Texas Property Tax in 2026: Rates, Exemptions & Tax Estimator
2026 Update: Texas homestead exemption increased to $140,000
Approved by voters November 2025 (SB 4). Senior/disabled exemption now $60,000 (SB 23 / Proposition 11, approved November 2025). HB 8 school rate compression in effect. Protest deadline: May 15, 2026.
Texas Property Tax Estimator — 2026
Disclaimer: Estimates based on 2026 average effective rates. Actual bills vary by specific taxing jurisdictions, city, and school district. Sources: County appraisal districts, SmartAsset.
Updated March 2026 · Sources: TX Comptroller, WalletHub, County CADs · Reviewed by RelocateMeTX Editorial Team
Texas has NO state income tax. Your salary, bonuses, and investment income are free from state income tax.
The most celebrated fact about Texas taxes: there is no state income tax. For relocators from states like California (up to 13.3%), New York (up to 10.9%), or Illinois (4.95%), this creates an immediate and significant take-home pay increase the moment your paycheck switches to a Texas address.
But there is a trade-off. Texas funds public services through higher property taxes and sales taxes. Understanding this balance is essential for making informed housing decisions when you relocate — see our full guide to moving to Texas for the complete relocation picture. This guide covers effective property tax rates across every major Texas metro, explains the homestead exemption and protest process, and shows you the real math on whether moving to Texas saves you money overall.
The No-Income-Tax Advantage
Texas is one of nine U.S. states with zero state income tax, as confirmed by the Texas Comptroller. This applies to all income types: wages, self-employment income, capital gains, dividends, retirement distributions, and Social Security benefits. There is no bracket system, no surcharge on high earners, and no local income tax anywhere in the state.
For a household earning $150,000, moving from California to Texas saves roughly $10,000-$14,000 per year in state income tax alone. From New York, the savings run $8,000-$11,000. Even from a moderate-tax state like Illinois at 4.95%, you keep an extra $7,400 annually. These are real, recurring savings that compound year after year, affecting everything from your monthly cash flow to your long-term retirement savings rate.
The no-income-tax advantage is especially powerful for dual-income households, high earners in tech and finance, remote workers keeping a California or New York salary, retirees drawing pensions and 401(k) distributions, and anyone with significant capital gains from stock options or real estate sales.
What Is the Texas Property Tax Rate in 2026?
The average effective property tax rate in Texas is approximately 1.49% (WalletHub 2026), making it the 7th highest in the nation. Texas homeowners pay a median $4,232 per year based on a median home value of $283,800. However, rates vary dramatically by county — suburban counties surrounding Houston, Dallas, and Austin typically range from 1.8% to 2.5%. Texas has no state income tax, so property taxes are the primary funding mechanism for schools, roads, and local services.
2026 Texas Property Tax Rates by County
The table below shows effective property tax rates for the eight largest metro-area counties in Texas. These rates reflect the combined total of all taxing jurisdictions for a typical residential property within each county. The "Annual Tax" column shows the estimated bill on a $400,000 home after the $140,000 homestead exemption.
| County | Metro Area | Effective Rate | Annual Tax on $400K Home | Monthly Impact |
|---|---|---|---|---|
| Fort Bend County | Sugar Land, Katy | 2.48% | $6,448 | $537 |
| Tarrant County | Fort Worth, Arlington | 2.37% | $6,162 | $514 |
| Harris County | Houston, Pasadena | 2.31% | $6,006 | $501 |
| Collin County | Plano, Frisco | 2.19% | $5,694 | $475 |
| Dallas County | Dallas, Irving | 2.18% | $5,668 | $472 |
| Denton County | Denton, Lewisville | 2.05% | $5,330 | $444 |
| Travis County | Austin, Lakeway | 1.93% | $5,018 | $418 |
| Bexar County | San Antonio | 1.99% | $5,174 | $431 |
Calculation: ($400,000 − $140,000 homestead exemption) × effective rate. Verified March 2026 · Sources: County appraisal districts, SmartAsset, TX Comptroller
Notice the spread: Fort Bend County near Houston tops out at nearly 2.5%, while Bexar County in San Antonio sits just under 2.0%. That difference amounts to roughly $1,960 per year on a $400,000 home. Within the DFW metro, Tarrant County (Fort Worth side) runs higher than Dallas and Collin counties. When shopping for a home, always check the specific combined rate for your address, not just the county average.
