Yes, there are property taxes in Texas, but they are levied entirely by local governments rather than the state. Texas has no state property tax and no state income tax, so cities, counties, school districts, and special-purpose districts rely on property taxes to pay for schools, roads, law enforcement, and other services.1Texas Comptroller. Property Tax System Basics What you owe each year depends on the appraised value of your property, the exemptions you qualify for, and the combined rates set by every taxing unit whose boundaries include your address.
Who Actually Taxes Your Property
The state government receives none of the money.1Texas Comptroller. Property Tax System Basics Your bill is the sum of rates adopted independently by several overlapping local entities:
- School districts, usually the largest single share of the bill.
- County governments, which fund roads, courts, and county law enforcement.
- Cities, which fund municipal streets, police, fire, and parks.
- Special-purpose districts such as municipal utility districts, hospital districts, and junior college districts.
Each unit adopts an annual budget and sets a tax rate expressed per $100 of taxable value.2Texas Comptroller of Public Accounts. Tax Rate Calculation Because those rates are set separately, two houses on opposite sides of a district line can carry very different bills. The Texas Comptroller publishes rate information so you can see what each entity is proposing before it takes effect.3Texas.gov. Property Tax Transparency in Texas
Under the Texas Tax Code, all real property and tangible personal property is taxable unless a specific exemption applies. Real property covers land and permanent structures. Everyday personal belongings not used in business, such as your car, furniture, and clothing, are exempt. Business equipment, inventory, and supplies are not.
How Your Property Gets Valued
Before any rate can be applied, your property needs a value. The county appraisal district assigns one to every property inside its boundaries, and that value must reflect market value as of January 1 of the tax year.4Texas Comptroller of Public Accounts. Property Tax Law Deadlines Appraisers work in bulk, using sales data, construction costs, and income data to value large groups of similar properties consistently.
If your appraised value goes up from the prior year, the appraisal district has to send you a notice. For a residence homestead, that notice must be mailed by April 1. For other property, the deadline is May 1 or as soon as practical afterward.5Texas Comptroller. Appraisal Protests and Appeals That notice is your window to act if the number looks wrong.
Exemptions That Lower Your Bill
Exemptions reduce the taxable value the tax rates get applied to. The general deadline to file an exemption application with your county appraisal district is before May 1 of the tax year.6Texas Comptroller of Public Accounts. Property Tax Exemptions
Residence Homestead Exemption
The homestead exemption is the biggest one most Texans qualify for. Under Texas Tax Code Section 11.13, school districts must exempt $140,000 of a qualifying home’s appraised value.7State of Texas. Texas Tax Code Chapter 11 – Taxable Property and Exemptions Cities and counties may layer on additional exemptions, often a percentage of value, though the amounts vary by jurisdiction. To qualify, you must own the home and use it as your primary residence on January 1 of the tax year.
The 10 Percent Appraisal Cap
Once you have a homestead exemption, Texas Tax Code Section 23.23 caps how fast your home’s appraised value can rise. The appraisal district cannot increase the appraised value by more than 10 percent per year, plus the value of any new improvements.8State of Texas. Texas Tax Code Chapter 23 – Appraisal Methods and Procedures The cap protects you from sudden jumps when the local market surges. It applies to value only, not rates, so your bill can still climb if a taxing unit raises its rate.
Age 65 or Older and Disability
Homeowners who are 65 or older, or who have a qualifying disability, get an additional $10,000 exemption on the homestead for school district taxes. They also receive a school tax ceiling: once the school portion of the bill is set in the year they qualify, it cannot go higher unless they improve the home. Many cities and counties offer similar freezes, though not all do.
Disabled Veterans
Texas veterans with a service-connected disability qualify for exemptions tied to their VA disability rating:9Texas Veterans Commission. Property Tax Exemptions Available to Veterans Per Disability Rating
- 100 percent rating: full exemption from property taxes on the residence homestead.10Comptroller of Public Accounts. 100 Percent Disabled Veteran and Surviving Spouse Frequently Asked Questions
- 70 to 99 percent: $12,000 exemption.
- 50 to 69 percent: $10,000 exemption.
- 30 to 49 percent: $7,500 exemption.
- 10 to 29 percent: $5,000 exemption.
