Yes, if you own real property in Texas, you owe annual property taxes on it. Texas has no state property tax and no state income tax, so counties, cities, school districts, and special districts rely on property taxes to fund schools, roads, and emergency services.1Texas Comptroller of Public Accounts. Property Tax Assistance The good news is that several exemptions and a homestead appraisal cap can bring the bill down significantly, and knowing the deadlines protects you from penalties that stack up fast.
How Your Texas Property Tax Bill Is Calculated
Two separate local decisions drive your bill. Your county’s central appraisal district (CAD) sets the market value of your property as of January 1 each year. Market value is the price the property would sell for in cash under current conditions, and the Texas Constitution requires the process to be equal and uniform across properties.2Texas Taxpayers and Research Association. Equal and Uniform Constitutional Safeguard of Fair Property Taxes
Then each taxing unit that covers your address — your county, city, school district, and sometimes a hospital district or community college — sets its own rate based on its budget. Your bill is the appraised value (minus any exemptions) multiplied by the combined rate of every unit that taxes your property. Because multiple entities each layer on their own rate, effective property tax rates in Texas tend to run well above the national average.
The 10% Homestead Appraisal Cap
If you own and live in the home, Tax Code Section 23.23 limits how quickly your appraised value can rise for tax purposes. The CAD cannot increase the appraised value of a residence homestead by more than 10% per year, plus the value of any new improvements you add.3State of Texas. Texas Tax Code TAX 23.23 The market value on the CAD’s books can still climb faster; the cap just limits how much of that value is taxed in any single year. In a hot market, the gap between market and capped value grows into a real ongoing benefit. Sell and buy a new place, though, and the cap resets at the new home’s full market value.
Exemptions That Lower What You Owe
Exemptions reduce your taxable value, and several can stack.
General Residence Homestead
If a property is your principal residence, every school district must exempt $140,000 of its appraised value from school taxes.4State of Texas. Texas Tax Code 11.13 – Residence Homestead Cities, counties, and special districts can adopt their own local-option homestead exemption of up to 20% of appraised value, with a $5,000 floor.5Texas Comptroller of Public Accounts. Property Tax Exemptions Not every unit adopts it, so total exemptions vary by address.
Over-65 and Disability
Homeowners 65 or older, or with a qualifying disability, get an additional $10,000 school-tax exemption on top of the general $140,000. Many cities and counties add their own extra exemption for these groups.
The larger benefit is the tax ceiling. Once you qualify, school district taxes are frozen at the dollar amount you paid in the first year of eligibility, and that ceiling holds even if values or rates rise, for as long as you own and live in the home.6State of Texas. Texas Tax Code TAX 11.26 – Limitation of School Tax Counties and cities that adopt an over-65 or disability exemption must also impose a similar ceiling on their portion.
Disabled Veterans
Veterans with a service-connected disability from the VA get an exemption that scales with their rating:7State of Texas. Texas Tax Code TAX 11.22 – Disabled Veterans
- 10% to 29% disability: up to $5,000 off assessed value
- 30% to 49%: up to $7,500
- 50% to 69%: up to $10,000
- 70% or higher: up to $12,000
A veteran rated 100% disabled by the VA, or determined individually unemployable, qualifies for a full exemption on the total appraised value of their homestead and owes zero property taxes on that home.8Texas Comptroller of Public Accounts. 100 Percent Disabled Veteran and Surviving Spouse Frequently Asked Questions A surviving spouse may qualify to keep that exemption.
How to Actually Claim an Exemption
Exemptions are not automatic. File Form 50-114 with the appraisal district in the county where your property is located.5Texas Comptroller of Public Accounts. Property Tax Exemptions For the general homestead, expect to show that the property is your principal residence, usually with a Texas driver’s license or state ID matching the property address.9Texas Comptroller of Public Accounts. Residence Homestead Exemption Application Form 50-114 Over-65, disability, and veteran exemptions need documentation of age, disability status, or VA rating.
The general filing deadline is before May 1 of the tax year you’re claiming.5Texas Comptroller of Public Accounts. Property Tax Exemptions Miss it and you can still file a late application up to two years after the taxes on the property became delinquent.10State of Texas. Texas Tax Code TAX 11.431 A late filing can produce a refund on taxes already overpaid, so it’s worth doing.
