Property Taxes in Texas: What Homeowners Need to Know in 2026

Property taxes can be one of the largest expenses of owning a home in Texas. This is especially important for retirees and older homeowners who may be living on a fixed income.

Texas doesn’t have a state property tax. Instead, property taxes are collected by local taxing units. These may include your county, city, school district, hospital district, community college district, and other special districts.

The amount you pay depends on where you live, the taxable value of your property, the exemptions you receive, and the tax rates adopted by each local taxing unit.

Fortunately, Texas homeowners may have several ways to reduce or manage their property taxes. These include the residence homestead exemption, additional exemptions for people age 65 or older, tax ceilings, appraisal protests, installment payments, and tax deferrals.

This guide explains how Texas property taxes work and what you can do if your bill is becoming difficult to afford.

This article is for general information and isn’t legal, tax, or financial advice. Property tax rules and local exemptions may change. Contact your county appraisal district or tax office for information about your property.

Does Texas Have a State Property Tax?

Texas doesn’t have a statewide property tax. The Texas Comptroller doesn’t appraise your home, set your tax rate, or collect your property taxes.

Local governments are responsible for property taxation. The money collected helps pay for public schools, police and fire protection, roads, emergency services, libraries, and other local services.

Depending on where you live, several taxing units may appear on your property tax bill. For example, one homeowner may pay property taxes to a county, city, school district, and hospital district.

Each taxing unit adopts its own tax rate. That is one reason property taxes can be much higher in one Texas community than in another, even when the homes have similar values.

The Texas Comptroller provides statewide information and forms, but questions about a specific property should normally be directed to the county appraisal district or the local tax assessor-collector.

How Are Texas Property Taxes Calculated?

Your property tax bill is generally based on two main numbers:

The taxable value of your property
The combined tax rates of the local taxing units

Your county appraisal district determines the appraised value of your property. Exemptions and other limitations are then applied to determine the taxable value for each taxing unit.

The local taxing units apply their tax rates to that taxable value.

Tax rates are usually shown as an amount per $100 of taxable value. For example, a rate of $1.20 per $100 of taxable value is equal to 1.2%.

Here is a simplified example:

Home’s appraised value: $350,000
Total exemptions: $150,000
Taxable value: $200,000
Combined tax rate: 2%
Estimated property tax: $4,000

This is only an example. The same property may have a different taxable value for the city, county, and school district because not every exemption applies to every taxing unit.

Your final bill may also include more than one tax rate. To understand it, look at each individual taxing unit instead of only looking at the total.

Appraised Value and Taxable Value Aren’t the Same

One of the most confusing parts of Texas property taxes is the difference between market value, appraised value, and taxable value.

Market value is generally the amount your property could sell for under normal conditions.

Appraised value is the value used by the appraisal district after applying any limits required by law.

Taxable value is the amount left after exemptions and other reductions are applied. This is the number used to calculate your taxes.

These values may be different. A home could have a market value of $400,000 but a lower appraised or taxable value because of the homestead appraisal cap and applicable exemptions.

An increase in the market value also doesn’t automatically mean your tax bill will increase by the same percentage. Your final bill depends on exemptions, appraisal limitations, tax ceilings, and the rates adopted by the local taxing units.

The Texas Residence Homestead Exemption

The residence homestead exemption is one of the most important tax benefits available to Texas homeowners.

In 2026, school districts are required to provide a $140,000 exemption on the taxable value of a qualifying primary residence.

For example, if your home is appraised at $350,000 and you qualify for the $140,000 school-district homestead exemption, the school district would generally calculate its taxes using a taxable value of $210,000.

Other local taxing units may also provide an optional homestead exemption of up to 20% of the property’s appraised value. However, these local exemptions aren’t automatically offered by every city, county, or special district.

To qualify for a residence homestead exemption, you must generally own the property and use it as your primary residence. The exemption doesn’t normally apply to a vacation home, rental property, or second home.

Homeowners apply through the appraisal district in the county where the property is located. There is no legitimate fee required to file the standard application yourself.

Be cautious if you receive a letter offering to obtain a homestead exemption for a fee. You can get the official Residence Homestead Exemption Application from the Texas Comptroller or your county appraisal district.

The Homestead Appraisal Cap

A residence homestead may also qualify for a limitation on annual increases in its appraised value.

When a home qualifies for the homestead exemption in both the previous and current year, its appraised value generally can’t increase by more than 10% per year, plus the value of any new improvements.

This is often called the homestead appraisal cap.

The cap doesn’t prevent the appraisal district from reporting a higher market value. Instead, it limits the appraised value used for taxation.

For example, your appraisal notice might show:

Market value: $440,000
Capped appraised value: $385,000

The lower capped value may then be used before applicable exemptions are subtracted.

The 10% cap isn’t a guarantee that your property tax bill can only increase by 10%. Changes in tax rates, exemptions, improvements, and other factors may affect the final bill.

The cap also isn’t a reason to ignore an inflated market value. An excessive market value could affect future appraised values, especially if the difference between the market value and capped value becomes smaller.

Property Tax Benefits for Texans Age 65 or Older

Texas homeowners age 65 or older may qualify for additional property tax benefits.

