Texas Property Tax Guide 2025

Texas has no state income tax, which means property taxes are the primary way local governments fund services. The average effective rate is 1.60% — well above the national average. The typical Texas homeowner pays about $4,400/year.

How TX Property Taxes Work

Texas property taxes are administered at the county level by Central Appraisal Districts (CADs). Each CAD determines the market value of every property in the county as of January 1 each year. Then multiple taxing entities — county, city, school district, special districts — each set their own tax rate.

Your total tax bill = (Appraised Value − Exemptions) × Combined Tax Rate. Since there's no state income tax, Texas relies heavily on property taxes, making exemptions and protests especially important.

Average Property Tax Rates by Major County

The Homestead Exemption

The homestead exemption is the most important tax benefit for Texas homeowners. As of 2023, it provides a $100,000 reduction in appraised value for school district taxes.

• General Homestead: $100,000 off for school taxes. Many cities and counties offer an additional 20% exemption.
• Over-65 Homestead: Additional $10,000 off school taxes, plus a tax ceiling — your school taxes can never go above what you paid the year you turned 65 or qualified.
• Disabled Person: Same benefits as Over-65.
• Disabled Veteran: Partial to full exemption based on disability rating (100% disabled = total exemption).

Apply by April 30 at your county appraisal district. You only need to apply once — it stays on file until you sell or move.

How to Protest Your Appraisal

Texas has one of the most homeowner-friendly protest systems in the country. About 50% of protests result in a reduction. Here's how:

1. Review your Notice of Appraised Value — Mailed by April 15-May 1 each year. Check for errors in square footage, lot size, or property description.
2. File a protest by May 15 (or 30 days after the notice, whichever is later). File online at your CAD's website.
3. Gather evidence: Recent comparable sales, photos of property issues, independent appraisals, or repair estimates.
4. Informal hearing: Most CADs offer an informal meeting first. Many cases are settled here with a 5-15% reduction.
5. ARB hearing: If the informal fails, go to the Appraisal Review Board. Present your evidence — it's informal, no lawyer needed.
6. Binding arbitration or district court: For properties under $5M, binding arbitration costs $550 and is often worth it for larger reductions.

Texas Property Tax Reform (2023-2024)

Recent legislative changes have significantly impacted Texas property taxes:

• Proposition 4 (2023): Increased the homestead exemption from $40,000 to $100,000 for school taxes.
• School tax rate compression: The state is buying down school tax rates, saving the average homeowner $1,200+/year.
• 20% appraisal cap for non-homestead: New 3-year pilot limiting increases on commercial and investment properties.
• Circuit breaker pilot: Property tax relief for homeowners whose taxes exceed a certain percentage of income.

Payment Options

• Pay in full: Due January 31. Penalties start February 1 (6%) and increase monthly up to 12% plus interest.
• Split payment: Some counties allow half by November 30, half by June 30.
• Over-65/Disabled installment plan: Pay quarterly with no penalties.
• Escrow: Most mortgage companies collect monthly and pay on your behalf.

Important Dates

• January 1: Property values determined as of this date
• April 15 – May 1: Notices of Appraised Value mailed
• April 30: Deadline to file homestead exemption for current year
• May 15: Deadline to file protest (or 30 days after notice)
• July – September: ARB hearings
• October: Tax bills mailed
• January 31: Payment deadline