Texas property tax rates, among the nation’s highest due to the absence of state income tax, fund local services and schools. Calculated based on appraised value, tax rate, and exemptions, these rates vary significantly by county. Homeowners can lower their tax burden through homestead, over-65, and disability exemptions, or by protesting appraised values. Understanding Texas property tax rates is crucial for informed home buying decisions.
Why Are Texas Property Taxes So High?
People ask this all the time. The short answer? Texas funds public schools, infrastructure, and emergency services through property taxes because the state doesn’t collect income tax. Local governments rely on these taxes to keep things running.
Here’s where things get tricky: Texas property tax rates vary by county, city, and school district. You could move a few miles and get hit with a completely different tax bill.
How Property Taxes Are Calculated
It comes down to three parts:
- Appraised Value: The county determines what they think your home is worth.
- Tax Rate: Each area sets its own rate.
- Exemptions: These lower your taxable value (if you qualify).
If your county appraises your home at $300,000 and your total tax rate is 2.2%, you’re paying $6,600 in property taxes.
Texas Property Tax Rates by County
The rates aren’t the same everywhere. Here’s a look at some averages:
| County | Average Property Tax Rate |
|---|---|
| Travis (Austin) | ~2.18% |
| Harris (Houston) | ~2.31% |
| Dallas | ~2.23% |
| Bexar (San Antonio) | ~2.26% |
Check out more property tax tips on our blog.
How to Lower Your Texas Property Tax Bill
Texas offers some ways to cut that tax bill down:
- Homestead Exemption: If it’s your primary residence, you can lower your taxable value.
- Over 65 & Disability Exemptions: Seniors and those with disabilities get tax reductions.
- Protest Your Value: If your home’s appraisal seems too high, you can challenge it.
Filing for exemptions is easy and free. Never pay a company to do this for you.
What Happens If You Don’t Pay?
Property taxes are a big deal in Texas. If you don’t pay:
- You’ll get hit with penalties and interest.
- The county can place a tax lien on your property.
- Worst case? You could lose your home in a tax foreclosure.
FAQs
How often do Texas property tax rates change?
Every year. Counties revalue homes annually, and tax rates are set based on local government needs.
Can I appeal my property’s appraised value?
Yes, and you should if you think it’s too high. Most counties allow appeals online.
Are Texas property taxes higher than in other states?
Yes. Texas has some of the highest property tax rates in the U.S. because there’s no state income tax.
Conclusion
Texas’s reliance on property taxes in lieu of state income tax results in some of the nation’s highest rates. These taxes, calculated based on appraised value, local tax rates, and available exemptions, vary significantly across counties. Homeowners can mitigate this expense through homestead, age-related, and disability exemptions, as well as by contesting property appraisals. Therefore, understanding Texas property tax rates is essential for informed financial planning and homeownership decisions.