Texas property tax is a local tax set by your county, school district, and city, not the state
Texas has no state income tax, but it does have property tax. The difference is that your property tax bill comes from your local government — your county, school district, and city or town — not from the state. Each of these bodies sets its own tax rate on the property you own. That is why a house worth the same amount can have very different tax bills depending on where it sits.
Your property tax pays for schools, roads, emergency services, and local government operations. The tax is based on the appraised value of your property, which is set by your county appraisal district, not by what you paid for it or what you could sell it for today.
If you own a home, land, or commercial property in Texas, you will receive a property tax bill once a year. The bill shows the appraised value, the tax rate, and the total amount you owe. Most people pay this bill in two installments — one in October and one in January.
Key Takeaways
- Property tax in Texas is set by your county, school district, and city or town, each with its own tax rate.
- The tax is based on the appraised value of your property, which your county appraisal district determines each year.
- Texas has no state property tax — all property tax revenue goes to local government and schools.
- Property tax bills are typically due in two payments: October and January of each year.
- You can challenge your appraised value if you believe it is too high, and the important date to do so is usually in May.
How the appraised value is determined
Your county appraisal district sends an appraiser to look at your property or uses information about similar properties in your area to set an appraised value. This value is not the same as the price you paid, the price you could sell it for, or the price a bank says it is worth. It is the appraiser's estimate of what your property is worth for tax purposes.
The appraisal district looks at factors like the size of your house, the condition of the building, the lot size, recent sales of similar properties nearby, and any improvements you have made. They update the appraised value each year, which means your tax bill can go up or down even if you do not sell the property.
You receive a notice of appraised value in the mail, usually in April or May. This notice tells you what the appraisal district thinks your property is worth. If you disagree with this value, you have the right to challenge it through a process called a protest.
The three parts of your property tax bill
Your property tax bill is made up of three separate tax rates, each set by a different local body. Understanding what each part pays for can help you see where your money goes.
| Tax Component | Set By | Pays For |
|---|---|---|
| School tax | School district | Public schools, teacher salaries, school buildings |
| County tax | County commissioners | Sheriff, courts, roads, county services |
| City or town tax | City or town council | Police, fire, water, streets, parks |
The school district tax is usually the largest part of your bill. If you live outside a city or town, you will not have a city tax, only county and school taxes. Each body publishes its tax rate before the year begins, so you can see what rate applies to your property.
Homestead exemptions and other reductions
If you own and live in your home as your primary residence, you may be able to claim a homestead exemption. This exemption reduces the appraised value used to calculate your school tax, which lowers your bill. The amount of the reduction varies by school district — some reduce the value by 20 percent, others by a fixed dollar amount.
To claim a homestead exemption, you file a form with your county appraisal district. The important date is usually April 30 of the year you want the exemption to take effect. You only have to file once; the exemption continues each year as long as you still own and live in the home.
Other groups may also receive reductions. Disabled people, veterans, and people over 65 may be able to claim additional exemptions or deferrals. Some agricultural land and open space also receives special tax treatment. Check with your county appraisal district to see what reductions you might be able to use.
How to challenge your appraised value
If you believe your appraised value is too high, you can file a protest with your county appraisal district. The important date to protest is usually May 15, though it can vary by county. You do not need a lawyer or a professional appraiser to file a protest.
To protest, you fill out a form and send it to the appraisal district. You can also include evidence that supports your position — photos of damage to the property, a recent appraisal from a bank, or information about similar properties that sold for less. The appraisal district will review your protest and may adjust the value or hold a hearing where you can present your case.
If you disagree with the appraisal district's decision, you can appeal to the Appraisal Review Board, which is a separate panel that hears disputes. If you still disagree after that, you can take the case to court, though this is rare and usually only happens in cases involving large commercial properties.
When and how to pay your property tax bill
Your property tax bill is due in two parts. The first installment is due by November 30, and the second is due by January 31. If you pay late, you will owe a penalty and interest. The penalty starts at 5 percent and increases the longer you wait.
You can pay your bill by mail, online through your county tax assessor's website, in person at the tax office, or sometimes through an automatic bank payment. If you have a mortgage, your lender may require you to pay property tax through an escrow account, which means the lender collects the money from you each month and pays the bill on your behalf.
If you cannot pay your full bill, contact your county tax assessor's office to ask about payment plans. Some counties offer the option to pay in smaller monthly amounts rather than in two large installments.
Frequently Asked Questions
Can my property tax bill go down if my home loses value?
Yes. If your home's appraised value decreases, your tax bill will go down the following year. However, the appraisal district does not automatically lower your value just because the market dropped. You have to file a protest if you believe your appraised value is too high compared to current market conditions.
What happens if I do not pay my property tax bill?
If you do not pay by January 31, penalties and interest begin to accrue. If you do not pay for an extended period, the county can place a lien on your property or sell it at a tax sale to recover the unpaid taxes. Contact your county tax assessor if you are having trouble paying.
Does Texas have a state property tax?
No. Texas has no state property tax. All property tax in Texas is local — set and collected by counties, school districts, and cities. This is one reason Texas has no state income tax.
How often does the appraised value change?
The county appraisal district updates appraised values every year. Your value can go up, go down, or stay the same depending on changes to your property and the local real estate market. You receive a new notice of appraised value each year.
What is the difference between appraised value and market value?
Appraised value is what the county appraisal district thinks your property is worth for tax purposes. Market value is what your property would actually sell for. They are often different — appraised value may be higher or lower depending on the appraisal district's methods and the current market.