Property Taxes in Texas
Texas property taxes are the honest trade-off for no state income tax, and this record does not soften that: the state's average effective rate (roughly 1.60%) consistently ranks among the nation's highest, funded locally by county, city, and school-district taxing units rather than one statewide rate -- with a real, recently expanded homestead exemption and appraisal cap as the main relief mechanisms.
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Learn moreTexas's average effective rate runs among the nation's highest -- and it is a local, not statewide, rate
Texas has no state property tax; rates are set locally by a layered combination of county, city, school district, and special-purpose taxing units, and sources cluster the statewide average effective rate at 1.40%-1.63% (this record anchors to roughly 1.60%), consistently ranked roughly 6th-9th highest in the nation depending on the ranking source. Median annual property tax paid carries real, disclosed source disagreement -- one 2026 source cites $4,111 (on a $260,400 median home value), another cites $3,441 with a wide 25th-75th percentile spread ($1,318-$6,136) -- and county-level variance is extreme, with figures as low as $162 cited for Loving County against $7,745 for Denton County. There is no substitute for confirming your specific county and school district's rate directly.
The 2026 homestead exemption: $140,000 off school-district taxable value, up from $100,000
Texas voters approved Proposition 13 in November 2025, raising the mandatory homestead exemption from school-district property taxes to $140,000 for the 2026 tax year, up from $100,000 previously. Homeowners 65 or older, or with a qualifying disability, receive an additional $60,000 exemption stacking on top -- for a combined $200,000 off school-district taxable value for a qualifying senior or disabled homeowner. This exemption applies only to school-district taxes specifically, not to every taxing unit on a property tax bill, and it is not automatic: it requires a one-time, free application filed with the county appraisal district.
The 10% appraisal cap softens rising values for homesteaded property specifically
Once a homestead exemption is on file, Texas Tax Code §23.23 caps how much the property's assessed (taxable) value can rise in a given year at 10%, regardless of how much the appraised market value moves -- a real, meaningful protection against a single sharp reappraisal spike, though it applies only to homesteaded owner-occupied property, not investment property, and it caps the assessed value used for tax purposes, not the market value itself. This record could not source a verified statewide per-county property-tax-rate low/high pair from a primary source this pass -- confirm your target county's current rate directly with the county appraisal district or the Texas Comptroller.
What this means for a Texas property-tax budget
The combination of no state income tax and a comparatively high, locally-set property tax means Texas property-tax planning is genuinely more consequential here than in many other states -- confirm your target county and school district's current combined rate, file your homestead exemption promptly after closing, and do not assume the statewide average is what you will actually owe. See the buying-a-home and cost-of-living topics for how this interacts with the rest of a Texas relocation budget.
Key takeaways
- Texas's statewide average effective property tax rate (roughly 1.40%-1.63%, this record anchors 1.60%) ranks among the nation's highest -- but rates are set locally, and county-level variance is extreme.
- As of 2026, a filed homestead exemption removes $140,000 from school-district taxable value (up from $100,000 via November 2025's Proposition 13), plus an additional $60,000 for homeowners 65+ or with a qualifying disability.
- Once filed, Texas Tax Code §23.23 caps annual assessed-value growth at 10% for homesteaded owner-occupied property -- a real protection, but not automatic and not available to investment property.
- Median annual property tax paid carries real, disclosed source disagreement ($3,441-$4,111 depending on methodology) -- confirm your specific target county and school district's current rate directly.
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