Texas has no state income tax, but property taxes are how local governments fund schools, roads, and emergency services — and for many new homeowners, the first bill is a surprise. This guide explains how Texas property taxes work, when they’re due, and what you can do to stay on top of them. Whether you’re buying in Houston, Dallas, Austin, San Antonio, Fort Worth, or El Paso, the basic process is the same.
How Texas property taxes are calculated
Your annual bill comes from two numbers multiplied together: your home’s taxable value and the tax rates set by the taxing units that cover your address.
1. Your appraised value
Each county has an appraisal district that estimates your property’s market value as of January 1 each year. It isn’t a sales price and it isn’t a bank appraisal — it’s a mass-appraisal estimate for tax purposes. Appraisal districts are separate from the tax office that sends your bill.
2. Exemptions that lower taxable value
If the home is your primary residence, you can apply for a homestead exemption, which reduces the value that gets taxed and may limit how fast your taxable value can grow. We cover the process in our guide to filing a Texas homestead exemption. Additional exemptions may exist for seniors, people with disabilities, and certain veterans.
3. Tax rates from multiple taxing units
Your address may be covered by a county, a school district, a city, and special districts (such as a municipal utility district, or MUD, common in newer subdivisions). Each sets its own rate. That’s why two similar homes in neighboring areas can have very different bills.
When Texas property taxes are due
- January 1: Your property is appraised as of this date.
- April–May: Appraisal notices are mailed, showing your proposed value.
- May 15 (or 30 days after your notice): General deadline to file a protest with your appraisal district.
- October–November: Tax bills are typically sent.
- January 31: Bills are generally due to avoid penalties and interest.
Dates can vary slightly by county, so always confirm with your local appraisal district and tax office.
Taxes are paid in arrears
Texas bills are paid after the tax year ends. At closing, the title company usually splits the current year’s taxes between buyer and seller based on the closing date, so you’ll see a line item for prorated taxes. After that, the first full bill that arrives is yours to handle.
Escrow vs. paying on your own
Many homeowners with a mortgage pay a portion of their taxes (and insurance) each month into an escrow account, and the servicer pays the bill when due. If you pay without escrow, set aside money monthly so the January bill isn’t a shock. Questions about how escrow is set up on your specific loan are best directed to a licensed mortgage professional, and the Consumer Financial Protection Bureau has neutral, plain-language explanations.
What new homeowners should do first
- Find your appraisal district account. Search your address on your county appraisal district’s website and confirm the owner name and mailing address.
- Update your mailing address. Tax bills and appraisal notices go to the address on file. Our change of address checklist helps you cover every account.
- File your homestead exemption. You can generally apply after you own and occupy the home as your primary residence.
- Budget for the bill. Add property taxes to your monthly housing budget along with insurance and maintenance. Our first-year maintenance checklist helps you plan for ongoing costs.
- Mark your calendar. Note the protest deadline in spring and the payment deadline in January.
How to protest your appraised value
If you believe your appraised value is too high, you have the right to protest it each year. The basic steps:
- Review your appraisal notice and the district’s evidence.
- Gather comparable sales, photos of condition issues, or repair estimates.
- File a protest with your appraisal district by the deadline, usually online.
- Attend an informal meeting or a formal hearing with the appraisal review board.
Protesting is your right and there’s no fee to file on your own. Be cautious of anyone charging upfront fees, and remember that outcomes are never guaranteed.
Frequently asked questions
Do I have to pay property taxes if I own my home outright?
Yes. Property taxes apply whether or not you have a mortgage. Without a loan, there’s no escrow, so you pay the tax office directly.
Why did my taxes go up even though I didn’t change anything?
Appraised values, tax rates, or expiring exemptions can all change. A homestead exemption may limit how much your taxable value can rise year to year, but it doesn’t freeze your bill.
Can I pay in installments?
Some taxing units offer installment options, especially for homeowners with certain exemptions. Check with your county tax office for what’s available.
What happens if I miss the January 31 deadline?
Penalties and interest begin to accrue, and unpaid taxes can eventually lead to collection action. If you’re struggling, contact your tax office early to ask about options.
Next steps
Property taxes are just one piece of settling into a new home. Utilities, internet, security, and insurance all need attention too — start with our Utilities guide and Home Warranty overview to round out your move-in plan.
Want everything in one place? Grab our free move-in checklist and keep your first year organized.
This article is for general educational purposes and is not tax, legal, or financial advice. Rules and deadlines vary by county; confirm details with your local appraisal district, tax office, or a qualified professional.