Texas has an effective property tax rate of 1.25%, costing homeowners approximately $3,750 annually on a $300,000 home. Select your county below for a more accurate estimate (est., Tax Foundation / U.S. Census ACS 2023).
Texas carries an effective property tax rate of 1.25%, placing it among the top 10 highest-taxed states despite having no state income tax (est., Tax Foundation 2026 / U.S. Census ACS 2023). On a $300,000 home, Texans pay an estimated $3,750 per year in property taxes, which is 39% above the U.S. average of $2,700. This burden funds schools, roads, emergency services, and water districts entirely through local levies, since Texas has no state-level property tax.
Texas Property Tax Rates and How Your Bill Is Calculated
Texas assesses property at 100% of market value as determined annually by each county’s Central Appraisal District (CAD). Unlike many states, Texas has no state-level property tax. Every dollar you pay goes to local taxing units: the county, city, school district, hospital district, and municipal utility districts (MUDs). The sum of all applicable local rates is your total combined rate.
The statewide effective rate of 1.25% is a median derived from actual taxes paid divided by home market values across all owner-occupied properties (U.S. Census ACS 2023 five-year estimates). Because school district levies constitute roughly 45-55% of a Texas property tax bill, moving across a school district boundary within the same county can shift your effective rate by 0.20% or more.
Texas ranks well above the national average of 0.90% primarily because property taxes substitute entirely for state income tax revenue. The Tax Foundation’s 2026 State Business Tax Climate Index ranks Texas 13th overall, noting that while the property tax burden is high, the absence of personal income tax offsets a significant portion for many households.
Texas statewide effective rate, equivalent to approximately $3,750 per year on a $300,000 home (est., Tax Foundation 2026)
| Home Value | Annual Tax (est.) | Monthly Payment (est.) | vs. U.S. Average |
|---|---|---|---|
| $200,000 | $2,500 | $208 | +$150 above avg. |
| $300,000 | $3,750 | $313 | +$225 above avg. |
| $400,000 | $5,000 | $417 | +$300 above avg. |
| $500,000 | $6,250 | $521 | +$375 above avg. |
| $750,000 | $9,375 | $781 | +$563 above avg. |
Estimates use the 1.25% statewide effective rate. U.S. average column uses 0.90%. Estimates do not reflect homestead exemptions or caps. Source: est., Tax Foundation / Census ACS 2023.
Texas Homestead Exemptions and Property Tax Relief Programs
Texas offers one of the most robust homestead exemption structures in the country, particularly for school district taxes. The Texas Comptroller’s homestead exemption guide outlines that you must own and occupy the home as your principal residence on January 1 of the tax year to qualify, and you file once through your county appraisal district.
The 2023 legislative session (SB 2, 88th Legislature Special Session) expanded the school district homestead exemption from $40,000 to $100,000. In November 2025, Texas voters approved a constitutional amendment raising it further to $140,000, effective for the 2025 tax year. At a compressed school M&O rate of $0.89 per $100, a $140,000 exemption saves a qualifying homeowner approximately $1,246 per year in school district taxes alone. Seniors and disabled homeowners receive an additional $60,000 exemption, bringing their total school district exemption to $200,000 as of 2025.
Many counties and cities offer their own optional exemptions on top of the mandatory school district amount, ranging from 5% to 20% of home value. Contact your county appraisal district to confirm which optional exemptions apply to your property.
| Exemption Type | Max Amount | Who Qualifies | Filing Deadline |
|---|---|---|---|
| School District Homestead | $140,000 off taxable value | Primary residence owners | April 30 of tax year |
| Over-65 Additional (School) | $60,000 additional | Age 65+ homeowners | April 30 (no annual renewal) |
| Disabled Person (School) | $60,000 additional | Qualifying disability | April 30 of tax year |
| County Optional Homestead | Up to 20% of market value | Homestead-eligible owners | Varies by county |
| 100% Disabled Veteran | Full exemption (all taxing units) | 100% VA-rated veterans | April 30; one-time |
| Disabled Veteran Partial | $5,000 to $12,000 by rating | Veterans rated 10% to 90% | April 30 of tax year |
| Agricultural Land (1-d-1) | Productivity value appraisal | Qualifying agricultural use | May 1 of tax year |
| Over-65 Tax Freeze | School district taxes frozen at qualifying-year amount | Age 65+ or disabled | Automatic after exemption granted |
Filing note: The April 30 deadline is a hard cutoff. File through your county appraisal district’s portal, not through the Texas Comptroller directly. Late applications are accepted in limited circumstances up to two years past the deadline but may carry a 10% penalty.