In 2026, school districts are required to provide an additional $60,000 residence homestead exemption for a qualifying homeowner age 65 or older. This is added to the general $140,000 school-district homestead exemption.

That means a qualifying older homeowner may receive a combined $200,000 exemption from the home’s value when school property taxes are calculated.

For example:

Appraised home value: $350,000
General school homestead exemption: $140,000
Additional age-65 exemption: $60,000
School-district taxable value: $150,000

Cities, counties, and other local taxing units may offer their own additional exemptions for homeowners age 65 or older. These local exemptions vary, so check with your appraisal district.

To qualify, a person must generally be at least 65 years old, have an ownership interest in the home, and use it as a primary residence.

A homeowner may qualify during the year in which they turn 65. They don’t necessarily have to wait until the following January to apply.

Understanding the School Property Tax Ceiling

A qualifying homeowner age 65 or older may also receive a school property tax ceiling, sometimes called a tax freeze.

The ceiling generally limits the amount of school property taxes charged on the residence homestead. It is based on the amount of school taxes owed in the first year the homeowner qualifies.

This doesn’t freeze the home’s market value. The appraisal district may continue to update the value, but the school tax ceiling may limit the amount of school taxes owed.

The school tax bill could increase if the homeowner makes significant improvements to the property, such as adding a room, building a garage, or constructing a pool. Ordinary repairs and maintenance generally don’t have the same effect as a new improvement.

If school tax rates or exemption amounts decrease, the homeowner may receive the benefit of a lower bill. The ceiling is intended to limit increases, not prevent eligible homeowners from receiving reductions.

Some cities, counties, and junior college districts may adopt similar tax ceilings for homeowners age 65 or older or disabled. Ask your appraisal district which taxing units in your area offer them.

Protections for a Surviving Spouse

A surviving spouse may be able to continue certain property tax benefits that belonged to a deceased spouse.

For the age-65 homestead exemption and tax ceiling, a surviving spouse may qualify if the surviving spouse is at least 55 years old, hasn’t remarried, and continues to use the home as a primary residence. Other conditions may also apply.

These benefits may not always transfer automatically. A surviving spouse should contact the appraisal district soon after the property owner’s death to ask which forms and documents are required.

Waiting could result in an incorrect appraisal or tax bill.

Exemptions for Disabled Homeowners and Veterans

Texas also provides property tax benefits for certain disabled homeowners, disabled veterans, and surviving spouses.

A qualifying disabled homeowner may receive an additional school-district homestead exemption and a school tax ceiling. The disability requirements are specific. Receiving benefits through another disability program doesn’t necessarily mean a person automatically qualifies under Texas property tax law.

Veterans with service-connected disabilities may qualify for exemptions based on their disability ratings.

A disabled veteran who receives 100% disability compensation from the Department of Veterans Affairs due to a service-connected disability, along with a qualifying 100% disability rating or individual unemployability rating, may qualify for a complete property tax exemption on a residence homestead.

Different rules may apply to partially disabled veterans, surviving spouses of disabled veterans, and surviving spouses of service members killed or fatally injured in the line of duty.

Because these exemptions can be substantial, eligible veterans and families should contact their appraisal district and review the Texas Comptroller’s property tax exemption information.

Review Your Appraisal Notice Every Year

Many homeowners pay attention only to their tax bill, but the appraisal notice that arrives earlier in the year may be just as important.

Review the notice carefully and check:

The property description
The listed square footage
The market and appraised values
Your residence homestead exemption
Your age-65, disability, or veteran exemption
Any tax ceiling shown in the records
Improvements attributed to the property
Land and building values
The deadline to file a protest

Look for factual errors. An appraisal district may have the wrong square footage, number of bedrooms, condition, or information about improvements.

Also verify that every exemption you expect is still listed. Contact the appraisal district promptly if an exemption has disappeared or the property information is incorrect.

Can You Protest Your Property Appraisal?

Texas property owners have the right to protest certain appraisal district decisions.

You may have grounds to protest if:

The appraised value is too high
The property was valued unequally compared with similar properties
An exemption was denied or removed
The appraisal district included property you don’t own
The property description contains a significant error
The appraisal district failed to send a required notice
Another action affected your property or tax liability

The usual deadline is May 15 or 30 days after the appraisal district delivers the notice of appraised value, whichever is later.

Always use the specific deadline printed on your notice. Missing the deadline may limit your options.

You can generally file a protest with your county appraisal review board. Many appraisal districts allow protests to be filed online, by mail, or in person.

Filing a protest doesn’t guarantee a lower value, but it gives you an opportunity to present evidence and ask for a correction.

How to Prepare for an Appraisal Protest

A strong protest should be based on evidence instead of simply stating that the tax bill is too high.

Useful evidence may include:

Recent sales of comparable homes
Photographs of needed repairs
Contractor estimates
Foundation or roof reports
Evidence of water, fire, or storm damage
An independent appraisal
Incorrect property details from the appraisal district
Information showing similar homes were valued lower

Request the appraisal district’s evidence before your hearing. This can help you understand which comparable properties and adjustments were used.

