Texas Property Taxes by County: What Buyers Actually Pay
I am Anthony Ferrando, a mortgage loan originator based in Austin, and one of the questions I hear most often from buyers relocating to Texas from other states is some version of: “I heard Texas has high property taxes. How high are we talking?” The answer depends entirely on which county you are buying in, and the differences across Texas metros are large enough to meaningfully change your monthly housing cost. A home that looks affordable on the purchase price can carry a substantially higher payment than a comparable home elsewhere once the tax bill is factored in.
Here is a county-by-county comparison across the major Texas markets, along with what it means for your actual monthly payment.
Why Texas Property Taxes Are High
Texas has no state income tax. Local governments, including school districts, counties, cities, and special utility districts, fund most of their operations through property taxes. The result is a tax structure that places a heavier burden on property owners than most other states. According to multiple national real estate data sources, Texas consistently ranks in the top five states for effective property tax rates.
The “effective rate” is what matters practically. It is the total tax bill divided by the market value of the property. Published nominal rates are set by each taxing entity and stack on top of one another. A property in a typical Texas suburb might fall under a school district levy, a county levy, a city levy, and one or more special district levies simultaneously.
Effective Property Tax Rates by Major Texas County
The figures below are approximate effective rates based on recent data. Actual rates vary by specific location within each county and are subject to annual changes in both the appraisal value and the tax rates set by each jurisdiction.
Travis County (Austin metro)
Travis County’s effective rate generally runs between 1.7% and 2.2% depending on the municipality and special districts involved. Properties inside Austin city limits tend to carry the full city levy on top of the county and school district charges. Communities like Round Rock and Cedar Park that fall partially inside Travis County but are served by Williamson County-adjacent school districts can see variation at the boundary.
At a $500,000 appraised value and an effective rate of 1.9%, the annual tax bill is approximately $9,500, or roughly $792 per month added to principal and interest.
Williamson County (Round Rock, Cedar Park, Georgetown, Leander)
Williamson County effective rates typically run 1.9% to 2.3%. Rapid growth in this county has brought infrastructure investment and new special districts, which layer additional levies onto the base school and county rates. Georgetown and Liberty Hill in particular have seen higher effective rates in newer subdivisions due to municipal utility district (MUD) and public improvement district (PID) assessments.
Buyers targeting newer construction in Williamson County should specifically ask the builder or title company for the full tax rate breakdown by taxing entity before closing. A nominal rate sheet from a builder does not always capture all active assessments.
Harris County (Houston metro)
Harris County has some of the highest effective property tax rates in Texas, typically ranging from 2.0% to 2.5% and in some areas higher. The Houston Independent School District alone carries one of the higher school tax levies in the state. Special districts are common throughout the Houston suburbs.
On a $350,000 home with an effective rate of 2.2%, the annual bill is approximately $7,700, or about $642 per month.
Dallas County
Effective rates in Dallas County typically fall in the 1.8% to 2.3% range. The City of Dallas carries a city levy on top of the Dallas ISD or other school district rate. Inner suburbs like Irving, Garland, and Grand Prairie have their own municipal levies that affect total effective rates.
Tarrant County (Fort Worth, Arlington)
Tarrant County effective rates run approximately 2.0% to 2.5%. Fort Worth ISD and other school districts contribute heavily to the total. This county consistently ranks among the higher-rate large counties in the state.
Collin County (Plano, Frisco, McKinney, Allen)
Collin County is often cited as having more favorable rates compared to other major Texas metros, generally running 1.5% to 2.1% effective. Higher home values in Frisco, Plano, and Allen mean the actual dollar amounts can still be substantial even at a lower rate. Plano ISD and Frisco ISD are both well-funded school districts, which is reflected in the school tax component.
Bexar County (San Antonio)
Effective rates in Bexar County typically run 1.8% to 2.3%. San Antonio’s growth corridor along Loop 1604 and communities like Boerne (which sits in Kendall County) and New Braunfels (Comal County) have different rate structures than Bexar County proper. Kendall and Comal counties tend to have lower effective rates than Bexar County.
Denton County (Denton, Flower Mound, Southlake, Argyle)
Denton County effective rates vary widely, from around 1.6% in established areas to 2.2% or higher in newer developments with active special districts. Southlake carries a high appraised value but a relatively moderate effective rate. Argyle and other high-growth areas have seen MUD and PID charges increase the effective rate in new subdivisions.
The Homestead Exemption and What It Actually Saves You
Texas law provides a homestead exemption for primary residences. As of 2023, the state legislature increased the school district homestead exemption to $100,000 off the appraised value. This reduces the taxable base for the school district portion of your bill, which is typically the largest single component.
On a $400,000 appraised value with a school district levy of 1.0%, the exemption reduces your school district tax from $4,000 to $3,000 annually, saving $1,000 per year or roughly $83 per month. The actual savings depend on your school district’s levy rate and your property’s appraised value.
