Texas Property Taxes

Overview of Texas Property Taxes

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If you own property in Texas, you are required to pay property taxes every year. As is the case with most states, Texas property taxes are locally administered and collected by the various taxing units in the state. Property taxes are a major source of revenue for local governments, funding local government services like schools, streets, roads, police, and fire protection among others.

The state and its local governments collect $222 billion in total revenue every year. Of that, $53 billion or 23.82% of total revenue is from property taxes. Generally speaking, Texas is a high tax state as indicated by the higher percentage of property taxes compared to total revenue. The average homeowner pays $17.74 for every $1,000 of home value in property taxes.

The average Texas property tax bill adds up to $3,123, which is among the highest in the country. However, the amount you pay in property taxes ultimately depends on the location of your property. For instance, homeowners in Brooks County pay an average of $803 while those in Fort Bend County pay $5,137.

How do Texas property taxes work? Property taxes are based on your property's value. Each year, county appraisal districts must appraise properties to determine their "market value" or the amount the property would sell for in the open market. The appraised value is also the assessed value and the figure upon which tax rates are applied to get your annual Texas property tax bill.

Texas property tax rates are set by the various taxing units in the state depending on their budgetary requirements and the total property values in their jurisdiction. Taxing units include school districts, counties, cities, junior colleges, and special districts. The various tax rates from the different taxing units are totaled and levied as a percentage of your property's appraised value. For instance, if the total tax rate was 1.5% and your home is valued at $200,000, your Texas property tax bill would add up ($200,000 x 1.5%) $3,000.

If you are planning to buy a home in Texas and want to understand how much your property tax bill could potentially cost, check out our Texas Property Tax Tool to see what your bill would be.

Texas Property Tax Due Dates

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County appraisal districts are required to appraise all properties within their jurisdiction as of January 1 every year. Appraisal districts send notices of appraised value to homeowners in April/May. In August/September, local taxing units adopt tax rates. The county tax assessor-collector, acting on behalf of the taxing units, sends out property tax bills to homeowners on October 1. It is noteworthy that failure to receive a tax bill does not shield you from penalties and interest for late payment of Texas property taxes.

But when are property taxes due in Texas? In most cases, your Texas property tax bill is due on January 31 of the following year after assessment. Unpaid taxes become delinquent on February 1. You are advised to consult your local appraisal district if the due dates fall on a weekend or holiday.

Taxes that remain unpaid after Texas property tax due dates result in interest and penalties charged on the original amount. Penalties are computed at 6% while interest is charged at 1% on February 1. The penalty accrues at 1% per month until July 1 when the penalty increases to 12%. Interest continues to accrue at 1% per month with no maximum. However, attorneys hired by taxing units to claim delinquent taxes can charge an additional penalty of up to 20% to cover their legal fees.

Delinquent Texas property taxes can lead to a "Tax Sale" which is a public auction in which your property is sold to the highest bidder. If your home is not sold during the tax sale, the county assumes ownership. The state gives you a two-year "redemption period" in which to clear the taxes, penalties, interest, and other costs before the highest bidder can assume ownership of the property.

Texas Property Tax Exemptions

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Besides the option to appeal property taxes if you disagree with the county appraisal district's valuation of your property, the state of Texas also offers several exemptions to qualified homeowners. The most common are homestead and senior exemptions. Eligible homeowners can save hundreds of dollars in Texas property taxes. However, you are still subject to Texas property tax due dates notwithstanding your eligibility.

Texas Homestead Exemption

Texas' homestead exemption exempts a part of your home's appraised value from Texas property taxes. The property must be your principal residence on Jan. 1 of the tax year for you to qualify for this exemption. The maximum amount of appraised value exempted is $25,000. However, only school districts are mandated to offer this exemption. You can apply for this exemption to the appraisal district in which your property is located.

Texas Senior Citizens Exemption

Texas' senior exemption exempts $10,000 of a qualified homeowner's appraised value from Texas property taxes on top of the $25,000 offered to all homeowners. To qualify, the homeowner must be aged at least 65 years and own and occupy the property as their principal residence. Taxing units are allowed to offer an additional homestead exemption of $3,000 for senior and disabled homeowners. More information about this exemption can be found on the Texas Comptroller of Public Account's website.

Other Exemptions

Other Texas property tax exemptions include Disabled Veterans and Surviving Spouses Exemption. Under this provision, veterans who were disabled while serving with the U.S. armed forces receive an exemption of up to $12,000 depending on the rating of their disability. The disability and its connection to military service are certified by the Veteran's Administration or the arm of the military in which the veteran served. The surviving spouse of an eligible veteran also benefits from this exemption. Details about this exemption can be found on the Texas Comptroller of Public Account's website.

How to Appeal Your Property Taxes in Texas

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You can appeal property taxes in Texas if you disagree with the appraisal district's valuation of your property. If successful, an appeal can lower your Texas property taxes. The first step of appeal is writing a protest with your local appraisal district. A written notice preserves your rights to appeal to the Appraisal Review Board (ARB). In most cases, it is possible to resolve the difference with the appraisal office. If there is still a difference of opinion, you should file an appeal with the ARB by May 15 or 30 days from receiving your notice of appraised value, whichever is later. If you disagree with ARB's findings, you can appeal to the District Court in the county where your home is located. Other appeal avenues include binding arbitration or the State Office of Administrative Hearings (SOAH). However, you have to meet certain criteria to use the SOAH appeal option.

The process of filing an assessment appeal varies across Texas though it generally follows the same steps from county to county:

1. Obtain your assessment
2. Determine if you are overassessed
3. Complete forms needed to appeal
4. File property tax appeal
5. Prepare for hearing
6. Attend hearing
7. Appeal the decision

How to Appeal Your Property Taxes in Harris County

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To help you understand how to appeal your property taxes in Texas, here is a breakdown of the process in Harris County, the most populous county in Texas.

Obtain your assessment

If you are a homeowner in Harris County, you can obtain details of your property's assessment from your Notice of Appraised Value.

Determine if you are over-assessed

The best way to determine if your property's valuation reflects its true market value is by comparing the sales prices of similar units within your locality. Use TaxProper's search tool to look for such properties and compare their selling prices to the value placed on your property.

Complete forms needed to appeal

The forms you need to appeal property taxes will be provided to you at Harris County's appraisal district. However, the forms are not mandatory as long as your written protest to the appraisal districts has all the required details about your property.

File property tax appeal

Property tax appeals in Harris County are filed with the Appraisal Review Board.

Prepare for hearing

As the homeowner, you are required to present evidence supporting your opinion of value before the ARB. Evidence can include but is not limited to photographs of your property and comparables, receipts or estimates for repairs, engineering reports, and property surveys.

Attend hearing

You can appear before Harris County's ARB in person, by telephone conference call, or by affidavit. You can also have an agent represent you at the hearing. However, you must familiarize yourself with the ARB procedures and adhere to them.

Appeal the decision

If you are dissatisfied with ARB's decisions, you can appeal to the Harris County district court.

Property Tax Information for Texas Counties

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The table below provides county-level information about how property taxes work in each Texas county.

Want to learn more? Click the county links to learn more about a specific Texas county.