The difference between Fort Bend County and Bexar County: $1,960/year on a $400K home
Always check your exact address — rates vary within the same county by school district and MUD
Lowest-Tax Rural Counties in Texas
If you are considering rural property or a retirement homestead far from the metros, a few Texas counties offer remarkably low property tax rates. These areas have minimal services and very low home values, which keeps the tax burden small in absolute terms.
| County | Region | Effective Rate |
|---|---|---|
| Sabine County | East Texas (Toledo Bend) | 0.64% |
| Crockett County | West Texas (Ozona) | 0.66% |
| Terrell County | Far West Texas (Sanderson) | 0.67% |
These counties are very rural with limited employment, healthcare, and shopping options. Rates are low partly because home values and service demands are low.
Income Tax vs Property Tax — The Real Math
The most common question relocators ask is: "Does the income tax savings actually outweigh the higher property taxes?" The answer depends on your income level, the state you are leaving, and the price of the home you buy in Texas. Let us break down the math for three income levels across four common origin states.
The table below compares the income tax you currently pay in your origin state against the property tax you would owe on a $400,000 home in Texas (using a 2.2% average effective rate of $8,800/year). The net savings column shows whether you come out ahead or behind after the trade-off.
| Origin State | Income Tax Rate | Tax on $150K | TX Property Tax | Net Savings |
|---|---|---|---|---|
| California | 7.0-9.3% | $10,500-$14,000 | $8,800 | +$1,700-$5,200 |
| New York | 6.0-8.8% | $9,000-$13,200 | $8,800 | +$200-$4,400 |
| Illinois | 4.95% | $7,425 | $8,800 | -$1,375 |
| Maryland | 5.0-5.75% | $7,500-$8,625 | $8,800 | -$175-$1,300 |
Illinois and Maryland relocators may pay slightly more at $150K. At higher incomes, savings tilt strongly toward Texas.
The pattern is clear: the higher your income, the more you save in Texas. At $75,000 household income, the math is roughly break-even for California relocators and slightly negative for Illinois and Maryland relocators. At $150,000, California and New York relocators come out ahead by $1,000-$5,000 per year. At $300,000, the savings become dramatic — California relocators keep $15,000-$20,000 more per year even after paying Texas property tax on a $600,000 home.
One important nuance: this table only compares state income tax against Texas property tax. Relocators from Illinois and New York often save on property tax as well, since those states also have high property tax rates (Illinois averages 2.0-2.5%, New York averages 1.4-2.0%). When you factor in the property tax difference between your origin state and Texas, the net picture almost always favors Texas for households earning above $100,000.
The bottom line: if you earn six figures and are coming from a high-tax state, you will almost certainly save money overall in Texas. The income tax elimination more than offsets the higher property tax in most realistic scenarios.
File your homestead exemption by April 30 to save $1,200-$1,800/yr on school taxes. You can file up to 2 years late and receive back credits.
Homestead exemption — removed from your taxable value for school district taxes
Homestead Exemption — How to Cut Your Tax Bill
If you buy a home in Texas, the homestead exemption is the single most important tax benefit available to you. It reduces your property's taxable value and can save you thousands of dollars per year. Here is exactly how it works.
The mandatory statewide homestead exemption removes $140,000 from your home's taxable value for school district taxes. On a $400,000 home, this means you only pay school taxes on $260,000 of value — saving roughly $1,400-$1,800 per year depending on your school district's tax rate. This exemption was raised to $100,000 in 2023 and then to $140,000 in 2025 (SB 4, voter-approved via Proposition 13 in November 2025), and it applies to every homeowner in the state.
Beyond the school district exemption, many counties and cities offer their own additional homestead exemptions. These typically range from $5,000 to $20,000 off your taxable value for county and city taxes. Dallas County, for example, offers a percentage-based exemption in some jurisdictions. Collin County and Tarrant County offer similar local exemptions. The specific amounts vary by your exact address, so check with your county appraisal district after you close on your home.
Over-65 and Disability Exemptions
Texas provides additional exemptions for homeowners age 65 or older: an extra $60,000 off the school district taxable value plus a permanent freeze on the dollar amount of your school taxes. This means even if your home's appraised value rises, your school tax bill never increases. Many counties and cities offer their own over-65 exemptions and tax freezes on top of the state-mandated one.
