Property Tax

Property Tax in Texas: Complete Guide 2026

Updated 2026-03-10

Data Notice: Figures, rates, and statistics cited in this article are based on the most recent available data at time of writing and may reflect projections or prior-year figures. Always verify current numbers with official sources before making financial, medical, or educational decisions.

Property Tax in Texas: Complete Guide 2026

Tax information is for educational purposes only and does not constitute tax advice. Consult a licensed tax professional for your specific situation.

Texas has no state income tax, which makes property tax the primary source of revenue for local governments, school districts, and special districts. As a result, Texas property tax rates are among the highest in the nation. Understanding how the system works — and what exemptions are available — is essential for every Texas homeowner.

Texas Property Tax Rates (2026)

MetricRate / Amount
Average effective rate~1.60%
National average effective rate~0.99%
Median home value~$305,000
Median annual property tax~$4,880

Texas has no state-level property tax. All property taxes are levied by local taxing entities — counties, cities, school districts, and special districts. The total rate is the sum of all overlapping jurisdictions.

Property Tax by Select County

CountyAvg. Effective RateMedian Tax Paid
Harris (Houston)~1.82%~$4,600
Dallas~1.69%~$4,700
Tarrant (Fort Worth)~1.78%~$4,900
Bexar (San Antonio)~1.68%~$3,400
Travis (Austin)~1.47%~$6,800
Collin (Plano)~1.62%~$6,300
Fort Bend~1.89%~$6,500
Williamson~1.58%~$5,200

How Texas Property Tax Works

Assessment and Appraisal

Each county has a central appraisal district that determines property values annually. Properties are appraised at market value as of January 1 of each tax year.

Key rules:

  • Homestead cap: For homesteads, the appraised value cannot increase by more than 10% per year (regardless of market appreciation). This cap applies after exemptions.
  • Non-homestead properties: No cap on annual appraisal increases. Commercial and investment properties can see large year-over-year increases.
  • Appraisal review boards (ARBs): Property owners can protest their appraised value before the ARB each year. Protests are free to file and frequently result in reductions.

Tax Rate Components

A typical Texas homeowner’s total tax rate is the sum of rates from multiple entities:

Taxing EntityTypical Rate Range
School district0.80% — 1.20%
County0.30% — 0.60%
City0.30% — 0.70%
Special districts (MUD, ESD, etc.)0.10% — 0.50%
Total~1.50% — 3.00%

Exemptions and Deductions

  • General Homestead Exemption: Reduces the taxable value of a primary residence by $100,000 for school district taxes (increased from $40,000 in 2023 under Senate Bill 2). Cities and counties may offer additional homestead exemptions.
  • Over-65 / Disabled Exemption: An additional $10,000 reduction in school district taxable value, plus a tax ceiling that freezes school district taxes at the amount owed the year the homeowner turns 65 or becomes disabled.
  • Disabled Veteran Exemption: Ranges from $5,000 to $12,000 based on disability rating. Veterans with 100% disability receive a full exemption from property taxes.
  • Agricultural Valuation (Ag Exemption): Land used for agriculture, timber, or wildlife management is appraised based on productive capacity rather than market value, which can reduce the assessed value by 90% or more.
  • Tax Deferral for Seniors: Homeowners 65+ can defer property taxes on their homestead. Deferred taxes accrue 5% annual interest and become due when the home is sold.

Comparison to National Average

MetricTexasNational Average
Average effective rate~1.60%~0.99%
Median annual tax paid~$4,880~$2,700
Assessment basisMarket value (annual)Varies by state
Homestead cap10%/year increaseVaries

Texas property taxes run approximately 60% higher than the national average in effective rate terms. The absence of a state income tax means local property taxes bear a larger share of the public funding burden.

Tips for Minimizing Texas Property Tax

  1. Protest your appraisal every year. In many counties, over 50% of homeowners who protest receive a reduction. You can protest online, by mail, or in person. The deadline is typically May 15 or 30 days after your appraisal notice, whichever is later.
  2. File for every exemption you qualify for. The homestead exemption alone saves approximately $1,000—$1,200/year in school taxes for a typical homeowner. Make sure to file promptly after purchasing a home.
  3. Check for the over-65 freeze. If you or your spouse are 65+, the school district tax ceiling can save thousands over time as rates and values increase around you.
  4. Monitor for errors in your appraisal. Check square footage, room count, and property characteristics on the appraisal district website. Errors in the property record are common and can inflate your assessed value.
  5. Consider agricultural valuation. If you own rural land (even 10+ acres), qualifying for ag use valuation can dramatically reduce your tax bill. Some counties accept wildlife management plans for smaller parcels.
  6. Understand MUD and special district taxes. Properties in Municipal Utility Districts or other special districts can carry significantly higher total rates. Factor this in before purchasing.

Key Takeaways

  • Texas has no state income tax, but property tax rates averaging ~1.60% are among the highest in the country
  • The $100,000 school homestead exemption (under SB 2) provides meaningful relief for primary residences
  • Annual appraisal protests are free, widely successful, and one of the most effective tools for reducing your tax bill
  • The 10% homestead cap protects against rapid appraisal increases, but non-homestead properties have no such protection
  • Over-65 and disabled veteran exemptions provide substantial additional savings
  • Total tax rates vary significantly by location due to overlapping school, city, county, and special district levies

Next Steps