Texas property tax guide for homeowners

Texas property taxes can be a significant ongoing cost — often rivaling homeowners insurance — because rates are set locally and Texas ranks among the highest states for effective property tax rates. Understanding how taxes are calculated, what exemptions you qualify for, and when to pay can help you budget with confidence.

How much is property tax in Texas?

The Tax Foundation found that Texas was the seventh most expensive state for property taxes in 2023, with an effective tax rate of 1.36%. That means a home in Texas worth $350,000 could expect to pay about $4,760 a year in property taxes.

According to the same study, Texas ranked with the highest effective property tax rate among its neighbors, with Louisiana, Arkansas, New Mexico, and Oklahoma, all of which rank 25th or lower.

Your effective property tax rate is the average percentage of your home’s value that you pay in taxes. If you are looking to buy a house in Texas, be sure to budget for these taxes.

How do Texas property taxes vary by region?

Because property taxes are set in Texas at the local level, the effective property tax rates in Texas will vary depending on where in the state you live. The effective property tax rates ranged from 0.3329% in Crockett County to 2.0861% in El Paso County in 2023, according to the Tax Foundation.

Here are some of the effective tax rates and median taxes paid for some popular Texas counties.

How are Texas property taxes calculated?

Your bill equals your taxable value times your combined local rates. Here's the formula:

Property tax owed = (Taxable value ÷ 100) × Combined local tax rate

For example, if your taxable value is $300,000 and your combined rate is 1.80 (per $100), your estimated tax is ($300,000 ÷ 100) × 1.80 = $5,400.

Every property in Texas is part of a county appraisal district (CAD), and each year, starting on Jan. 1, they assess the value of each property in the state. The property appraiser considers factors such as the home's location, condition, size, and recent improvements, and homeowners must receive reasonable notice of any value increases.

Texas homeowners can contest their property’s assessed value by a county-specific deadline if there’s reasonable evidence it’s too high. The Texas Comptroller has guidelines for appealing protests, though you'll also want to check with your CAD.

Property taxes are based on the taxable value (market value less exemptions) of real property (land and permanent structures) and the rate for the homeowner’s local taxing units. Local taxing units (such as counties, school districts, and cities) determine the tax rates they’ll charge based on their annual budget. If your property has a taxable value of $300,000 and your combined local tax rate is 1%, your annual property tax will be $3,000.

Your property tax can increase if the value of your home increases or if your local taxing units increase their rates. If you are a Texas property owner, you can check your CAD’s website for more information on your property taxes. Many of them offer calculators that can help them estimate their Texas property tax bill.

Texas property tax exemptions and relief

Texas offers exemptions and relief programs that allow for reduced property tax bills or make smaller interest-free installments. Here are some of the most popular property tax exemptions in Texas:

• General residence homestead exemption
• Inherited residence homestead exemption
• Over 65 or disabled person exemption
• Disabled veteran or surviving spouse exemption
• Active-duty military and veterans exemption
• Surviving spouse of a first responder killed in the line of duty exemption

There also are ways to spread out or postpone your tax payments in specific circumstances.

• Quarterly payment plan. Qualifying homestead owners who are 65+ or disabled may pay property taxes in four interest-free installments through July 31. Check with your county tax assessor-collector for enrollment and due dates.
• Disaster installment payment plan. For taxable property in a governor-declared disaster area, eligible owners may pay in installments, often interest-free during the plan term.
• Disaster temporary exemption. A temporary exemption may apply to property at least 15% damaged in a declared disaster, with the exemption level tied to damage severity.

How to pay your property taxes in Texas

Texas homeowners typically receive their property tax bills starting in October and have until Jan. 31 of the following year to pay them. Many homeowners with a mortgage usually pay property taxes as part of their monthly mortgage payment, with the funds held in escrow until they are sent to the tax office. Those without mortgages usually pay the tax office directly, often online, over the phone, by mail, or at a local center.

What happens if you don’t pay on time?

Unpaid property taxes in Texas are typically considered delinquent as of Feb. 1. Late property tax payments are assessed penalties.

• Starting on Feb. 1, a 6% penalty and 1% monthly interest rate will apply through July 1.
• As of July 1, the penalty will increase to 12%, and the 1% monthly interest rate on unpaid taxes continues.
• On Jan. 1 of the following year, an automatic tax lien will be placed on the property if the taxes remain delinquent.

Foreclosure is a risk after just one year of delinquent property taxes, but the timeline can vary by county. Texas is not a tax deed state, but it’s important to not ignore a past-due property tax bill. If you are struggling with your property tax payments, you should contact your local CAD. A payment plan or temporary relief may be possible.

The bottom line: Budget for your Texas property tax bill

Property taxes are a significant ongoing cost for Texas homeowners, varying by location since there's no state property tax. These taxes are based on the assessed value of the property multiplied by the local tax rate. Texas homeowners can reduce their bills with various exemptions, and should pay their bill by Jan. 31 each year to avoid tax penalties.

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