Additional exemptions are available for homeowners who are 65 or older or who have a qualifying disability. These include a tax ceiling that prevents the school district portion of the tax from increasing year over year as long as you remain in the home. For buyers who are approaching that age threshold, this ceiling can be a meaningful long-term planning consideration.
To receive the homestead exemption, you must apply through your county appraisal district. The deadline is generally April 30 of the year following the year you take ownership and move in. Applications are available on each county’s appraisal district website.
How Property Taxes Affect Your Mortgage Payment
Your mortgage lender will almost certainly require an escrow account for property taxes if you put less than 20% down, and many lenders require it regardless of down payment. The lender collects one-twelfth of your estimated annual property tax bill each month, holds it in escrow, and pays the county on your behalf when the bill comes due.
This means property taxes are not a separate annual bill you pay out of pocket. They are built directly into your monthly mortgage payment as part of the PITI structure: principal, interest, taxes, and insurance. When comparing homes in different counties or school districts, the full PITI payment tells a more complete story than the principal and interest alone.
On a $450,000 home in Travis County with an effective rate of 1.9%, the monthly tax escrow is roughly $712. On the same price home in a Harris County suburb at 2.3%, it is roughly $862. That $150-per-month gap adds up to $1,800 per year and nearly $54,000 over a 30-year loan, all else being equal.
Protesting Your Appraisal
Texas homeowners have the right to protest their property’s appraised value annually through the county appraisal district. The protest window opens in May after appraisal notices go out. A successful protest reduces the taxable base, which directly reduces your tax bill.
Many homeowners handle protests themselves using comparable sales data. Third-party protest services are also available and typically work on a contingency basis, taking a percentage of any savings they achieve. For properties with significant year-over-year appraisal increases, protesting is worth the time investment.
Frequently Asked Questions
Which Texas county has the lowest property tax rate?
Among the major metro counties, Collin County and Kendall County (Boerne area) tend to have lower effective rates than Houston-area and Fort Worth-area counties. Rural and less densely developed counties often have lower rates as well, though the comparison is most relevant when looking at communities where you would actually want to buy. Rates within any given county also vary significantly depending on the school district and any special utility districts that apply to your specific parcel.
How much are property taxes on a $400,000 home in Austin?
In Travis County at an effective rate of approximately 1.9%, the annual property tax on a $400,000 home would be roughly $7,600, or about $633 per month in escrow. After the $100,000 homestead exemption reduces the school district taxable value, the net bill will be somewhat lower. The exact amount depends on your specific location’s school district, city, and any applicable special districts. Your title company will provide a detailed tax estimate during the purchase process.
Do I have to pay property taxes every month in Texas?
Texas property tax bills are issued annually and are due by January 31 of the following year (with a discount for early payment in October through December). However, if your mortgage requires an escrow account, your lender collects one-twelfth of the estimated annual bill each month as part of your payment and pays the county when the bill comes due. From your perspective, you pay monthly through escrow even though the county processes it annually.
What is the Texas homestead exemption and how do I apply?
The Texas homestead exemption reduces the taxable value of your primary residence for property tax purposes. The school district exemption is $100,000 as of 2023. To receive the exemption, you must apply through your county appraisal district by April 30 of the year following when you moved in and established the home as your primary residence. Applications are available on the appraisal district website for your county. The exemption is not automatic and does not transfer from the previous owner.
Can I protest my property tax appraisal in Texas?
Yes. Texas homeowners can protest their appraised value annually. Appraisal notices typically arrive in April or May, and the protest deadline is 30 days after the notice date or May 15, whichever is later. You can protest yourself using comparable sales from the prior year or hire a property tax protest firm, many of which work on contingency. A successful protest reduces your taxable value and lowers your tax bill for that year.
Are new construction homes taxed differently in Texas?
New construction homes are often appraised at or near the purchase price in the first year, but buyers in newer subdivisions should also check for municipal utility district (MUD) or public improvement district (PID) levies that fund infrastructure. These special district charges can add 0.5% to 1.0% or more to the effective tax rate on top of the base county and school district levies. Ask for the full tax rate certificate from the seller or builder before closing so you know the complete rate structure.
If you are comparing homes in different Texas counties and want to see how the tax difference translates into your monthly payment, reach out directly and I can put together a side-by-side PITI comparison for any properties you are considering.
Anthony Ferrando | Mortgage Loan Originator | NMLS# 1919613 | Ferrando Financial LLC NMLS# 2403080 | Licensed in Texas. This is not a commitment to lend. Loan approval is subject to credit, income, and property qualifications. Property tax rates and appraisal values are estimates based on publicly available data and are subject to annual change. Consult your county appraisal district and a qualified tax advisor for information specific to your property. Equal Housing Lender.
