Texas Property Tax

Effective Property Tax Rate

157.87%

Median Annual Tax

$4,111

Median Home Value

$260,400

Texas Property Tax Overview

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Key Statistics (2026)

Metric	Value
Median home value (statewide)	$260,400
Effective property tax rate (state average)	1.58 %
Median annual property tax (statewide)	$4,111
National average effective property tax rate (2026)	0.97 %
Texas' rate relative to the national average	63.14 % higher
Rank among U.S. states/territories (effective rate)	#46 of 52

Source: According to the U.S. Census Bureau's American Community Survey (ACS) (5‑year estimates, 2023).

Example Property Tax Bills

Using the average effective Texas property tax rate of 1.58 %:

Home value	Approximate annual Texas property tax
$250,000	$3,947
$500,000	$7,893

Calculations are based on the statewide average rate; actual bills may differ because local taxing authorities set their own rates.

Variation by County and Local Jurisdictions

Texas does not have a state‑level property tax. The Texas property tax rate is determined by counties, cities, school districts, and other special districts.
Effective rates can range from under 1 % in some rural counties to over 2 % in certain urban or high‑service‑area districts.
Homeowners should consult the appraisal district for the specific county in which the property is located to obtain the precise tax rate.

Comparison to the National Average

The national average effective property tax rate (0.97 %) is lower than Texas’ 1.58 % rate.
Texas’ rate is 63.14 % above the national average, placing the state near the higher end of the national distribution (ranked #46 out of 52 states and territories).

Considerations for Retirees and Landlords

Group	Factual Implications of Texas Property Tax
Retirees	• Higher effective tax rates can increase the cost of homeownership compared with many other states.<br>• Texas does not have a state income tax, which may offset property‑tax expenses for some retirees.<br>• Property tax relief programs (e.g., homestead exemptions, over‑65 exemptions) are available in many counties and can reduce the taxable value of a primary residence.
Landlords	• Property tax is assessed on the full market value of the rental property; the rate does not differ for owner‑occupied versus rental units.<br>• High effective rates can affect cash‑flow calculations for rental investments.<br>• Landlords may pass a portion of the tax expense to tenants through rent, subject to local lease regulations.

All statements are based on publicly available data and do not constitute financial advice.

Frequently Asked Questions

1. How is the Texas property tax calculated?
The tax bill is calculated by multiplying the taxable value of the property (usually the market value minus any applicable exemptions) by the combined tax rate set by the local taxing entities (county, city, school district, etc.). The result is the annual property tax in Texas.

2. Can I lower my property tax bill?
Homeowners may qualify for exemptions that reduce the taxable value, such as the homestead exemption, over‑65 exemption, or disability exemption. Additionally, property owners can protest the appraised value with the local appraisal district if they believe it is inaccurate.

3. Do property tax rates change frequently? |
Local governing bodies (e.g., county commissioners, city councils, school boards) set tax rates annually through their budgeting processes. Rates can therefore change from year to year, and any adjustments are reflected in the next tax cycle.

This article presents data from the U.S. Census Bureau’s American Community Survey (ACS) and reflects the most recent 2023 estimates. All figures are presented for informational purposes only.

Neighboring States