What is the average effective property-tax rate in Texas?

Texas's statewide average effective property-tax rate is approximately 1.63% of market value, according to the Tax Foundation and Lincoln Institute of Land Policy (2024). That places Texas among the top five highest-property-tax states in the US. On a $350,000 home the annual bill at the state average comes to around $5,705 — and that is before any exemptions.

Why are Texas property taxes so high if there is no state income tax?

Texas funds schools, roads, emergency services, and county government almost entirely through local property taxes because it has no state income tax and a limited state property tax. School districts alone typically account for 40-55% of a Texas homeowner's total property-tax bill. Each county, city, school district, and special district sets its own millage rate independently, and the combined total drives the effective rate well above the national average of roughly 1.00%.

How does the Texas homestead exemption work?

Texas law (as amended by HB 2 in 2023) allows owner-occupants of their primary residence to deduct $100,000 from the school district taxable value — up from the prior $40,000. Because school districts represent roughly 40-55% of a typical Texas property-tax bill, this exemption produces a meaningful saving. Homeowners aged 65 or disabled receive an additional $10,000 school district exemption and a school tax ceiling (freeze) that prevents their school district levy from rising as long as they own the home. You must apply with your county appraisal district to claim the exemption.

Which Texas county has the highest and lowest property-tax rate?

Fort Bend County (suburban Houston) tends to have one of the highest effective rates in the state at around 1.99%. At the other extreme, sparsely populated rural counties like King County can be as low as 0.44%. The major metro counties all cluster near or above the state average: Travis (Austin) at 1.83%, Harris (Houston) at 1.82%, Tarrant (Fort Worth) at 1.80%, Dallas at 1.77%, and Denton at 1.72%. Bexar (San Antonio) and El Paso are slightly lower, near 1.51-1.57%.

How is Texas property tax calculated step by step?

Your county appraisal district (CAD) appraises your property at 100% of market value each year. Any exemptions (homestead, over-65, disabled veterans, etc.) are subtracted from the appraised value to produce the taxable value. Each taxing unit — school district, county, city, and special districts — applies its millage rate (tax rate per $100 of taxable value) to that figure. The totals from all units are summed to produce your annual tax bill. The effective rate quoted in this calculator is simply total tax divided by market value, which is the standard apples-to-apples comparison metric across states.

When are Texas property taxes due and what happens if I miss the deadline?

Texas property tax notices are mailed by October 1 and are due January 31 of the following year (for the prior tax year). Payments received after January 31 accrue a 6% penalty plus 1% per month in interest. After July 1 the delinquency fee rises to a 12% penalty plus 1% monthly interest, and the taxing unit may add a 20% collection fee if turned over to an attorney. Split-payment plans are available in some counties; contact your county tax assessor-collector for options.

Texas Property Tax Calculator

The Texas property tax calculator gives you a fast, reliable estimate of your annual and monthly property-tax bill based on your home value and the state’s average effective rate — with an optional homestead exemption adjustment. Whether you are buying a home in Austin, comparing suburbs in the Houston metro, or trying to understand why your tax bill is so much higher than friends in other states, this tool puts the numbers in front of you in seconds.

How the calculation works

Texas is unique among large states because it has no state income tax — local governments fund schools, roads, and services almost entirely through property taxes. Every property is appraised at 100% of market value by the county appraisal district (CAD) and then taxed by a stack of local taxing units: the school district (ISD), the county, the city or municipality, and any applicable special districts such as a municipal utility district (MUD) or hospital district.

The effective rate used in this calculator is the standard comparison shortcut:

Effective rate = total tax paid ÷ market value

When this tool quotes Texas’s statewide average of 1.63%, it means that on average Texas homeowners pay $16.30 in annual property tax for every $1,000 of their home’s market value. The formula is:

Annual tax = home value × (effective rate ÷ 100)

Monthly tax is the annual figure divided by 12. Toggle the homestead checkbox to apply the $100,000 school district exemption and see your adjusted bill.

Worked example

Suppose you purchase a home in Travis County (Austin) for $450,000. Travis County’s average effective rate is approximately 1.83%.

Annual property tax (no exemptions): $450,000 × 0.0183 = $8,235
Monthly property tax: $8,235 ÷ 12 = $686.25
Tax per $1,000 of value: $18.30

Now apply the Texas homestead exemption. The $100,000 deduction applies to the school district taxable value, and the school district represents roughly 45% of the total bill:

School-share saving: $100,000 × 1.83% × 45% = $823.50 per year
Adjusted annual tax: $8,235 − $824 = approximately $7,411
Adjusted monthly tax: $618

Home value	Eff. rate	Annual tax	Monthly
$250,000	1.63% (state avg)	$4,075	$340
$350,000	1.63% (state avg)	$5,705	$475
$450,000	1.63% (state avg)	$7,335	$611
$450,000	1.83% (Travis)	$8,235	$686
$450,000	1.99% (Fort Bend)	$8,955	$746

All figures are calculated in your browser — nothing is uploaded or stored.

Why Texas property taxes are among the highest in the US

Texas’s effective rate of 1.63% ranks it in the top five states nationally — roughly 60% above the US average of around 1.00%. Several structural factors drive this:

No state income tax. With no personal income tax and a limited franchise tax, local governments must lean heavily on property taxes to fund the services that income taxes cover elsewhere.
School district funding. Texas funds most public-school spending through local ISD levies. A typical ISD rate runs $0.90–$1.20 per $100 of taxable value — often the single largest line on a Texas tax bill.
Rapid population growth. Texas cities have grown faster than almost anywhere in the country, putting pressure on infrastructure and school capacity, which is financed through the tax base.
Appraisal growth. Texas law caps homestead appraisal increases at 10% per year, but new buyers receive no cap protection in their first year, and hot markets mean large first-year jumps in appraised value.

County rates vary widely — here is what to check

Because every taxing unit in Texas sets its own rate, the effective rate printed on your notice can differ substantially from county averages. Before relying on any estimate, verify:

Your CAD appraised value — listed on the annual Notice of Appraised Value from your county appraisal district. You have until the deadline printed on the notice to protest if the value seems too high.
Your combined taxing-unit rates — the county tax assessor-collector typically publishes the full combined rate (ISD + county + city + MUD + hospital district + other) on your bill or online.
Exemptions you qualify for — homestead, over-65, disabled veteran (up to 100% exemption), and surviving-spouse exemptions can meaningfully reduce your taxable value. Apply through your county CAD.

This calculator gives you the right ballpark for budgeting, mortgage qualification, and cross-county comparison; your county appraisal district and tax assessor-collector give you the exact figure.