tax Code Section 25.19 – Notice of Appraised Value The district also sends a notice if the property is newly added to the rolls or if an exemption was canceled.
One catch: the appraisal district’s board can choose not to send a notice when the increase is $1,000 or less.3State of Texas. Texas Tax Code Section 25.19 – Notice of Appraised Value If you haven’t heard anything, check your appraisal district’s website directly rather than assuming nothing changed.
Exemptions That Reduce Your Taxable Value
Exemptions are subtracted from your appraised value before the tax rate applies, so a bigger exemption means a smaller tax bill. The main ones:
Residence Homestead
School districts must exempt $140,000 of a homestead’s appraised value.4State of Texas. Texas Tax Code Section 11.13 – Residence Homestead Exemptions That figure was $25,000 in 2021, so if you haven’t looked at your exemption in a few years, your savings are much larger than you think. Cities, counties, and other units may adopt an optional homestead exemption of up to 20 percent of appraised value, with a $5,000 floor.5Texas Comptroller of Public Accounts. Property Tax Exemptions Not every local unit offers it. You have to apply through your appraisal district; the exemption is not automatic.
Age 65 or Older and Disabled
Homeowners who are 65 or older or who have a qualifying disability get an extra $10,000 school district exemption on top of the standard homestead amount.5Texas Comptroller of Public Accounts. Property Tax Exemptions More valuable than the dollar amount: once you qualify, your school district taxes are frozen at that year’s amount. Later increases in appraised value don’t raise your school tax bill. The ceiling transfers if you move to a new homestead within Texas, adjusted for any difference in the new home’s value.
Disabled Veterans
Veterans with a service-connected disability rating from the VA receive partial exemptions tied to the rating:
- 10 to 29 percent: up to $5,000 off appraised value
- 30 to 49 percent: up to $7,500
- 50 to 69 percent: up to $10,000
- 70 to 99 percent: up to $12,000
These apply across all taxing units, not just schools.6Texas Comptroller of Public Accounts. Disabled Veteran and Surviving Spouse Exemptions Frequently Asked Questions Veterans rated at 100 percent disabled or individually unemployable owe no property tax on their residence homestead.7State of Texas. Texas Tax Code 11.131 – Residence Homestead of 100 Percent Disabled Veteran
Temporary Disaster Damage
When the governor declares a disaster area, owners of damaged property can apply for a temporary exemption under Section 11.35. The property must be at least 15 percent damaged. The chief appraiser assigns a damage level from I (15 to 29 percent) through IV (total loss) that sets the exemption amount.8State of Texas. Texas Tax Code 11.35 – Temporary Exemption for Qualified Property Damaged by Disaster The deadline is 105 days after the disaster declaration.9Texas Comptroller of Public Accounts. Property Taxes in Disaster Areas and During Droughts Miss it and you lose the exemption for that year.
Deferrals and Installment Plans
Homeowners who are 65 or older, disabled, or qualifying disabled veterans can defer collection of their property taxes indefinitely while they live in the home. Filing an affidavit with the chief appraiser stops any collection lawsuit or tax sale on the homestead.10State of Texas. Texas Tax Code 33.06 – Deferred Collection of Taxes on Residence Homesteads The taxes keep accruing at 6 percent annual interest rather than the standard penalty schedule. The full balance comes due 181 days after you move out, sell, or die, and heirs inherit the liability.
The same group can also split their bill into four equal installments instead of paying it all by February 1. The first payment is due before the delinquency date; the remaining three are due before April 1, June 1, and August 1. Owners of property damaged in a governor-declared disaster can use the installment plan as well. Submit written notice of your intent with the first payment. Miss an installment and the standard 6 percent penalty plus 1 percent monthly interest kicks in on the unpaid portion.11Texas Comptroller of Public Accounts. Payment Options
Protesting Your Appraised Value
If you think your value is too high, that similar properties were appraised lower, or that an exemption was wrongly denied, you can protest. The deadline is May 15 or the 30th day after your notice of appraised value was delivered, whichever is later.12State of Texas. Texas Tax Code 41.44 – Notice of Protest
File Form 50-132, available on the Comptroller’s website and most appraisal district portals.13Texas Comptroller of Public Accounts. Property Owner’s Notice of Protest Your choice of grounds defines what you can argue. “Value is over market value” lets you present comparable sales. “Unequal appraisal” lets you argue that similar properties were valued lower. Many owners check both. Before the hearing, pull comparable sales from your neighborhood, take photos of any damage or deferred maintenance, and gather any independent appraisal you have from a refinance or sale.
After you file, the appraisal district usually schedules an informal meeting with a staff appraiser. Take it seriously. Many protests settle here when credible evidence is in front of someone with authority to reduce the value. Even if nothing settles, the meeting shows you the district’s evidence and reasoning before the formal hearing.
If the informal step fails, the case goes to the appraisal review board, a panel of independent citizens. Both sides present evidence and the board issues a written order with the final value, along with notice of your right to appeal.14State of Texas. Texas Tax Code 41.47 – Determination of Protest From there, you can appeal to district court or, for properties appraised at $5 million or less, pursue binding arbitration. Judicial appeal deadlines are tight and the process generally calls for a lawyer, so read the order carefully.
When Payment Is Due and What Late Costs You
Tax bills are mailed by October 1 or as soon after as practicable, and the full amount is due on receipt.15State of Texas. Texas Tax Code 31.01 – Tax Bills The standard delinquency date is February 1 of the following year. After that, the penalty and interest clock runs fast.
Penalty: 6 percent of the unpaid tax in the first month delinquent, plus another 1 percent each month through June. On July 1 the penalty jumps to a flat 12 percent. Interest runs separately at 1 percent per month from the delinquency date until paid.16State of Texas. Texas Tax Code 33.01 – Penalties and Interest Starting in July, the account may also be referred to an attorney, triggering an additional collection penalty of up to 20 percent. A $5,000 bill ignored through July can generate more than $1,600 in combined penalties and interest.
Keep ignoring the bill and the taxing unit gets a lien on the property. Eventually they can foreclose and sell. Texas taxing units have that authority and use it.
If You Own a Business, Don’t Forget the Rendition
If you own tangible personal property used to produce income (equipment, inventory, office furniture), you have to file an annual rendition with the appraisal district listing what you owned on January 1 and its estimated value. The deadline is April 15, with extensions available on request. This trips up small business owners who work from home or store equipment off-site.
A false rendition can be charged as a Class A misdemeanor or a state jail felony.17Texas Comptroller of Public Accounts. Business Personal Property Rendition of Taxable Property A late one draws a 10 percent penalty on the taxes owed. File on time with a good-faith estimate and correct it later if needed.