Property Taxes in Texas
Texas's effective property tax rate is 1.36%, ranking #44 out of 50 states (1 = lowest). The median annual property tax paid is $4,438.
Texas has no state income tax, but property taxes are among the highest in the nation — effectively serving as the state's primary revenue mechanism. Rates are set by school districts, cities, counties, and special districts, with combined rates reaching 2-3% of market value in many suburban communities. The homestead exemption provides significant relief: a mandatory $100,000 exemption for school taxes, plus optional exemptions offered by cities and counties. Texas caps annual appraisal increases at 10% for homesteaded properties (5% as of 2024), limiting tax growth in rapidly appreciating markets. Despite these protections, the high base rates mean property taxes are a defining cost of Texas homeownership.
By BuyAHomeIn Editorial | Updated 2026-03-02 | Sources: Tax Foundation, U.S. Census
Tax Rate
1.36%
Median Annual Tax
$4,438
National Rank
#44 of 50
1 = lowest
Homestead Exemption
Yes
Annual Property Tax by Home Price
| Home Price | Annual Tax | Monthly |
|---|---|---|
| $200,000 | $2,720 | $227 |
| $300,000 | $4,080 | $340 |
| $400,000 | $5,440 | $453 |
| $500,000 | $6,800 | $567 |
| $750,000 | $10,200 | $850 |
* Based on the average effective rate of 1.36%. Actual rates vary by county and municipality.
Homestead Exemption in Texas
Unlimited value, up to 10 acres in city
File for the homestead exemption after purchasing your primary residence in Texas to reduce your assessed property value, lowering your annual tax bill. Contact your county assessor's office for the application.
How Texas Compares
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