Texas Property Taxes in 2025
Texas does not levy a state income tax, but it relies heavily on property taxes to fund local government services such as public schools, infrastructure, and emergency response.
For Texas homeowners, understanding how property taxes are calculated, assessed, and reduced through exemptions is crucial for accurate budgeting and compliance.
This guide explains everything you need to know about Texas property taxes in 2025 from assessment to payment and legal ways to minimize your liability.
Step 1: How Property Taxes Work in Texas
Texas property taxes are administered locally, not by the state.
Each property is assigned a taxable value by the county appraisal district, and local taxing units (like school districts, cities, and counties) apply tax rates to that value.
Formula:
Property Tax = (Appraised Value × Assessment Ratio) × Local Tax Rate
Example:
If your home is valued at $300,000 and the combined tax rate for your city, county, and school district is 2.2%, your annual property tax would be $6,600.
Step 2: Who Sets the Property Tax Rate
- Appraisal Districts: Determine the market value of properties annually.
- Taxing Units: Local authorities such as school boards, cities, and counties decide the tax rate.
- Texas Comptroller: Oversees and standardizes the process but does not collect property tax.
Each taxing entity holds public hearings before setting the rate, and property owners have the right to review and protest their property valuation.
Step 3: How Property Value Is Assessed
Property values are reassessed every year to reflect market conditions.
Factors that affect valuation include:
- Square footage and improvements.
- Location and neighborhood trends.
- Comparable recent sales.
- Condition and age of the property.
If you believe your property has been overvalued, you can file a protest with your county appraisal district, usually by May 15.
Step 4: Understanding Texas Property Tax Bills
Property tax bills are typically sent out in October and due by January 31 of the following year.
Payments made after that date incur penalties and interest.
If you escrow property taxes with your mortgage lender, they will pay them on your behalf using funds from your escrow account.
Important Deadlines:
- October: Tax bills mailed.
- January 31: Payment deadline.
- February 1: Delinquency period begins.
Failure to pay may result in penalties, liens, or foreclosure by the taxing authority.
Step 5: Homestead and Other Property Tax Exemptions
Texas law offers several property tax exemptions that lower the taxable value of your property:
- Residence Homestead Exemption
- Available to homeowners using the property as their primary residence.
- Reduces the taxable value of your home, lowering your tax bill.
- Over-65 and Disabled Person Exemptions
- Provide additional reductions and freeze the school district portion of property taxes to prevent increases.
- Veterans Exemption
- Disabled veterans may qualify for partial or total property tax exemptions based on disability percentage.
- Agricultural and Wildlife Exemptions
- Land used for agricultural purposes or wildlife preservation receives special valuation treatment, significantly reducing tax liability.
Example:
If your home’s appraised value is $350,000 and you receive a $40,000 homestead exemption, you’ll be taxed on $310,000 instead.
Step 6: How to Protest or Appeal Property Valuation
Homeowners can file a Property Tax Protest if they believe their valuation is too high.
Steps include:
- Review your property appraisal notice carefully.
- Gather evidence such as comparable sales or an independent appraisal.
- File your protest with the Appraisal Review Board (ARB) by the May 15 deadline.
- Attend the hearing or appoint a tax representative to argue your case.
If successful, your property’s taxable value will be reduced, lowering your future property tax bills.
Step 7: Payment Options and Relief Programs
Texas offers flexible payment methods and limited relief options:
- Split or partial payments may be allowed by some counties.
- Deferrals are available for homeowners aged 65 and older or disabled individuals.
- Tax installment plans may be available for those who cannot pay in full by the deadline.
It’s important to contact your county tax office early if you need alternative payment arrangements.
Conclusion
Texas property taxes fund vital community services but can represent a significant expense for homeowners.
Understanding how your taxes are calculated, knowing your exemption options, and reviewing your property valuation annually can save you thousands each year.
Staying proactive and compliant ensures long-term financial stability and peace of mind as a Texas property owner.
Call to Action
For expert assistance in reviewing Texas property taxes, filing valuation protests, or planning property tax deductions, contact Anshul Goyal, CPA EA FCA, a U.S.-licensed Certified Public Accountant, Enrolled Agent authorized to practice before the IRS, and cross-border tax expert helping Texans optimize their property-related finances and compliance.
Disclaimer
This article is for educational purposes only and should not be taken as legal or tax advice. Always consult a qualified CPA or property tax professional before filing or appealing property taxes.
Top 5 FAQs
- When are Texas property taxes due?
By January 31 each year. Payments made after that date are considered delinquent. - Who collects property taxes in Texas?
Local taxing units, including counties, cities, and school districts, collect property taxes through county tax offices. - Can I reduce my property taxes in Texas?
Yes. Homestead, senior, veteran, and agricultural exemptions can significantly lower taxable value. - What if I disagree with my home’s appraised value?
You can file a property tax protest with your county’s Appraisal Review Board before the deadline. - Does Texas have a statewide property tax?
No. All property taxes are assessed and collected locally, not by the state government.
About Our CPA
Anshul Goyal, CPA EA FCA is a Certified Public Accountant licensed in the United States, Enrolled Agent authorized to practice before the IRS, and cross-border tax expert assisting Texas residents with property tax planning, federal filings, and IRS compliance.