Understanding Texas Property Tax Rates: What You Need to Know

Property taxes are a key part of homeownership in Texas, and understanding how they work can help you avoid unnecessary costs. Texas is one of the few states without a state income tax, so it relies heavily on property taxes to fund essential services like schools, roads, and emergency services. For new homeowners or anyone looking to understand how the system works, navigating Texas property tax rates can feel overwhelming. But don’t worry—we’ve got you covered!

In this post, we’ll break down how Texas property taxes work, provide insight into the tax rates for the top 20 counties by population, and share some helpful tips for managing your property taxes with services like Abode.

How Do Texas Property Taxes Work?

Texas property taxes are determined at the county level, meaning the rate you pay will vary depending on where you live. The amount of tax you owe is based on the assessed value of your property (usually the market value) and the tax rate set by the local taxing authorities, which could include your county, city, school district, and special districts like hospital or community college districts.

Each year, local government bodies set their property tax rates, often referred to as "ad valorem" taxes because they're based on the value of your property. The local appraisal district will determine your home's market value and the applicable tax rate is applied to that value to calculate your annual tax bill.

For example, if your home is appraised at $300,000 and the combined tax rate is 2.5%, you would owe $7,500 in property taxes that year.

Texas Property Tax Rates: Top 20 Counties by Population

Let’s take a look at the property tax rates in the top 20 most populous counties in Texas. These rates can fluctuate depending on local government needs, voter-approved bond measures, and more. Each county has its own specific challenges and benefits when it comes to property taxes.

Harris County Property Tax Rates (Houston)

Average Rate: 2.09%

Harris County, which includes Houston, is known for its slightly higher rates due to urban infrastructure needs. However, it offers exemptions for homeowners and seniors, helping reduce the tax burden.

Dallas County Property Tax Rates (Dallas)

Average Rate: 2.17%

As one of Texas's largest cities, Dallas County residents often face higher rates, though exemptions are available to bring down costs for eligible homeowners.

Tarrant County Property Tax Rates (Fort Worth)

Average Rate: 2.10%

With Fort Worth being a rapidly growing city, Tarrant County’s property taxes reflect the need to fund expanding services and schools.

Bexar County Property Tax Rates (San Antonio)

Average Rate: 2.18%

San Antonio residents benefit from various exemptions, and while rates here are higher than in some counties, relief programs help soften the impact.

Travis County Property Tax Rates (Austin)

Average Rate: 2.22%

Austin’s property taxes tend to be on the higher side, partly due to the rapid growth and influx of new residents. Travis County is known for its highly desirable real estate market.

Collin County Property Tax Rates (Plano, Frisco)

Average Rate: 2.20%

One of the fastest-growing counties, Collin County sees higher taxes, but it’s a popular spot for tech companies and families looking for top-tier school districts.

Denton County Property Tax Rates (Lewisville)

Average Rate: 2.08%

Denton County’s rates are competitive for the DFW metroplex, and it remains an attractive option for families due to its strong public school system.

El Paso County Property Tax Rates (El Paso)

Average Rate: 2.24%

Although property values tend to be lower, El Paso County’s tax rate is one of the highest due to the area’s reliance on property taxes for funding public services.

Fort Bend County Property Tax Rates (Sugar Land)

Average Rate: 2.23%

The suburban sprawl of Fort Bend offers lower home prices compared to Houston, but tax rates remain high to support infrastructure and growing neighborhoods.

Montgomery County Property Tax Rates (Conroe)

Average Rate: 2.12%

This rapidly expanding county north of Houston has seen increases in property taxes to support the growing demand for schools and public services.

Williamson County Property Tax Rates (Round Rock)

Average Rate: 2.29%

Another rapidly growing area due to Austin’s expansion, Williamson County has a higher tax rate to meet the demands of its booming population.

Cameron County Property Tax Rates (Brownsville)

Average Rate: 1.89%

Cameron County offers some of the lowest tax rates among major Texas counties, making it more affordable for homeowners in this region, although property values remain lower than in metropolitan areas.

Hidalgo County Property Tax Rates (McAllen)

Average Rate: 2.11%

With a growing population, Hidalgo County faces rising property taxes to support local services, though property values remain relatively affordable compared to other parts of Texas.

Nueces County Property Tax Rates (Corpus Christi)

Average Rate: 2.12%

Nueces County's property taxes reflect the need for coastal infrastructure improvements, but they remain manageable for many homeowners, especially given the cost of living in Corpus Christi.

Galveston County Property Tax Rates (Galveston)

Average Rate: 2.20%

Due to its coastal location and tourism industry, Galveston County has higher property taxes to support the maintenance of local infrastructure and public services.

Brazoria County Property Tax Rates (Pearland)

Average Rate: 2.16%

Pearland and surrounding areas in Brazoria County have seen increases in property taxes to accommodate the growth of residential communities, especially as Houston continues to expand outward.

Lubbock County Property Tax Rates (Lubbock)

Average Rate: 1.93%

Lubbock County’s property tax rates are moderate, reflecting the region’s focus on agriculture and its relatively slower urban growth compared to other Texas counties.

Jefferson County Property Tax Rates (Beaumont)

Average Rate: 2.17%

Property tax rates in Jefferson County are higher due to the need for hurricane preparedness and rebuilding infrastructure after storm damage.

McLennan County Property Tax Rates (Waco)

Average Rate: 1.90%

With its growing college town and historical sites, McLennan County keeps property tax rates moderate to maintain public services while promoting affordability for residents.

Smith County Property Tax Rates (Tyler)

Average Rate: 1.84%

Smith County offers one of the lowest property tax rates among Texas counties, providing relief to homeowners in the more rural parts of the state.

Tricks for Lowering Your Property Tax Bill

Whether you live in a high or moderate-tax rate county, there are ways to reduce your property tax bill. Here are some tips:

1. Apply for a Homestead Exemption: If you haven’t applied for one, this is the easiest way to reduce your taxable value. Homestead exemptions can knock off a percentage of your home’s appraised value.
2. Challenge Your Home’s Appraisal: If you believe your home’s value is over-assessed, you can file an appeal with your local county appraisal district.
3. Check for Additional Exemptions: If you’re over 65, a veteran, or have certain disabilities, you may qualify for additional exemptions.
4. Keep an Eye on Local Bonds and School Taxes: Voter-approved measures can increase property tax rates, so it’s a good idea to stay informed and vote accordingly.

🏠 Insider Tips for Winning Property Tax Appeals in Texas

How to Pay Your Property Tax Bill

In Texas, property taxes are generally due by January 31st each year. If you fail to pay by then, interest and penalties may apply. Most counties allow you to pay online, by mail, or in person. Some counties also offer installment plans if you're unable to pay the full amount upfront.

Filing a Property Tax Appeal? We can help! 

Navigating Texas property taxes can be tricky, especially when tax rates and exemptions differ from county to county. At Abode, we help Texas homeowners make sense of their property tax bills, file for exemptions, and even appeal over-assessments. We can help ensure you’re paying only what you owe, and nothing more.

Take control of your property taxes and unlock potential savings with Abode today!