Veterans rated below 100 percent may apply the exemption to any property they own, not only a homestead. Surviving spouses of veterans who qualified for the 100 percent exemption may be eligible to keep it.
Agricultural and Open-Space Land
Land used primarily for agriculture, timber, or wildlife management may qualify for a special productivity appraisal instead of a market-value appraisal, which usually cuts the taxable value sharply.11Texas Comptroller of Public Accounts. Agricultural, Timberland and Wildlife Management Use Special Appraisal The land must currently be devoted principally to agricultural use at the intensity generally accepted in the area, and it must have been used for agriculture or timber for at least five of the past seven years. Qualifying uses include cultivating crops, raising livestock or poultry, and raising certain exotic animals for commercial value. Wildlife management can also qualify if the land was previously under agricultural or timber appraisal and is being actively managed for indigenous species.
There’s a catch on the back end. If land under productivity valuation is converted to a non-qualifying use, such as when a rancher sells to a developer, the owner owes rollback taxes covering the previous three years. The rollback bill equals the difference between what was paid on the productivity value and what would have been owed at full market value, plus 1 percent interest per month from the date each year’s taxes originally would have been due.12Texas Comptroller. Land Use Tax Bills Anyone buying or selling ag land should price that risk in.
When You Pay, and What Happens If You Don’t
Tax bills go out through October. You have until January 31 to pay without penalty. Anything unpaid on February 1 is delinquent.13Texas Comptroller of Public Accounts. Paying Your Taxes If January 31 falls on a weekend or holiday, the deadline shifts to the next business day.
Once you’re delinquent, penalties and interest start immediately and stack:14Texas Comptroller of Public Accounts. Penalty Tax Bills
- February: 6 percent penalty plus 1 percent interest, for 7 percent total.
- March through June: the penalty rises by 1 percent each month, topping out at 10 percent in June, while interest adds another 1 percent per month.
- July 1: penalty jumps to 12 percent and holds there. An additional penalty of up to 20 percent may be added for attorney collection fees if the account has been referred for collection.
- After July: the 12 percent penalty stays put, but interest keeps running at 1 percent per month until the balance is paid.
A full year of delinquency can add roughly 24 percent or more to the original bill before attorney fees.
Unpaid taxes create an automatic lien on the property. A taxing unit can sue to foreclose, and if the judgment goes unpaid, the property is sold at public auction after written notice to the owner. Property that doesn’t sell reverts to the county, which may resell it later.
Protesting Your Appraisal
Filing a protest is free, and it’s the most direct way most Texas owners lower their bill. The deadline is May 15 or 30 days after the appraisal district mails your notice of appraised value, whichever is later.5Texas Comptroller. Appraisal Protests and Appeals
Most appraisal districts start with an informal meeting. You bring your evidence, whether that’s recent comparable sales, photos of damage, or an independent appraisal, and talk it through with an appraiser. If they agree with your number, you may get a settlement offer without a formal hearing. Turning that offer down doesn’t cost you your hearing rights.
If the informal step doesn’t resolve it, you go to a formal hearing before the Appraisal Review Board. You can choose to present your evidence first or second. Both sides may put on documents, call witnesses, and cross-examine. The ARB can only consider evidence actually introduced at the hearing, so anything the appraisal district holds internally but never puts on the record can’t be used against you. If you requested information from the appraisal district and it wasn’t delivered at least 14 days before the hearing, that evidence has to be excluded.15Texas Comptroller of Public Accounts. Model Hearing Procedures for Appraisal Review Boards
If the ARB’s determination still doesn’t work for you, you can appeal to state district court or, for properties valued at $5 million or less, pursue binding arbitration.
Extra Options for Owners 65 or Older or with a Disability
On top of the added exemption and school tax ceiling, qualifying homeowners can defer their property taxes entirely, postponing payment for as long as they own and live in the home. Interest accrues at 5 percent per year on the deferred amount, and everything comes due when the home is sold or the owner moves out. As a less drastic option, qualifying owners can pay their taxes in four equal installments instead of a single lump sum by notifying the tax office before the delinquency date.4Texas Comptroller of Public Accounts. Property Tax Law Deadlines Both routes can keep a foreclosure off the table when a fixed income and a rising bill collide.