Texas Property Taxes, Explained Without the Headache

Texas doesn't tax your paycheck, so local governments lean on property taxes. The statewide average effective rate is well above the national average, and many DFW cities land around or above 2% once every unit is added up. It's not a conspiracy; it's the trade-off for no income tax. (Still allowed to grumble, though.)

1. The county appraisal district sets your home's market value as of January 1.
2. Exemptions (like the homestead) are subtracted to get the taxable value for each taxing unit.
3. Each unit (school district, city, county, college district, hospital district and so on) sets its own rate per $100 of value.
4. Taxable value × each rate, added up, is your bill.

Two identical houses a mile apart can have different bills if they're in different cities or school districts.

• January 1: value and ownership are set for the year.
• Spring: appraisal districts mail notices of appraised value.
• May 15 (or 30 days after your notice is mailed, whichever is later): the usual deadline to protest.
• Fall: tax bills go out.
• January 31: payment deadline. From February 1, penalties and interest start (7% combined in February, and it grows).

If you pay through your mortgage, your lender pays from your escrow account, but it's still smart to check the bill.

1. Claim your exemptions. The homestead exemption is the big one for your main home. See our homestead guide.
2. Protest your appraisal if the value looks too high. It's free and often worth it. See how to protest.
3. For land: qualifying agricultural use can be appraised at a much lower productivity value. See the ag valuation guide.

A seller's bill may reflect their exemptions (like the over-65 freeze) that won't carry over to you. When you buy, estimate taxes from the price and the local rates, not from what the seller paid. Boraak's payment estimator uses the seller's reported tax when there is one, and a clearly labeled estimate otherwise.