How Texas Property Tax Works in 2026
Texas has the 6th-highest property tax rates in America. Unlike most states, Texas has no state-level property tax — all property tax is levied locally by counties, cities, school districts, and special districts. Your effective rate is the sum of all overlapping taxing jurisdictions.
For 2026, Texas homeowners benefit from major reforms approved by voters in November 2025:
- $140,000 homestead exemption (raised from $100,000 via SB 4/Prop 13)
- $60,000 senior/disabled exemption (raised from $10,000, combined $200K)
- School M&O rate cut of $0.0331 per $100 (HB 8, temporary one-year)
- $125,000 business personal property exemption (HB 9)
- 10% homestead cap remains in effect
Texas Property Tax Rates by County (2026)
| County | Effective Rate | Notes |
|---|---|---|
| El Paso | 2.42% | Among highest in TX |
| Fort Bend | 2.40% | Sugar Land, high MUDs |
| Tarrant (Fort Worth) | 2.30% | FW, Arlington area |
| Brazoria | 2.30% | Houston suburbs |
| Denton | 2.25% | Denton, Lewisville |
| Harris (Houston) | 2.20% | City of Houston |
| Collin (Plano) | 2.20% | Plano, Frisco, McKinney |
| Williamson | 2.20% | Round Rock, Cedar Park |
| Dallas | 2.18% | City of Dallas |
| Montgomery | 2.10% | The Woodlands, Conroe |
| Travis (Austin) | 2.10% | City of Austin |
| Galveston | 2.00% | Coastal county |
| Bell (Killeen) | 1.90% | Killeen, Temple |
| McLennan (Waco) | 1.85% | Central Texas |
| Bexar (San Antonio) | 1.75% | Lowest among major metros |
The $140,000 Homestead Exemption (NEW 2026)
Texas voters approved Proposition 13 in November 2025, raising the mandatory school district homestead exemption from $100,000 to $140,000. This is the largest property tax cut in Texas history.
How it works: The $140,000 reduces your home's taxable value for school district taxes specifically (school taxes are typically 50-60% of your total bill). On a $400,000 home with a school district rate of 1.10%, the exemption saves you approximately $1,540/year ($140,000 × 1.10%).
Stacking Exemptions
- Homestead Exemption: $140,000 (school district only)
- Senior 65+ or Disabled: Additional $60,000 (school district)
- Combined for Seniors: $200,000 total school exemption
- County exemptions: $3,000-$50,000 (varies by county)
- City exemptions: $5,000-$25,000 (optional, varies)
- Disabled veteran (100%): Complete property tax exemption
The 10% Homestead Cap: How Long-Term Owners Save
Once you've had an active homestead exemption for one year, Texas caps the annual increase in your taxable value at 10%, regardless of market value increases. This cap is significantly more generous than California's Prop 13 (2% cap) but provides real value in fast-appreciating markets like Austin, Frisco, and parts of Houston.
Texas vs Other States: 2026 Property Tax Comparison
| State | Avg Effective Rate | $400K Home Annual Tax |
|---|---|---|
| New Jersey | 2.49% | $9,960 |
| Illinois | 2.08% | $8,320 |
| Texas (no homestead) | 1.80% | $7,200 |
| Texas (with $140K homestead, $400K home) | ~1.30% | ~$5,200 |
| New York | 1.40% | $5,600 |
| California (new buyer w/Prop 13) | 1.25% | $5,000 |
| Florida (with homestead) | 0.83% | $3,320 |
Critical Texas Property Tax Deadlines
- January 1: Property tax appraisal date
- April-May: Notice of Appraised Value mailed
- April 30: Deadline to file Form 50-114 (homestead exemption)
- May 15: Deadline to file Notice of Protest
- October: Tax bills mailed
- January 31 (next year): Payment due in full
Should You Protest Your Property Tax Appraisal?
Approximately 70% of homeowners who formally protest their property tax appraisal receive a lower valuation. Considering an average reduction of 5-15%, this is one of the highest-ROI activities for Texas homeowners.
Frequently Asked Questions
For 2026, Texas voters approved SB 4/Proposition 13 in November 2025 raising the school district homestead exemption from $100,000 to $140,000. Seniors 65+ and disabled homeowners receive an additional $60,000, for a combined $200,000 school district exemption. The exemption requires filing Form 50-114 with your county appraisal district by April 30.
Texas has the 6th-highest property tax rates in the US, averaging 1.60%-2.00% statewide. Effective rates vary by county: Travis (Austin) 2.10%, Harris (Houston) 2.20%, Dallas 2.18%, Bexar (San Antonio) 1.75%, Fort Bend 2.40%, El Paso 2.42%. School district taxes typically account for 50-60% of your total property tax bill.
The Texas Constitution prohibits a state-level property tax. Instead, property tax is administered entirely at the local level by counties, cities, school districts, and special districts. This decentralized system means rates vary significantly by location. Because Texas has no state income tax, property tax revenue funds schools, public safety, and local government.
Once you have an active homestead exemption, Texas law caps the annual increase in your home's taxable value at 10% (plus the value of new improvements). For example, if your home's market value jumps from $400K to $480K (a 20% increase), your taxable value can only increase 10% to $440K — saving you tax on the $40K difference.
Sources & Methodology
- Texas Tax Code Chapter 11 — Property Tax Exemptions
- SB 4 / Proposition 13 (November 2025) — $140K homestead exemption
- SB 23 (2025) — $60K senior/disabled exemption
- HB 8 (2025) — School M&O rate compression
- HB 9 (2025) — Business personal property exemption
- Texas Comptroller of Public Accounts — Statewide guidance
Calculator methodology and county rates reviewed by Benjamin Thomas, CPA, MST. Rates verified against Texas Comptroller publications and county appraisal districts, January 2026.