Texas Property Taxes

How Texas property taxes work

Texas has no state income tax, so local property taxes fund schools, roads, emergency services, and other community services. Property tax is an ad valorem tax — it is based on the appraised value of real property and assessed by local taxing units.

Your total tax bill combines rates from multiple entities: the county, school district, city (if applicable), and special districts such as municipal utility districts (MUDs). Each taxing unit sets its own rate within state law.

The county appraisal district (CAD) appraises property value. The tax assessor-collector (or county tax office) collects taxes based on those values and adopted rates.

Key players

• County Appraisal District (CAD)

  Appraises property at market value as of January 1 each year, maintains ownership records, and processes exemption applications.

• Appraisal Review Board (ARB)

  A local board that hears property owner protests of appraised values after notice from the CAD.

• Tax Assessor-Collector

  Calculates tax bills from adopted rates and taxable values, collects payments, and handles delinquent tax procedures.

• Taxing units

  County commissioners court, school districts, cities, and special districts that adopt annual tax rates and levy taxes.

Important dates

• January 1

  Lien date — property is appraised as of this date for the tax year.

• April – May

  Protest period opens after appraisal notices are mailed (typically May 15 deadline).

• September – October

  Taxing units adopt annual tax rates.

• October

  Tax bills are typically mailed to property owners.

• January 31

  Last day to pay property taxes without penalty for most Texas counties.

Common exemptions

Texas law provides several property tax exemptions that reduce taxable value. The homestead exemption is the most common — you must own and occupy the property as your primary residence and file an application with your CAD, generally by April 30.

• General homestead

  $100,000 reduction in value for school district taxes (state minimum).

• Additional homestead

  $100,000 reduction for school district taxes under current state law.

• Over-65 or disabled

  Additional $10,000 exemption; may also qualify for a tax ceiling on school taxes.

• Disabled veteran

  Partial or total exemption based on disability rating from the VA.

• Agricultural use

  Productivity appraisal for qualifying open-space land.

Protesting your appraisal

If you disagree with your appraised value, you may file a protest with the ARB. Filing is typically done through the CAD online portal or in writing. You can present evidence such as comparable sales, an independent appraisal, or condition issues.

Resolving value disputes before closing is important — the contract may allocate who pays taxes based on the certified value, and unexpected increases affect escrow and cash to close.

Property taxes at closing

Property taxes are a standard line item on the Closing Disclosure and often affect both buyer and seller cash to close. Title professionals review tax status because delinquent taxes can create liens that attach to the property.

At closing, taxes are typically prorated between buyer and seller based on the closing date and the contract. The seller usually credits the buyer for taxes accrued but not yet due, or the buyer reimburses the seller for prepaid taxes.

Unpaid prior-year taxes, pending exemptions, or open protests can delay closing until resolved. Your title company verifies tax status as part of the title commitment process.

• Buyer's Guide — tax information
• Estimated Closing Cost Calculator
• Glossary — Ad Valorem Tax
• Glossary — Homestead Exemption