Disabled veterans can qualify for exemptions ranging from $5,000 to a full 100% exemption depending on disability rating. A veteran with a 100% disability rating pays zero property tax on their homestead — a substantial benefit that can save $8,000-$15,000 annually on a typical Texas home.
How to Apply
You apply for the homestead exemption through your county appraisal district (for example, the Dallas Central Appraisal District for Dallas County, or the Collin Central Appraisal District for Collin County). The deadline is April 30, but Texas law allows you to file up to two years late and receive back credits for the missed years. Once you file, the exemption remains in place for as long as you own and occupy the home as your primary residence — you do not need to re-apply each year. If you move, you will need to file a new application at your new county appraisal district.
How to Protest Your Texas Property Tax in 2026
Every year, your county appraisal district determines the appraised value of your home. If the appraised value seems too high, you have the right to protest — and you should. Only 17–32% of Texas homeowners protest, leaving an estimated $1.2 billion in annual savings unclaimed. Among those who do protest, 60–80% achieve some reduction, with average savings of $600–$2,250 per year.
Key 2026 protest data: The protest deadline is May 15, 2026, or 30 days after your Notice of Appraised Value — whichever is later. HB 1533 (effective 2025) introduced important reforms: mandatory remote hearing options, extended subpoena notice periods, and improved data transparency requirements for appraisal districts. These reforms make the process more accessible for homeowners who previously found the system difficult to navigate.
-
Review your Notice of Appraised Value
Compare your home's proposed value against recent comparable sales in your neighborhood (January-April)
-
File a protest by May 15
Most counties allow free online filing — no special forms required, just a statement of disagreement
-
Gather evidence
Comparable sales data, property condition photos, and any independent appraisals strengthen your case
-
Attend hearing or settle informally
Most protests are resolved before the formal ARB hearing — present your evidence clearly and concisely
Each year between January and April, your county appraisal district mails a Notice of Appraised Value. Compare it against recent sales of similar homes in your neighborhood. You must file a formal protest by May 15 or within 30 days of receiving your notice. Most counties allow you to file online for free. The strongest evidence includes comparable sales (homes similar to yours that sold for less than your appraised value), photos documenting condition issues, and independent appraisals.
Step-by-step protest process:
- Pull your Notice of Appraised Value — mailed by your county appraisal district January–April. Check the proposed value against recent sales (DCAD for Dallas, Collin CAD for Collin, HCAD for Harris).
- File your protest online — deadline May 15 or 30 days after notice. It costs nothing. Simply state "I disagree with the appraised value."
- Request an informal settlement — most districts offer this before the formal ARB hearing. Bring 3–5 comparable sales printed from Redfin or Zillow.
- Attend the Appraisal Review Board (ARB) hearing — a 15–20 minute presentation. You present evidence; the appraisal district presents theirs. The ARB decides.
- Accept or escalate — if the ARB ruling is unsatisfactory, you can appeal to binding arbitration ($500–$1,000 filing fee, recoverable if you win) or district court.
Hiring a Property Tax Consultant
If the process feels overwhelming, you can hire a property tax protest firm to handle everything on your behalf. These companies typically charge a contingency fee of 40–50% of the first year's tax savings — meaning you pay nothing if they do not reduce your bill. For a homeowner who gets a $30,000 reduction in appraised value (saving roughly $660 in annual taxes), the consultant fee would be $264–$330. Many homeowners consider this worthwhile for the convenience and expertise. HB 1533 also increased data transparency requirements, meaning protest firms now have better access to district appraisal data to build stronger cases.
Texas Property Tax Calendar: Key Dates for New Homeowners
Texas runs one annual property-tax cycle, and a missed date can cost you an exemption or trigger penalties. The short version for new homeowners: bills are mailed in October, due by January 31, and delinquent on February 1. Here is the full year at a glance.
| When | What happens | What to do |
|---|---|---|
| January 1 | Your home's taxable value is assessed as of this date. | Own and occupy by Jan 1 to qualify for that year's homestead exemption. |
| January–April | Your county appraisal district mails the Notice of Appraised Value. | Compare it against recent comparable sales; note any over-assessment. |
| April 30 | Homestead exemption filing deadline. | File with your CAD — you can still file up to two years late for back credits. |
| May 15 | Protest deadline (or 30 days after your notice, whichever is later). | File a protest online — it is free — if your appraised value looks too high. |
| October | Tax bills are mailed by your taxing units. | Confirm your exemptions are applied and budget for the bill. |
| January 31 | Payment due date for the prior tax year. | Pay in full, or arrange an installment plan if you qualify. |
| February 1 | Unpaid taxes become delinquent. | Penalty + interest begin: 6% in February, rising to 12% by July, plus 1%/month interest. |
Sources: Texas Comptroller of Public Accounts, Property Tax Assistance Division (Texas Tax Code §§11.13, 31.01–31.02, 33.01); county appraisal districts. Verified May 2026.
