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MoneyMath

Texas Property Tax Calculator (2026)

Texas has no state income tax — but the 8th highest property tax in the US. Calculate your exact bill by county using real rates, 100% assessment, and 2026 homestead exemption.

🟢 Updated April 2026👤 Reviewed by MoneyMath Editorial⚡ Runs in your browser · no data sent
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Annual Property Tax — Harris County (Houston)
$6,150
$513/month escrow · 1.538% effective rate
Home value$400,000
Total exemptions− $100,000
Taxable value$300,000
Combined county tax rate2.050%
Annual tax$6,150
Show the formula
taxable value = home value − homestead − age65 exemption
annual tax = taxable × combined rate
Texas assesses at 100% of market value

Texas property tax: the famous tradeoff

Texas has no state income tax, but makes up for it with the 8th highest property tax in the nation. The average effective rate is ~1.74% of home value — about 2× the national average of 0.99%.

2026 homestead exemption

Texas increased the state-level homestead exemption to $100,000 (effective 2024, continuing 2026). This is a major reduction if you own and primarily reside in your home — ~$1,700/year tax savings at typical county rates. Additional local exemptions may apply.

10% annual cap on taxable value

Once you file homestead, your taxable value can only increase 10% per year, regardless of how much the market value grows. This protects long-term homeowners from explosive tax increases during boom markets. Critical for Austin/Travis County homeowners who bought pre-2020.

Age 65+ / disabled freeze

If you're 65+ or disabled, your school district taxes FREEZE at the level you hit when you qualified. Plus an additional $10,000 exemption. Massive benefit for retirees staying in place.

How to appeal your assessment

Texas allows protests between May 15 and the later of May 15 or 30 days after you receive notice. Steps:

  1. File Form 50-132 with your county appraisal district
  2. Schedule an informal protest meeting
  3. Bring recent sale comparables, photos of issues (roof, foundation)
  4. If informal fails, escalate to the ARB (Appraisal Review Board)
  5. If ARB fails, district court or SOAH arbitration

Texas success rate: 55-75% of informal protests get some reduction. Average savings: $400-$1,200/year.

Frequently Asked Questions

Why is Texas property tax so high?

Texas has no state income tax and no state property tax, so all funding for schools, counties, and cities comes from LOCAL property tax. That pushes effective rates to 1.7-2.5% of home value in most urban counties.

Is the homestead cap automatic?

No. You must FILE for the homestead exemption within the first year of owning. Once filed, the 10% cap kicks in at your second year. Never file? No cap, and you pay on full market value every year.

Does Texas have any income tax at all?

Zero state income tax on W-2 wages, 1099 income, investment income. The state constitution prohibits it unless voters approve a constitutional amendment (which has never passed).

Can I pay property tax monthly instead of annually?

Yes — via mortgage escrow (most common) or a direct pay agreement with your tax office. Many Texans pay via mortgage escrow without realizing it's a separate bill.