Property taxes in Texas are assessed and collected at the local level — primarily by counties and municipalities — with rates varying significantly depending on where your home is located. The statewide average effective rate for 2025is 1.25%, meaning a homeowner with a $305,000 median-value home typically pays around $3,813 per year in property taxes. For a monthly perspective, that works out to roughly $318/month — a line item that should factor into every home purchase decision in Texas.
Texas uses a 100% assessment ratio for primary residential properties. Most states with a 100% ratio assess property at full market value — what the county believes your home would sell for — and apply a millage rate directly to that figure.
Available Exemptions in Texas
Homestead Exemption: $140,000 off the assessed value for school district taxes (raised by Proposition 13, Nov 2025 — previously $100K after Prop 4 in 2023). Additional optional exemptions from county/city. Also caps annual appraised value increases at 10%.
Seniors 65+ receive a $150,000 school district exemption (raised by Proposition 13, Nov 2025 — previously $110K) plus a school tax freeze so the tax amount cannot increase once you turn 65 on your homestead. Very valuable.
Disabled veterans: 10%–100% reduction based on disability rating. 100% disabled: full exemption from all property taxes. Surviving spouses also qualify.
What Makes Texas's Property Tax System Unique
Texas has no state income tax, so property taxes are the primary funding mechanism for local government and schools. Proposition 4 (Nov 2023) raised the school homestead exemption from $40K to $100K, saving average homeowners $1,300/year. Proposition 13 (Nov 2025) further raised it to $140K ($150K for seniors 65+), significantly reducing effective rates statewide. Travis County (Austin) and Harris County (Houston) still carry some of the highest local rates.
When Are Texas Property Taxes Due?
Texas property taxes are paid on a annual basis. Due dates: January 31 (penalty/interest after February 1). Missing a due date typically results in penalty interest (often 1–2% per month) and eventually tax liens, so it is important to calendar these dates well in advance — especially if you have a mortgage and your lender handles property tax through escrow (in which case they pay on your behalf from your escrow account).
How to Appeal Your Property Tax Assessment in Texas
If you believe your property has been over-assessed — which is surprisingly common, especially after rapid market changes — you have the right to appeal. File with your county Appraisal Review Board (ARB) by May 15 or within 30 days of receiving your appraisal notice. Informal hearings are held first; formal ARB hearings if needed.
To build a strong appeal, gather comparable sales (homes similar in size, age, and condition that sold recently for less than your assessed value), photos documenting property defects, and any independent appraisals you have. Many homeowners who appeal see their assessments reduced — and some jurisdictions allow free informal hearings before a formal appeal is required.
Property Tax Rates by Major Texas Cities
Within Texas, effective property tax rates vary significantly by city and county. Here are the major areas and what to expect:
- Houston— rates in this area may differ from the 1.25% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- San Antonio— rates in this area may differ from the 1.25% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- Dallas— rates in this area may differ from the 1.25% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- Austin— rates in this area may differ from the 1.25% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
- Fort Worth— rates in this area may differ from the 1.25% statewide average. Use the calculator above with your specific assessed value for a more accurate estimate.
Note: County rates within Texas can range from well below to well above the statewide average. Always verify the current mill rate with your county assessor's office.
Pro Tips for Texas Property Owners
- Apply for every exemption you qualify for — many homeowners leave money on the table by not filing for the homestead or senior exemption. Applications are typically annual or one-time, and deadlines are firm.
- Review your assessment notice every year. If the county's estimate of your home's market value seems too high relative to what similar homes are actually selling for, appeal it. Even a 10% reduction on a $400,000 assessment saves $400–$700/year at typical Texas rates.
- If you have a mortgage, confirm with your lender whether property taxes are paid via an escrow account. If so, ensure your escrow balance is adequate — under-funded escrow leads to an escrow shortage and a sudden increase in your monthly mortgage payment.
- Pay early if your state offers discounts. Some states (like Florida) give 1–4% discounts for early payment. On a $5,000 tax bill, a 4% early-payment discount saves $200 — for essentially zero work.
- Property taxes are generally deductible on your federal income tax return as part of the SALT deduction (state and local taxes), subject to the $10,000 cap introduced by the Tax Cuts and Jobs Act. For high-tax states, this cap is often a binding constraint.