Taxes in Arlington
Texas has no state personal income tax -- a statewide fact, not Arlington-specific -- and Arlington's combined sales tax rate is 8.25% (6.25% state plus 2% local add-ons), the maximum combined rate Texas law allows. Property tax is where sources genuinely disagree on Arlington's effective rate, and where a genuinely Arlington-specific detail matters: the city offers its own local homestead exemption on top of Texas's statewide one.
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Learn moreNo State Income Tax (Briefly Restated)
Texas is one of a small number of U.S. states with no state personal income tax, applying statewide and not specific to Arlington. It matters here mainly as the backdrop against which Arlington's property tax and insurance costs (which carry more of the real household-budget weight) should be evaluated.
Arlington's Combined Sales Tax Rate
The combined sales tax rate in Arlington is 8.25% as of 2026, per Avalara and SalesTaxHandbook data reviewed August 2026: the state's 6.25% base rate plus 2% in city and special-district add-ons, at the statutory ceiling Texas law allows for combined local add-ons. This is not an outlier for a Texas city at this size -- it's effectively the maximum any Texas jurisdiction can reach, matching what this site's Dallas research also documents for that city.
Property Tax: A Genuine Spread Across Sources
Arlington's effective property tax rate is disputed across the sources checked this pass. Ownwell cites a median effective rate of 1.49% for Arlington specifically, with real ZIP-code variance (76005 running around 2.00%, 76014 around 1.32%). A separate source cites Arlington's effective rate at 1.69%, described as running about 2% above the broader Tarrant County average of 1.65%, while another source puts the Tarrant County countywide rate at 1.77% for 2026. These don't reconcile to one number -- treat the real range as roughly 1.3%-2.0% depending on the specific ZIP code and which source's methodology is used, and confirm your specific parcel with the Tarrant Appraisal District (TAD) rather than relying on any single citywide figure. One data point for scale: Ownwell cites a typical Arlington homeowner paying about $4,666/year on a median home valued at $276,400. The City of Arlington has also proposed a 3-cent property tax rate increase for fiscal year 2026, with 2 cents closing a projected budget shortfall and 1 cent levied in anticipation of a business personal property tax exemption taking effect in 2027, per WFAA and Texas Cash House Buyer coverage reviewed August 2026.
Homestead Exemptions: Statewide Plus a Genuine Arlington-Specific Local Exemption
Texas's statewide general homestead exemption for school-district property taxes rose to $140,000 in 2026 (from $100,000), and homeowners 65 or older or with a qualifying disability receive an additional $60,000 school-district exemption -- both statewide rules that apply fully in Arlington, with a homestead cap limiting annual appraised-value growth to 10% per year once homesteaded (see the Dallas taxes topic page for the fuller statewide detail, which applies identically here). Worth knowing as an Arlington-specific detail: the city also offers its own local 20% homestead exemption on the city-tax portion of a bill specifically -- not every Texas municipality offers a local homestead exemption of its own on top of the statewide one, so this is a genuine local advantage rather than something to assume applies elsewhere in Texas. Applications are filed through the Tarrant Appraisal District (TAD), generally by April 30, and exemptions are not automatic for a new buyer.
Key takeaways
- No Texas state income tax -- applies statewide, not Arlington-specific, but the single biggest driver of overall tax competitiveness.
- Arlington's combined sales tax rate is 8.25% (6.25% state + 2% local add-ons) -- the statutory maximum any Texas jurisdiction can reach.
- Arlington's effective property tax rate is genuinely disputed across sources -- roughly 1.3%-2.0% depending on ZIP code and methodology (Ownwell: 1.49% citywide median; other sources: 1.69%-1.77%). The city has also proposed a 3-cent FY2026 rate increase.
- Arlington offers its own local 20% homestead exemption on the city-tax portion of a bill, on top of Texas's statewide $140,000 school-district exemption (2026) and 10%/year appraisal cap -- a genuine local detail not every Texas city provides. File with the Tarrant Appraisal District by April 30.
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