Property Taxes in Texas
Every year you own a home in Texas, you’ll need to pay property taxes. While the state doesn’t impose a property tax, each local taxing authority—counties, cities, school districts, and others—sets its own rates and collects the funds.
For Texas landlords, staying on top of property taxes is essential. Doing so helps you forecast yearly expenses and manage your cash flow for both primary homes and rental properties.
Property taxes fund a variety of services, including public education, infrastructure, and essential services like police and fire departments. They also support other local needs.
In this guide, we’ll explain how property taxes work, why they matter, and how to plan for them. We’ll also cover what you can expect to pay each year and when payments are due.
Texas Lease Agreement
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Texas Landlord-Tenant Law: Overview of Rights 2024
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Calculating Property Taxes in Texas
The method for calculating property taxes can vary from state to state. In Texas, all tax districts use the same basic formula, though specific rates differ across the state.
Property tax calculation: Local governments calculate property taxes based on the appraised value of the property, minus any exemptions. That number is then multiplied by the tax rate set by the local taxing authority. In other words:
Property tax = (Appraised value – Exemptions) x Tax rate
Property taxes are calculated each year based on 100% of the appraised fair market value as of January 1st. Texas has some of the highest property taxes in the country, but you can take steps to reduce your tax burden. More on that below.
Using property management software like TurboTenant makes it easy to track your property tax burden with built-in rental accounting tools.
New and recent laws: In 2023, Texas voters approved Proposition 4, which changed how public schools are funded and lowered property taxes for many Texans. The proposition reduced tax rates by replacing local revenues with state money. It also more than doubled the homestead exemption on school district taxes, increasing it from $40,000 to $100,000.
National comparison: Texas has some of the highest property tax rates in the country. The state currently ranks in the top five or six in terms of average property taxes.
County/Municipality-Specific Rates
Since Texas property tax rates can vary widely from county to county, here are some of the rates you can expect in different parts of the state.
El Paso County: El Paso County has one of the highest property tax rates in the state, averaging around 2.14%. The county includes several taxing entities, such as the county, city, and school districts, all of which rely heavily on public funding.
Travis County: Travis County also has property tax rates above the national average, at approximately 1.61%. The area has significant urban infrastructure to maintain, which keeps the property tax rate on the higher side.
Sabine County: As a small county in east Texas with limited need for public services or infrastructure, the property tax rate remains low. In 2024, it sits at around 0.64%.
Fort Bend County: Fort Bend County includes a large suburban community and carries an average tax rate of around 2.06%, one of the highest in the country. Much of the funding supports suburban development, public services, and infrastructure.
Harris County: As one of the largest counties in Texas, Harris County, which includes Houston, has an average property tax rate of around 1.77%. The county serves a heavily populated and diverse area with many funding needs.
Reassessments and Increases
Reassessment frequency: For all Texas county appraisals, the local tax assessor must assign a “market value” to each property by January 1st of each year. State law requires a reappraisal at least once every three years, though most counties conduct annual assessments. Properties are also reassessed when they are sold to reflect their current value for taxation purposes.
Renovations and improvements: Significant improvements to your home can increase its assessed value, which may lead to a higher property tax bill. Upgrades that add square footage or boost the property’s value, such as building an addition, adding a garage, or installing a pool, can trigger a reassessment. Regular maintenance, repairs, or painting usually don’t affect the assessed value.
Reassessment impact: Reassessments can significantly affect your property tax bill, as property improvements, changing market conditions, and recent sales can all lead to higher taxes. Be sure to factor in a possible increase when calculating the cost of your home improvements.
Reducing Taxes and Exemptions
While homeowners can’t avoid property taxes, they can take steps to reduce the burden. Some of these include:
Appeals: Homeowners usually receive their Notice of Appraised Value in April. This notice shows the property’s value according to the tax board and lists any applicable exemptions. Texas property owners can protest and appeal the appraised value if they believe it’s too high.
To start the process, notify the county appraiser that you disagree with the value by May 15th or within 30 days of the notice date. You’ll attend a hearing with the Appraisal Review Board, an independent body that reviews these disputes. At the hearing, submit any information that supports your case. The Board will then review the facts and make a decision, which you’ll receive by August. That decision is final for the year.
Some exemptions can help ease property taxes across the state, including the homestead exemption. A home qualifies as a homestead if it’s your primary residence. Rental properties do not qualify. Homeowners can reduce the appraised value of their home by up to $100,000 when claiming this exemption.
In addition, Texas homeowners may be able to claim the following exemptions:
Senior citizens: Texas homeowners aged 65 and older can claim an additional $10,000 reduction in their assessed value, which they can add to the standard homestead exemption. To qualify, the property must meet the homestead exemption requirements.
Disabled veteran: Texas allows disabled veterans or their surviving spouses to exempt a portion of the property’s total value from the property tax bill. The exemption amount depends on the disability rating assigned to the veteran by the U.S. Department of Veterans Affairs.
Gold Star spouse: Texas law grants a total property tax exemption to the surviving spouse of a U.S. armed services member killed in the line of duty. To qualify, the surviving spouse must not have remarried since the service member’s death.
Organization-specific: Many religious, charitable, educational, and science-based organizations can reduce their property taxes. You can find a full list of these exemptions, along with application details, by reviewing the Texas Property Tax Exemptions list.
Property Tax Deductions
Tax deductions: Texas property taxes paid on rental properties are deductible from rental income, which helps reduce a landlord’s overall taxable income. When combined with other rental property tax deductions, such as insurance premiums, depreciation, and maintenance costs, landlords can significantly lower their tax burden.
Forms: Report deductions from rental income on Schedule E, which outlines both rental income and expenses.
How Often You Pay Taxes
Payment frequency: You must pay property taxes each year. If you are disabled, over 65 years old, or your property is in a disaster area, you can pay taxes on homestead properties in four equal installments.
Due dates: The government issues property taxes, which become due on October 1st every year. In most cases, you must pay by January 31 to have the payment count as “on time.”
Late payments: If you miss the deadline, a 6% penalty and 1% interest will apply starting February 1st. Penalties increase by 1% each month until July when the penalty reaches 12%. Interest continues at 1% per month with no maximum.
How to pay: You can pay by cash, check, money order, credit card, or electronic funds transfer.
What do property taxes pay for in Texas?
Governments don’t levy property taxes without a plan for how to use them. Instead, they’re carefully planned and vitally important to keeping the community afloat.
Education: A significant portion of property tax revenue goes directly into public education to helps pay teacher salaries, fund classroom resources, maintain school facilities, and support after-school and special education programs.
Public safety: Property taxes also fund critical public safety services. These include police departments, fire departments, EMS staffing and resources, and disaster response.
Infrastructure: Maintaining and building infrastructure projects is another primary use of property tax funds. This maintenance includes roads and bridges, public transit, water and sewage treatment, and traffic control systems.
Government services: The last major recipient of property tax dollars is government services. These funds support public libraries, parks and recreational facilities, waste management, public health initiatives, and the administration and staffing of government offices.
Resources and Contacts
Texas Property Tax FAQs
Does Texas have property tax?
Texas does not have a statewide property tax. Instead, each county and locality sets and collects its own property taxes.
How much is property tax in Texas?
The average property tax in Texas ranks among the highest in the country. The statewide average tax rate sits at about 1.63%.
When are property taxes due in Texas?
Property taxes become due on October 1st and must be paid by January 31st to count as on time.
What is the property tax rate in Texas?
The average property tax rate in Texas is around 1.63%.