Impact on Renters
If you are renting in Texas rather than buying, you do not receive a property tax bill directly. However, property taxes still affect you. Landlords build property tax costs into their rent calculations, and in the DFW metropolitan area, an estimated $200-$350 per month of a typical rent payment is directly attributable to the landlord's property tax obligation. In high-tax areas like Fort Bend County or Tarrant County, this figure can be even higher.
As a renter, you cannot file a homestead exemption or protest your landlord's property tax assessment. You have no direct control over this portion of your housing cost. If your landlord's appraised value increases significantly, that increase will likely be passed through to you at your next lease renewal in the form of higher rent.
The silver lining for renters: you still benefit fully from the no-state-income-tax advantage. Every dollar of your wages, freelance income, or investment gains is free from state income tax regardless of whether you rent or own. For many renters — especially those earning above $100,000 — the income tax savings far exceed the property tax portion embedded in their rent.
$200-$350/month of a typical DFW rent payment goes toward the landlord's property tax obligation
Renters can't file homestead exemptions, but the no-income-tax advantage still applies in full
Sales Tax
Texas state sales tax is 6.25%, and most cities add 2% for a combined rate of 8.25% in the DFW area. This applies to most goods but not groceries (unprepared food) or prescription medications. Prepared food, restaurant meals, clothing, electronics, and most retail purchases are subject to the full rate. Texas also charges sales tax on some services, but not on professional services like legal or medical fees.
For a typical household, sales tax costs $2,000-$4,000 per year depending on spending habits. This is another component of the no-income-tax trade-off, but it is generally a much smaller factor than property tax in the total burden calculation.
Total Tax Burden Comparison
Despite higher property taxes and sales taxes, most relocators from high-income-tax states see a net tax reduction in Texas. WalletHub ranks Texas 7th highest nationally for overall state and local tax burden (2026). The key factor is your income: the higher it is, the more you benefit from zero income tax. A household earning $200,000 moving from California to Texas and buying a $450,000 home typically saves $6,000-$12,000 per year in total state and local taxes, even after accounting for higher property tax and sales tax.
Use our Salary Comparison Calculator to model your exact scenario with your income, origin state, and target home price.
Texas Property Tax vs. Other States: How Much Do You Really Save?
The honest answer is: it depends on your income. Here's the real math for three common relocation scenarios, all based on a household earning $150,000 and buying a $400,000 home in a 2.18% Dallas County area (annual property tax: ~$5,668 with $140K exemption):
California → Texas: California income tax on $150K = approximately $10,500–$14,000/year (7.0–9.3% rate). Texas property tax on a $400K home in Dallas County ≈ $5,668/year. Net annual savings: $4,832–$8,332. Over 10 years, this is $48,000–$83,000 in compounded savings — even after paying higher Texas property taxes. Additionally, California's property tax rate (Prop 13 average ~0.75%) would cost ~$3,000/year on a $400K home vs Texas's $5,668, meaning you pay about $2,668 more in property tax. But you save $10,500–$14,000 in income tax. Net benefit to Texas: $7,832–$11,332/year.
New York → Texas: NY state income tax on $150K = approximately $8,600–$11,700/year (combined state + NYC). Net savings moving to Texas: $2,932–$6,032/year after property tax differential. NY has high property taxes too (1.4–2.0%), so the property tax gap is smaller than California, but still meaningful at scale.
Illinois → Texas: Illinois has a flat 4.95% income tax AND one of the highest property tax rates in the nation (2.0–2.5% effective). A $150K Illinois earner pays ~$7,425 in state income tax. Moving to Texas saves that $7,425, but Texas property tax (~$5,668 for Dallas County, $140K exemption) vs Illinois on a $400K home (~$8,000–$10,000/year) means you actually pay less property tax in Texas too. Total benefit: $9,000–$12,000/year — Illinois is one of the best-case scenarios for Texas relocation savings.
Calculations based on 2026 state tax rates. Individual results vary by income level, filing status, and local rates. Consult a CPA for personalized analysis.