Compare the homes carefully. A nearby property may not be truly comparable if it is larger, newer, remodeled, or located in a different neighborhood.

Keep your presentation organized and brief. Start with the value you believe is correct, explain why, and provide documents supporting your position.

You may receive an informal settlement offer before the formal hearing. Review it carefully. You don’t have to accept an offer if you believe the value is still incorrect.

The Texas Comptroller’s protest guide explains the protest and appeal process in greater detail.

When Are Texas Property Taxes Due?

Property tax bills are commonly mailed in October. In most cases, taxes are due when the bill is received and become delinquent if they aren’t paid by January 31 of the following year.

That generally means payment must be made by January 31 to avoid penalties and interest beginning February 1.

A mortgage company may collect money for property taxes through an escrow account. If you have an escrow account, review the annual escrow statement and confirm that the tax bill was paid correctly.

Even if a mortgage company is responsible for payment, the property owner should verify that the payment was made and that all exemptions were applied.

If you don’t receive a tax bill, don’t assume that nothing is owed. Contact the local tax office. Failure to receive the bill generally doesn’t eliminate the tax, penalties, or interest.

Payment Options for Older Homeowners

Some homeowners age 65 or older, disabled homeowners, and certain other eligible property owners may be allowed to pay residence homestead property taxes in four installments without the usual penalty and interest.

Specific deadlines and requirements apply. The taxpayer generally must notify the tax office and make the first payment by the required date.

Local tax offices may also offer other payment arrangements. If you are having difficulty paying, contact the tax office before the bill becomes delinquent.

Waiting can make the situation more expensive because penalties, interest, collection costs, and attorney fees may be added.

Be cautious about using a high-interest loan to pay a property tax bill. Compare the total cost and get independent advice before signing an agreement that places a lien against your home.

Property Tax Deferrals for People Age 65 or Older

A homeowner who is age 65 or older or disabled may be able to defer collection of property taxes on a qualifying residence homestead.

A deferral can postpone collection and may prevent a taxing unit from forcing the sale of the home while the owner qualifies and continues to live there.

However, a deferral doesn’t erase the taxes. The unpaid balance remains attached to the property, and interest continues to accrue. The debt may become due after the homeowner dies, sells the property, or no longer uses it as a qualifying homestead.

A deferral can provide important protection for someone who is house-rich but cash-poor. However, it can also reduce the equity eventually available to the homeowner or heirs.

Before filing a deferral, consider discussing the long-term effect with a qualified Texas attorney, tax professional, or trusted financial adviser. Homeowners should also speak with their mortgage company because an unpaid tax balance may affect the loan agreement.

The Texas Comptroller provides Form 50-126, Tax Deferral Affidavit for Age 65 or Older or Disabled Homeowner.

Property Taxes for People Buying a Texas Home

Prospective buyers should research property taxes before deciding whether a home is affordable.

Don’t rely only on the seller’s current tax bill. The seller may have exemptions, appraisal caps, or tax ceilings that won’t transfer to you.

After a sale, the property’s taxable value may change. Your bill could be significantly higher than the amount paid by the previous owner.

Before buying, ask:

What is the home’s current market value?
Which exemptions does the seller receive?
What would the estimated bill be without the seller’s exemptions?
Which taxing units apply to the property?
Are there special districts or additional assessments?
Is the property located in a municipal utility district?
What tax rate was adopted most recently?
How might a higher purchase price affect future appraisals?

Ask the appraisal district or tax office for information, but remember that an estimate isn’t a guarantee of a future bill.

Include property taxes in your complete housing budget along with the mortgage, insurance, homeowners association fees, utilities, repairs, and maintenance.

A Simple Property Tax Checklist

Take these steps each year:

Confirm that your homestead exemption is active.
Apply for the age-65 exemption when you become eligible.
Ask about city, county, and special-district exemptions.
Confirm that any applicable school tax ceiling is recorded.
Review your appraisal notice for errors.
Compare your value with similar homes.
File a protest by the deadline if the value appears incorrect.
Review every taxing unit listed on your bill.
Confirm that your mortgage company paid the bill if you have escrow.
Contact the tax office early if you need payment assistance.
Keep copies of applications, notices, decisions, and receipts.
Review your exemptions again after moving, becoming disabled, turning 65, or losing a spouse.

The Bottom Line

Property taxes in Texas can be complicated, but homeowners don’t have to accept every number without reviewing it.

Start by confirming that you’re receiving every exemption for which you qualify. Pay close attention to the residence homestead exemption, the additional exemption for people age 65 or older, local optional exemptions, and benefits for disabled homeowners and veterans.

Review your appraisal notice every year, even if your mortgage company pays the taxes through escrow. If the value appears incorrect or unequal, gather evidence and file a protest before the deadline.

Most importantly, ask for help before an unpaid bill becomes a crisis. Installment plans and deferrals may be available, especially for older or disabled homeowners. These options have important rules and possible long-term consequences, but they may help a qualifying homeowner remain in the home.

For information about your specific property, exemptions, deadlines, and local tax rates, contact the appraisal district and tax assessor-collector in the county where the property is located.

Property Taxes in Texas