Texas Property Taxes Explained: What Every Homebuyer Needs to Know
How Texas Property Taxes Work
Texas has no state income tax — but it does have some of the highest property tax rates in the nation. Before you buy a home in Texas, understanding how property taxes work can save you from sticker shock when your first tax bill arrives.
Texas property taxes are assessed and collected at the county level. Each county has an appraisal district that determines the value of your property, and local taxing entities (cities, school districts, special districts) set the tax rates applied to that value.
How Your Property Tax Bill Is Calculated
Your tax bill = (Appraised Value − Exemptions) × Tax Rate
For example, if your home is appraised at $450,000, you qualify for a $100,000 homestead exemption, and your combined tax rate is 2.1%, your annual tax bill would be: ($450,000 − $100,000) × 2.1% = $7,350/year
Texas Property Tax Rates by Area (2025)
Tax rates vary significantly by location. Approximate combined rates for popular metro areas:
Austin (Travis County): 1.8%–2.2%
Dallas-Fort Worth: 2.0%–2.8%
Houston (Harris County): 2.0%–2.5%
San Antonio (Bexar County): 1.8%–2.3%
Suburban areas with MUDs: Can exceed 3.0%
The Texas Homestead Exemption
If the home will be your primary residence, you qualify for the homestead exemption, which reduces your taxable value by at least $100,000 for school district taxes. You must apply — it is not automatic — and the exemption applies for the tax year in which you qualify (you must own and occupy as of January 1st).
When Are Property Taxes Due?
Texas property tax bills are typically mailed in October and due by January 31st. Pay after January 31st and you'll owe a 6% penalty plus monthly interest. Most homeowners with a mortgage pay through escrow managed by their lender.
Can You Protest Your Property Tax Value?
Yes — and many Texas homeowners should. File a protest with your county appraisal district by May 15th (or 30 days after your Notice of Appraised Value, whichever is later). Useful evidence includes recent comparable sales, a recent appraisal, or documentation of property condition.
How Flat Fee Agents Help
At KAT Realty, we make sure our buyer clients understand the full cost of homeownership — including property taxes — before making an offer. We research actual tax bills for homes you're considering so there are no surprises at closing. With our flat $4,999 fee, you keep more of your buyer rebate to offset first-year costs. Learn more about our flat fee buyer service.
