How much is property tax in Texas?

The state's average effective rate is about 1.60% — a $350,000 home pays roughly $5,600 a year, or $467 a month. Major metros with strong school districts routinely run 2% or more, which is why Texas bills surprise transplants from states where 1% is typical.

Why is Texas property tax so high?

Because Texas collects no state income tax and funds schools and local government almost entirely from property tax. Every taxing unit — county, city, school district, college, hospital district — sets its own rate and stacks onto one bill. The property tax is the income tax's replacement, not an anomaly.

What is the Texas homestead exemption?

A filing that removes $100,000 of your home's value from school-district taxation (widened from $40,000 in 2023), plus protection under the 10% appraisal cap. It applies to your primary residence; you file once with the county appraisal district and it carries over year to year.

What is the 10% appraisal cap in Texas?

For homesteaded properties, the appraised value used for taxes cannot increase more than 10% per year, regardless of market appreciation. The cap resets when the property is sold or improvements trigger reassessment — which is why two identical houses on the same street can carry very different assessed values.

Do Texas seniors get a property tax break?

Yes — homeowners who are 65 or older, or disabled, receive an additional $10,000 school-district exemption and a ceiling on the school portion of their taxes: once you qualify, the school tax amount generally cannot increase above that year's level for as long as you own the home.

When are Texas property taxes due?

Bills are mailed in October and become delinquent on February 1, when a 10% penalty plus interest begins accruing. Most homeowners with a mortgage never see the bill directly — the lender collects one-twelfth each month into escrow and pays it, which is the monthly figure this calculator shows.

Texas Property Tax Calculator

Texas runs one of America's highest property tax burdens on purpose: the state collects no income tax, so schools, cities, counties, colleges and hospital districts are funded almost entirely from property tax — and the taxing units stack. The Tax Foundation puts Texas's effective rate on owner-occupied housing at about 1.60%, nearly double the U.S. average of 0.91%, and big-metro homeowners routinely pay 2% or more once every district's slice is added.

Estimate your bill with the Texas preset loaded below, then make it precise with your county's actual rate — last year's bill divided by your home's value beats any state average, because rates swing hard between taxing jurisdictions. The sections underneath cover the two Texas-specific mechanisms that change the answer: the homestead exemption and the 10% appraisal cap.

Home value

Market value — what it would sell for, not your purchase price from years ago.

State (loads its effective rate)

Effective tax rate

Loaded from the selection — override with your county's actual rate (last year's bill ÷ value).

Exemption

Homestead and similar exemptions remove part of the value from taxation — many states offer 20-50% to owner-occupants.

Annual property tax

$5,600.00

1.60% effective rate on $350,000.00 taxable value.

Monthly escrow: $466.67
Effective vs statutory: why this rate

Starting values are set for a typical texas scenario — change any field to match yours. Need the plain version? Property Tax Calculator.

Why Texas property taxes are among America's highest

The same $350,000 house pays wildly different annual bills depending on the state line — and Texas sits near the expensive end by design rather than accident.

Annual tax on a $350,000 home (effective rates, Tax Foundation 2026)
State	Effective rate	Annual bill	Monthly escrow
Texas	1.60%	$5,600	$467
U.S. average	0.91%	$3,185	$265
New Jersey	2.23%	$7,805	$650
California	0.71%	$2,485	$207
Hawaii	0.27%	$945	$79

Rates are effective rates on owner-occupied housing — taxes paid ÷ market value — so the comparison absorbs each state's assessment rules. Texas's figure averages across counties; big metros often run 2%+.

The homestead exemption and the 10% appraisal cap

Two Texas-specific rules materially change a homeowner's bill, and both require filing — neither applies automatically to a property that qualifies.

The general homestead exemption removes $100,000 of your home's value from school-district taxes, widened from $40,000 by the 2023 legislation — on a $350,000 home that is roughly $1,300 a year off the school slice alone. File with your county appraisal district.
The 10% appraisal cap: once you have a homestead exemption, your appraised value cannot rise more than 10% a year no matter what the market does. In a hot market this is the difference between a bill that drifts and one that doubles.
Age 65 or disabled homeowners get an additional $10,000 school exemption plus a school-tax ceiling — the school portion of your bill can be frozen at the year you qualify.
The cap resets when the home is sold or substantially improved, which is why recent buyers in fast-apprecating neighborhoods often pay far more than long-time neighbors on the same street.

Your real rate is the county's, not the state's

A Texas bill is the sum of many overlapping taxing units — county, city, school district, community college, hospital district, sometimes flood control or emergency services. Two homes across a school-district boundary can differ by thousands of dollars a year, and the statewide 1.60% is only the average of all those stacks.

The most honest rate for this calculator is your county's actual figure: take last year's total property tax bill and divide it by your home's market value. That one number already includes every taxing unit and every exemption you currently hold. Enter it in the rate field and the annual and escrow figures become exact rather than typical.

Frequently asked questions

How much is property tax in Texas?: The state's average effective rate is about 1.60% — a $350,000 home pays roughly $5,600 a year, or $467 a month. Major metros with strong school districts routinely run 2% or more, which is why Texas bills surprise transplants from states where 1% is typical.
Why is Texas property tax so high?: Because Texas collects no state income tax and funds schools and local government almost entirely from property tax. Every taxing unit — county, city, school district, college, hospital district — sets its own rate and stacks onto one bill. The property tax is the income tax's replacement, not an anomaly.
What is the Texas homestead exemption?: A filing that removes $100,000 of your home's value from school-district taxation (widened from $40,000 in 2023), plus protection under the 10% appraisal cap. It applies to your primary residence; you file once with the county appraisal district and it carries over year to year.
What is the 10% appraisal cap in Texas?: For homesteaded properties, the appraised value used for taxes cannot increase more than 10% per year, regardless of market appreciation. The cap resets when the property is sold or improvements trigger reassessment — which is why two identical houses on the same street can carry very different assessed values.
Do Texas seniors get a property tax break?: Yes — homeowners who are 65 or older, or disabled, receive an additional $10,000 school-district exemption and a ceiling on the school portion of their taxes: once you qualify, the school tax amount generally cannot increase above that year's level for as long as you own the home.
When are Texas property taxes due?: Bills are mailed in October and become delinquent on February 1, when a 10% penalty plus interest begins accruing. Most homeowners with a mortgage never see the bill directly — the lender collects one-twelfth each month into escrow and pays it, which is the monthly figure this calculator shows.