Protesting Your Appraised Value
If the CAD’s value looks too high, you can protest. The process begins with the Notice of Appraised Value the district mails you. File a Notice of Protest (Form 50-132) with the Appraisal Review Board by May 15 or 30 days after the notice was mailed, whichever is later.11Texas Comptroller of Public Accounts. Appraisal Protests and Appeals
Most districts start with an informal meeting with a staff appraiser, and most protests get resolved there. Bring recent sale prices of comparable homes, photos of condition issues that hurt value, and any independent appraisal you have. If the informal meeting doesn’t settle it, the case moves to a formal hearing before the ARB, whose determination is binding for that tax year. If the ARB rules against you and you still believe the value is wrong, further appeals to state district court, binding arbitration, or the State Office of Administrative Hearings are available with their own deadlines and fees.
When and How to Pay
Bills usually go out in October or November, and payment is due by January 31. If that date falls on a weekend, the deadline shifts to the following Monday.12Texas Comptroller of Public Accounts. Paying Your Taxes County tax offices accept payment in person, by mail, or online, and most take credit cards and e-checks.
If you have a mortgage, your servicer likely escrows property taxes as part of your monthly payment and pays the tax office on your behalf. Confirm each year that the payment actually went through. You remain legally responsible for the debt if the servicer misses it.
Installment Plans for Qualifying Homeowners
Homeowners who are 65 or older, disabled, or disabled veterans can split their property taxes into four equal installments with no penalty or interest. The first installment, along with a written notice of intent to use the plan, must be submitted before the February 1 delinquency date. The remaining payments are due before April 1, June 1, and August 1.13Texas Comptroller of Public Accounts. Payment Options Miss any installment and the unpaid amount becomes delinquent with the standard penalties.
Tax Deferral for Seniors and Disabled Homeowners
If you’re 65 or older or disabled, you can defer property taxes on your homestead entirely for as long as you own and live there. Deferral does not forgive the taxes. They keep accruing at 5% annual interest, and the full balance comes due when the property is sold or you no longer occupy it. Penalties and collection fees begin if the balance isn’t paid within 180 days of losing eligibility. Deferral can be a legitimate option on a fixed income, but it builds a debt that heirs or future buyers will need to deal with.
What Happens If You Don’t Pay
Taxes unpaid after January 31 become delinquent on February 1, and the penalty and interest schedule set by state law kicks in immediately. The tax office cannot waive it:14State of Texas. Texas Tax Code TAX 33.01 – Penalties and Interest
- February 1: 6% penalty plus 1% interest added to the unpaid balance
- March through June: an additional 1% penalty accrues each month
- July 1: the total penalty jumps to a flat 12%, regardless of how many months delinquent
- Interest: 1% per month, uncapped, for as long as the balance remains unpaid
Attorney’s fees and court costs are added once the taxing units refer the account for collection or file suit. A debt that starts at a few hundred dollars can grow substantially inside a single year.12Texas Comptroller of Public Accounts. Paying Your Taxes
The worst outcome is losing the property. Every property tax debt creates a lien, and taxing units can go to court to foreclose. If a judge grants the order, the property is sold at public auction. Sale proceeds pay the tax debt first, with anything left going to the former owner, but tax-sale properties often bring far less than market value, so owners typically lose meaningful equity.
Deducting Texas Property Taxes on Your Federal Return
Because Texas has no state income tax, property taxes are usually the biggest piece of any federal state and local tax (SALT) deduction you claim. Under the One Big Beautiful Bill Act signed in 2025, the SALT cap rose from $10,000 to $40,000 for the 2025 tax year and increases 1% each year through 2029. For 2026, the cap is approximately $40,400 for most filers and $20,200 for married couples filing separately. The deduction phases down for filers with adjusted gross income above $500,000, eventually returning to $10,000 for the highest earners.
To claim it, you have to itemize instead of taking the standard deduction. For many Texas homeowners, property taxes alone won’t clear the standard deduction, so run the numbers both ways. Significant mortgage interest or charitable giving on top of property taxes is what usually tips itemizing into the better choice.