Texas has no state income tax — but property taxes average 1.60%, among the highest in the nation.
Texas Property Tax Overview
| Metric | Value |
|---|---|
| Average effective rate | 1.60% |
| National average | 0.99% |
| Median home value | $238,000 |
| Median annual property tax | $3,808 |
Texas uses property taxes as a primary revenue source because there’s no state income tax.
Texas Property Tax Rates by County
| County | Average Rate | On $300K Home |
|---|---|---|
| Fort Bend | 2.23% | $6,690 |
| Brazoria | 2.17% | $6,510 |
| Harris (Houston) | 2.03% | $6,090 |
| Dallas | 1.93% | $5,790 |
| Tarrant (Fort Worth) | 1.86% | $5,580 |
| Collin (Plano) | 1.83% | $5,490 |
| Travis (Austin) | 1.68% | $5,040 |
| Bexar (San Antonio) | 1.67% | $5,010 |
| El Paso | 1.95% | $5,850 |
| Denton | 1.75% | $5,250 |
| Williamson | 1.65% | $4,950 |
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
Example:
- Home appraised value: $350,000
- Homestead exemption: $100,000
- Taxable value: $250,000
- Tax rate: 2.0%
- Annual tax: $5,000
Texas Homestead Exemptions
| Exemption Type | Amount |
|---|---|
| General homestead (school district) | $100,000 |
| City/county homestead | Varies ($5,000-$20,000) |
| Over 65 | Additional $10,000+ |
| Disabled | Additional $10,000+ |
| 100% disabled veteran | Full exemption |
| Surviving spouse (over 55) | Freeze + additional |
The $100,000 school district exemption was increased from $40,000 in 2023.
How to Apply for Homestead Exemption
- Be a Texas resident as of January 1
- Own the property as your primary residence
- File Form 50-114 with your county appraisal district
- Deadline: April 30 (can file up to 2 years late)
- 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
| Benefit | Details |
|---|---|
| Additional exemption | $10,000+ (varies by district) |
| Tax ceiling | Taxes frozen at current level |
| School tax ceiling | Frozen at 65 or disabled |
| Payment deferral | Can defer taxes until sale |
| Surviving spouse | Ceiling transfers if over 55 |
The tax ceiling means your school district taxes never increase (even if home value rises).
Property Tax Due Dates
| Date | Action |
|---|---|
| January 1 | Property values assessed |
| April 30 | Deadline to file exemptions |
| May 15 | Appraisals mailed to homeowners |
| May 15-June 1 | Deadline to file protest |
| October | Final tax bills mailed |
| January 31 | Full payment due |
| February 1 | Delinquency begins |
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
- Deadline: May 15 or 30 days after 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
- 85% of protests are resolved here
- 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
- Always protest — success rate is 60-70%
- Focus on comparable sales
- Look for errors in property description
- Consider hiring a property tax consultant (contingency fee)
Property Tax Payment Options
| Option | Details |
|---|---|
| Pay in full | By January 31 |
| Partial payments | Yes, accepted |
| Quarterly payments | Only for over-65/disabled |
| Escrow | Paid through mortgage |
| Online payment | Available in most counties |
Texas Property Tax Penalties
| Timing | Penalty + Interest |
|---|---|
| February 1 | 7% |
| March 1 | 9% |
| April 1 | 11% |
| May 1 | 13% |
| June 1 | 15% |
| July 1 | 18% + collection fees |
| After July 1 | 1% monthly interest |
Penalties add up quickly — pay on time or set up a payment plan.
Texas Tax Rate Components
Property tax bills include multiple overlapping jurisdictions:
| Entity | Typical Rate |
|---|---|
| School district | 0.90-1.20% |
| City | 0.40-0.70% |
| County | 0.30-0.50% |
| Hospital district | 0.10-0.30% |
| Community college | 0.10-0.20% |
| MUD/Special districts | 0.20-0.80% |
| Total | 1.60-2.50% |
Texas vs. Other States
| State | Property Tax | Income Tax |
|---|---|---|
| Texas | 1.60% | None |
| New Jersey | 2.21% | Up to 10.75% |
| Illinois | 2.08% | 4.95% flat |
| California | 0.71% | Up to 13.3% |
| Florida | 0.80% | None |
| Nevada | 0.55% | None |
Texas trades income tax for higher property tax.
Who Pays More in Texas?
Pay MORE in Texas if:
- Own 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 modest home with exemptions
Texas Property Tax Caps
| Cap Type | Limit |
|---|---|
| Homestead appraisal increase | 10% per year max |
| Non-homestead | No cap |
| Tax rate increase (voter approval) | 3.5% for schools, 2.5% for others |
The 10% cap limits how fast your taxable value can rise (but market value can still increase).
Bottom Line
Texas has no state income tax, but property taxes average 1.60% — among the highest in the nation. The $100,000 homestead exemption significantly reduces taxes for primary residences. Always file for homestead exemption and consider protesting your property valuation annually — success rates are high, and it can save hundreds or thousands of dollars.