A Guide to Property Taxes in Texas
Property taxes can be confusing — and expensive — for Texas homeowners.
Texas is one of a handful of states that doesn’t have a state income tax. Local governments rely on property taxes from homeowners and businesses to fund everything from public school needs to infrastructure updates to police officer salaries.
Understanding what property taxes are and how the system works is important, whether you’re a first-time homeowner or looking to keep your annual bill in check. This quick guide can help you avoid financial surprises and take advantage of potential exemptions.
How Property Taxes Are Calculated
In Texas, property tax rates are set at the local level by elected officials, such as school board trustees, city council members, and county commissioners. Each property is taxed by local taxing units, such as the school district, county, and city.
Rates are based on two main factors:
- Your property’s assessed value.
- Tax rates set by the local government.
Common Property Tax Exemptions
Exemptions help reduce the amount of a property’s value that’s subject to taxation. In most cases, property owners must apply for exemptions. A residence homestead exemption is the most common type of exemption. It potentially lowers your taxes by exempting a portion of your property’s value from taxation. For this type of exemption, homeowners must file an application with supporting documentation with the county appraisal district office. There are also exemptions for Texans who are 65 and older and/or disabled.
How to Protest an Appraisal
Texas homeowners can protest a property tax appraisal when they feel that it’s incorrect or unfair. When reviewing your appraisal notice, ask yourself: “Is the assessed market value accurate? Is the property description correct? Have there been recent sales in the area that indicate a lower value?”
Before you start the protest process, understand the deadlines. The deadline to officially protest the appraisal is May 15 or 30 days after your county appraisal district delivers your notice — whichever is later.
To protest an appraisal:
- Gather supporting evidence, such as sales comparisons, independent appraisals, market trends, photos, and documentation.
- Submit a written notice of protest to the county appraisal review board. Many districts have an online portal.
- The board will notify you of your hearing date. Organize your documents and practice your argument.
- Attend the hearing date to present your evidence. The board will issue a decision at the end of the hearing. If you aren’t content with the decision, you can appeal it through binding arbitration; you also have the option to file a lawsuit in district court.
Important Property Tax Deadlines
Here’s an overall look at the property tax process for each tax year, according to the Texas Comptroller.
- Jan. 1: The appraisal district determines your home’s market value, per state law.
- Jan. 1–April 30: Appraisal districts complete appraisals and process applications for exemptions.
- April–May: Property tax appraisal notices are mailed.
- May 15: Deadline for filing a protest. (Or 30 days after the notice of appraised value is delivered, whichever is later.)
- May–July: Taxpayers can share their concerns with the appraisal review board.
- August–September: Local taxing units adopt tax rates.
- Oct. 1: Tax bills are sent to property owners.
Note: Generally, tax payments are due by Jan. 31 of the following year.
Planning Ahead
Property taxes rise as your home’s value increases. Here are some ways to plan throughout the year to manage the cost.
- Keep track of proposed tax rates and stay informed about public hearings.
- Reapply for or update exemptions. This is especially important when you turn 65 and/or move into a new home.
- Set aside money each month in preparation of the bill.
With taxes top of mind, get ahead of the inevitable with this tax preparation checklist.
