How Much Is Property Tax in Texas? 2025 Rates, and How to Lower Your Bill

Wondering how much is property tax in Texas? You’re not alone.

Owning a property in Texas offers many benefits, from a strong housing market to the absence of a state income tax. However, it also means dealing with some of the highest property tax rates in the country. Since rates vary across counties and municipalities, understanding how property taxes work in Texas can help you make informed decisions and plan your budget effectively.

Let’s break down more about property taxes in Texas and what you can do to lower your bill.

How Property Taxes Are Determined

Texas has high property taxes, with a median property tax rate of 1.67%, which is considerably higher than the national median of 1.02%. As a result, half of the state's property owners pay more than $3,971 annually. This amount can vary depending on the county or city where your property is located and whether you qualify for property tax exemptions.

If you apply for the Texas homestead exemption, the 10% rule prevents the county appraisal district from increasing the total taxable value of a homestead by more than 10% each year. Recently, Texas also introduced a 20% circuit breaker that protects commercial property owners whose properties are valued under $5 million from increases of more than 20% in property value.

Components of Property Tax Rates

Several local taxing authorities determine the amount of property taxes homeowners need to pay:

• School district taxes:

  Finance local public schools

• County taxes:

  Fund local courts, roads, and law enforcement

• City taxes:

  Finance fire departments, libraries, and parks

• Special district taxes:

  Finance water and sewer systems, community colleges, and local hospitals

Assessment Process

The County Appraisal District considers factors such as the property's location, size, market, and condition to determine your property’s value. Usually, the assessed value is equal to the market value.

After assessment, the county appraisal district sends a Notice of Appraisal Value indicating the property value to the relevant taxing units. If applicable, your taxable value is then calculated by subtracting any exemptions and applying the 10% homestead assessed value cap.

Tax Rate Calculation

But what is the property tax in Texas?

Each local taxing unit — school district, county, and city — calculates a unique tax rate annually or every other year, which is expressed per $100 of property value. The combined tax rate from all applicable units determines your total property tax rate.

Assume, for example, you’re a homeowner in San Antonio, Bexar County, with a property of taxable value of $300,000 after exemptions. The current tax rate for the key local taxing unit would apply to your property as follows:

For accurate calculations, you can plug in your property value into our Texas property tax calculator.

Factors Influencing Property Tax Differences Across Texas

The average property tax in Texas is relatively high because the state uses those funds to support local services. However, several factors determine the amount property owners pay in taxes.

1. Tax Rates

Each county, city, and school district sets its rate to help fund public services such as public schools and infrastructure. These local rates are combined and applied to your overall property tax bill. The amount you pay varies depending on the property's location and the local community's needs.

2. Valuation Adjustments

Every year, the CAD assesses the market value of all properties, which can affect how much homeowners pay in property taxes. It compares your property's value to nearby ones and makes the necessary changes.

3. Real Estate Growth or Decline

Your county appraisal district determines your taxable property value based on market trends. When real estate in your area grows, your property price goes up — and so does its assessed value. To that end, your property tax bill increases even if the tax rates don’t change.

Allocation of Property Taxes

So, why are property taxes so high in Texas? Texas relies heavily on property taxes to fund its day-to-day operations. Most of its property taxes go toward public school funding to:

• Purchase classroom supplies

• Pay teachers' salaries

• Maintain campuses

• Support extracurricular activities.

The remaining amount supports local administration, county governments, and special units.

Strategies to Lower Your Property Tax Bill

You can lower your property tax bills in Texas using several strategies.

Utilizing Exemptions

Exemption is one of the easiest ways to lower your overall property tax bill in Texas. For example, you can check your homestead exemption status to see if you qualify for different types of homestead exemptions, such as:

• General homestead exemption

• Age 65+ exemption

• Disabled person exemption

• Disabled veteran exemption

Protest and Appeal Process

If you believe your property has been overvalued, you can file for a property tax protest:

1. Review your appraisal notice: Check the property's assessed value and note the appeal deadline.

2. Gather evidence: Compare your property’s assessed value to similar homes in your neighborhood.

3. Fill out the protest form: State the reasons for your appeal.

4. Submit the form: Submit your protest form by the specified deadline.

5. Prepare and attend the hearing: Organize your evidence and present it clearly and calmly during all hearings.

6. Receive a decision: The review board or tax authority will examine your evidence and issue a decision. You can seek a legal appeal if your assessed value and taxes aren’t adjusted.

At Ownwell, we monitor exemptions and apply retroactively for up to two years. We also appeal and protest to ensure your property is correctly valued, and you're not overpaying on property taxes.

Understanding Assessment Notices

Understanding the assessment notice is one of the easiest ways to catch errors and identify inflated values. Check whether the information on the notice matches your records. For example, it might show an extra bedroom you don’t have, potentially raising the assessed value.

Also, check whether the property's assessed value aligns with the current market value. Research recent sale prices of similar homes in your neighborhood and compare them to your true market value.

For instance, if homes with the duplicate square footage as yours sold for $300,000 but your property is assessed at $340,000, you have grounds for an appeal.

Trends and Changes for Property Taxes in 2025

Many Texan homeowners are seeing shifts in their property tax bills this year with rising home values, updated appraisal methods, and new legislation. Here are trends worth noting.

Homestead Exemption Has Been Revised

Recently, state lawmakers revealed that they will increase the homestead exemption for school taxes to $140,000 for regular homeowners and $200,000 for people with disabilities and those 65 and over. Although this proposal hasn't been finalized yet, it would be a relief for homeowners living in areas with high school district tax rates.

Introduction of New Cap on Commercial Properties

Since 2023, there's been a 20% annual cap on how much the taxable value can increase for commercial properties worth $5 million or less. This comes as a relief to commercial property owners who are just starting out because the cap protects them from sudden tax hikes.

Improvements to the Appraisal Process

The state has also made appraisals more transparent. It has:

• Strengthened oversight of appraisal districts

• Improved access to property data

• Enhanced protections for owners filing for protests

With these changes, homeowners can better understand and challenge their property value if they believe it's too high.

Find out How to Lower Your Property Taxes with Ownwell

If your property tax bill feels higher than it should be, you don't have to suffer in silence. You can exercise your right to appeal your property valuation, which could help you save hundreds or even thousands of dollars each year.

Sign up now with Ownwell, and we'll handle the entire protest process for you!

We use data and expertise to fight for a fair assessment at a much lower cost than our competitors. We’ll also help you identify and retroactively apply for any exemptions you qualify for.