Texas Property Tax Assessment System and Appraisal Caps
Texas appraises property at 100% of estimated market value, with each county’s Central Appraisal District (CAD) conducting annual appraisals. Unlike states that reassess only upon sale, Texas reassesses all properties every year based on comparable sales and income approaches. This means long-term owners in appreciating markets can see sharp annual increases in taxable value.
The homestead appraisal cap limits the annual increase in your primary residence’s taxable value to 10% above the prior year’s appraised value (plus the value of any new improvements). This is a cap on appraised value, not on tax rates. If your home’s market value jumps 25% in one year, your taxable value rises by only 10%, creating a gap that accumulates over time for long-term owners in high-growth markets such as Austin and Frisco.
Homes sold are reappraised to market value in the year following the sale, resetting any cap benefit for the buyer. The 2023 SB 2 legislation also created a temporary 20% annual appraisal cap for non-homestead real property valued at $5 million or less, effective for tax years 2024 to 2026 (see SB 2, Sec. 23.231).
| System Element | Rule | Impact on Homeowner |
|---|---|---|
| Assessment Ratio | 100% of market value | Full market value is the starting point before exemptions |
| Annual Reassessment | Every year by county CAD | Values can change annually; no fixed reassessment trigger |
| Homestead Cap | Max 10% increase per year in taxable value | Long-term owners in rising markets pay taxes on below-market value |
| Non-Homestead Cap (Temporary) | Max 20% per year, 2024-2026 only | Landlords and investors get temporary protection during pilot period |
| Sale-Triggered Reassessment | Yes, reappraised to full market value post-sale | Buyers lose any accumulated cap benefit from prior owner |
| Protest Deadline | May 15 or 30 days after notice, whichever is later | Homeowners can challenge CAD valuations annually |
| No State Property Tax | All levies are local | Rates vary widely; no statewide floor or ceiling on combined rate |
Major Tax Districts and County Variations in Texas
Texas’s 254 counties show effective rates ranging from 1.25% in Collin County to 2.12% in Tarrant County across the 10 most populous counties, which are home to roughly 68% of the state’s population. This variation reflects differences in school district funding needs, city service levels, the number of special districts layered on top, and median home values.
Urban counties with dense school district and MUD infrastructure (Harris, Tarrant, Dallas) consistently post effective rates above 1.90%. High-income suburban counties with newer infrastructure (Collin, Travis) run lower because high home values absorb fixed tax levies at a lower percentage. Border counties like El Paso and Hidalgo carry moderate-to-high effective rates reflecting lower median home values and school funding pressures.
The table below uses the same county rates that power the calculator above, sourced from U.S. Census Bureau ACS 2023 five-year estimates of actual taxes paid relative to self-reported home values. These are county-wide averages; individual parcels vary based on school district, city, MUD membership, and exemptions claimed.
