Texas Property Tax Guide 2026: Rates, Exemptions & How to Protest

For the full state income tax comparison and relocation planning framework, see the State Taxes hub.

Texas has no state income tax — but property taxes have historically been among the highest in the nation. Note: This guide’s average rate and county-level figures were not independently re-verified against a live Texas Comptroller source this session; confirm current figures before relying on them for a major financial decision, as property tax rates and home values shift over time and different sources have cited figures ranging from roughly 1.6% to 1.8% for the statewide average.

Texas Property Tax Overview

Confirm the current average effective rate, median home value, and median annual property tax with the Texas Comptroller or Tax Foundation, as these figures were not independently re-verified this session. Texas uses property taxes as a primary revenue source because there’s no state income tax.

Texas Property Tax Rates by County (Confirm Current Figures)

Confirm current rates with each county’s appraisal district before relying on precise figures, as these change annually and were not independently re-verified this session:

Rates vary significantly based on city, school district, and special districts.

How Texas Property Tax Is Calculated

Property Tax = Appraised Value × Tax Rate

But with Homestead Exemption:

Property Tax = (Appraised Value - Exemptions) × Tax Rate

Illustrative example (not a specific current-rate calculation):

• Home appraised value: $350,000
• Homestead exemption: confirm current amount
• Taxable value: appraised value minus exemption
• Tax rate: confirm current local rate
• Annual tax: taxable value × tax rate

Texas Homestead Exemptions

Confirm current exemption amounts with the Texas Comptroller, as these were the last confirmed figures and were not independently re-verified this session:

How to Apply for Homestead Exemption

1. Be a Texas resident as of January 1
2. Own the property as your primary residence
3. File Form 50-114 with your county appraisal district
4. Deadline: April 30 (can file up to 2 years late)
5. Once approved: Automatically renews annually

Required documents:

• Texas driver’s license matching property address
• Vehicle registration showing property address
• One additional proof of residency

Over-65 and Disabled Homeowner Benefits

The tax ceiling means your school district taxes generally don’t increase (even if home value rises), once you qualify.

Property Tax Due Dates

Confirm exact current-year dates with your county appraisal district, as these can shift slightly year to year.

How to Protest Your Property Tax

Texas allows you to protest your appraised value annually:

Step 1: Review Your Appraisal

• Check for errors (square footage, bedrooms)
• Compare to similar properties
• Note any condition issues

Step 2: File a Protest

• Confirm current deadline with your county appraisal district (typically around mid-May or 30 days after your appraisal notice)
• File online, mail, or in person
• Form: Notice of Protest (Form 50-132)

Step 3: Gather Evidence

• Comparable sales in your area
• Photos of property issues
• Professional appraisal (optional)
• MLS listings of similar homes

Step 4: Informal Hearing

• Meet with appraisal district staff
• Many protests are resolved at this stage
• Negotiate a lower value

Step 5: ARB Hearing (if needed)

• Formal hearing with Appraisal Review Board
• Present evidence
• Decision is binding (can appeal to court)

Protest Tips

• Consider protesting every year — success rates have historically been meaningful
• Focus on comparable sales
• Look for errors in property description
• Consider hiring a property tax consultant (often contingency fee)

Property Tax Payment Options

Texas Property Tax Penalties

Confirm current penalty and interest schedules with your county tax office, as these were the last confirmed figures and were not independently re-verified this session. Penalties historically increase each month after the February 1 delinquency date, so pay on time or set up a payment plan.

Texas Tax Rate Components

Property tax bills include multiple overlapping jurisdictions (school district, city, county, hospital district, community college, and special districts) — confirm current typical rate ranges with the Texas Comptroller, as these were not independently re-verified this session.

Texas vs. Other States

Confirm current property tax and income tax rates for each comparison state before relying on this table:

Texas trades income tax for higher property tax.

Who Pays More in Texas?

Pay MORE in Texas if:

• Own an expensive home
• Income is low-moderate
• Don’t qualify for exemptions

Pay LESS in Texas if:

• High income (no income tax)
• Rent (no property tax directly)
• Own a modest home with exemptions

Texas Property Tax Caps

The 10% cap limits how fast your taxable value can rise (but market value can still increase, and the cap resets when you sell).

Bottom Line

Texas has no state income tax, but property taxes have historically been among the highest in the nation — confirm the current average rate before relying on a specific figure. A homestead exemption significantly reduces taxes for primary residences. Always file for homestead exemption and consider protesting your property valuation annually.

Written by WealthVieu

WealthVieu researches and writes data-driven personal finance guides using primary sources including the IRS, Bureau of Labor Statistics, Federal Reserve, and Census Bureau.