| County | Effective Rate (est.) | Annual Tax on $300k Home | Notes |
|---|---|---|---|
| Harris | 2.09% | $6,270 | Includes Houston. MUDs and flood control districts add materially to base rate. Source: Census ACS 2023. |
| Dallas | 1.99% | $5,970 | Includes Dallas ISD and multiple suburban ISDs with varying M&O rates. Source: Census ACS 2023. |
| Tarrant | 2.12% | $6,360 | Fort Worth area; high school district levies. Highest effective rate among top-10 counties. Source: Census ACS 2023. |
| Bexar | 1.54% | $4,620 | San Antonio; lower rate partly reflects a diverse commercial tax base. Source: Census ACS 2023. |
| Travis | 1.34% | $4,020 | Austin; high home values dampen the effective rate percentage. Source: Census ACS 2023. |
| Collin | 1.31% | $3,930 | Frisco/Plano; affluent suburbs with high home values and newer school districts. Source: Census ACS 2023. |
| Denton | 1.43% | $4,290 | Fast-growing DFW suburb; mix of older and newer development. Source: Census ACS 2023. |
| Fort Bend | 1.65% | $4,950 | SW Houston suburbs; above-average rate driven by MUD and school district levies. Source: Census ACS 2023. |
| Hidalgo | 1.46% | $4,380 | McAllen/Edinburg area; lower median home values but mid-range effective rate. Source: Census ACS 2023. |
| El Paso | 1.73% | $5,190 | High effective rate relative to income levels; school district funding is the primary driver. Source: Census ACS 2023. |
| Statewide Average | 1.25% | $3,750 | All owner-occupied properties statewide including rural counties with below-average rates. Source: Tax Foundation / Census ACS 2023 (est.). |
Recent Texas Property Tax Law Changes and 2025-2026 Outlook
Texas enacted its largest property tax relief package in decades through SB 2 (88th Legislature, 2023 Special Session). The centerpiece was $12.7 billion in state funding to compress school district M&O rates by 10.7 cents per $100 of value, plus an increase in the school district homestead exemption from $40,000 to $100,000. A homeowner in a school district previously charging $1.00 per $100 saw their school portion drop to roughly $0.89 per $100. On a $300,000 home with a $100,000 exemption, the compression alone produced approximately $179 in annual school district savings.
In November 2025, Texas voters approved a constitutional amendment raising the school district homestead exemption from $100,000 to $140,000 for tax year 2025. At a compressed school M&O rate of $0.89, this additional $40,000 in exemption saves a qualifying homeowner roughly $356 per year in school district taxes. Seniors and disabled homeowners also benefit from a $60,000 additional exemption plus a school district tax freeze.
Looking ahead, the temporary 20% non-homestead appraisal cap is set to expire after tax year 2026. There is active legislative discussion about making it permanent, but no bill has passed as of August 2026. Texas homeowners should also be aware that the federal SALT deduction cap (IRS Topic 503) limits the combined state and local tax deduction to $10,000 per year, which can increase the after-federal-tax cost of Texas property taxes for higher-income households.
| Change | Effective Date | Est. Annual Savings | Who Benefits |
|---|---|---|---|
| School M&O Rate Compression (SB 2) | Tax Year 2023 | $179 to $500 per year (varies by district) | All homeowners in participating ISDs |
| Homestead Exemption: $40k to $100k | Tax Year 2023 | ~$540 per year at 0.90% school rate | Primary residence owners |
| Homestead Exemption: $100k to $140k | Tax Year 2025 | ~$356 per year at 0.89% school rate | Primary residence owners |
| Non-Homestead 20% Cap (Pilot) | Tax Years 2024 to 2026 | Varies; protects against sharp market jumps | Non-homestead property under $5M |
| Over-65 Tax Freeze Adjustment | Tax Year 2023 | School district taxes frozen after qualifying year | Homeowners age 65+ or disabled |
Disclaimer and Methodology
This calculator provides estimates for planning purposes only. Your actual property tax bill depends on your county’s assessed value for your specific parcel, local tax rates, exemptions claimed, and assessment caps. County-level rates shown are county averages, not parcel-specific figures. Before closing on a purchase, always pull the parcel record from your county assessor and ask for the post-sale taxable value estimate.
What this calculator does not account for:
- Specific school district, city, MUD, or special district rates within your county (which can vary by 0.50% or more)
- The 10% homestead appraisal cap on taxable value growth for existing owners
- Over-65 or disabled tax freezes that lock school district taxes
- Post-sale reappraisal that eliminates any prior owner’s cap savings
How to get an accurate estimate:
- Look up your parcel on your county’s Central Appraisal District website to get the current appraised value and exemptions applied.
- Use the Texas Comptroller’s Truth in Taxation tool to find adopted rates for every taxing unit at your address.
- Sum all applicable rates (county + school district + city + special districts) and apply them to your taxable value.
- If purchasing, ask your title company for a post-sale tax estimate that accounts for the reset of the prior owner’s homestead cap.
Data sources: County effective rates use U.S. Census Bureau ACS 2023 five-year estimates. Statewide average uses Tax Foundation 2026 data. Legislative data sourced from Texas Legislature Online. Exemption amounts from the Texas Comptroller’s office.
Return to the National Property Tax Calculator to compare Texas with other states.
