Texas is one of only a handful of US states with no statewide personal income tax, and that choice has a trade-off: local governments in Texas lean heavily on the ad-valorem property tax to fund schools, counties, cities, roads, emergency services and community colleges. The result is that Texas homeowners pay some of the highest property tax bills in the nation — an effective rate that averages roughly 1.6% to 1.9% of a home's market value, and climbs above 2.5% in parts of the Houston and Dallas metroplexes. This calculator turns your county appraisal into the two numbers you actually care about: the annual bill and the monthly escrow your lender will collect.
Texas also assesses homes at 100% of market value (unlike Florida or California, which cap or ratio the assessed figure), and it grants a $40,000 school-district homestead exemption to anyone who uses the home as their primary residence. Slide the inputs and every figure below updates instantly — including the dollar amount that exemption saves you each year.
How to Use
- Enter the Appraised Home Value — the figure on your county appraisal district's notice, or the purchase price if you just bought. Texas appraisal districts value the home at full market value on January 1 of each tax year.
- Set the Effective Tax Rate. If you don't know yours, start with 1.8% for an average Texas home. You can look up your combined school, county, city and special-district rate on the Texas Comptroller's Truth in Taxation website, or read it off your last tax bill (divide total tax by appraised value).
- Adjust the Homestead Exemption. The default $40,000 applies to owner-occupied primary residences and reduces only the school-district portion of the bill. If this is a rental, vacation home, or you have not filed Form 50-114, set the exemption to $0.
- Pick a Projection Horizon to total the next 1, 3, 5, or 10 years of tax at the current rate. Use this when budgeting for an escrow account or comparing two homes side by side.
The result card shows the taxable value after the exemption, the annual tax, the monthly escrow, the effective rate, the annual homestead savings, and the multi-year total.
How Texas Property Tax Actually Works
There is no state-level property tax in Texas. Instead, every parcel is taxed by up to a dozen overlapping local jurisdictions: a school district, the county, a city, and a patchwork of junior college, hospital, flood control, emergency services and municipal utility districts. Each taxing unit adopts its own tax rate in the late summer, after the appraisal district publishes its values. The combined rate you see on your bill is the sum of all those mill levies, usually expressed in dollars per $100 of assessed value.
Because Texas assesses at 100% of market value, the math is refreshingly direct:
Annual tax = (Appraised value − Homestead exemption) × Combined effective rate ÷ 100
Worked example on a $300,000 home at the statewide 1.8% average with no exemption: 300,000 × 0.018 = $5,400 per year, or $450 per month in escrow. Add the $40,000 school homestead exemption and the taxable base drops to $260,000, cutting the bill to $4,680 per year ($390 per month) — an immediate $720 annual saving just for filing the homestead application.
Two Texas-specific quirks matter. First, the homestead exemption applies only to the school-district tax in the simple model used here; county and city optional exemptions vary by jurisdiction, so treat the result as a close estimate rather than an audit-grade bill. Second, Texas caps the school homestead assessment growth at 10% per year once you qualify (Tax Code Sec. 23.23), which this calculator does not compound — it holds the value flat so you can stress-test a single year.
Examples
Example 1 — Average Texas starter home. A couple buys a $300,000 condo in San Antonio, files the $40,000 homestead exemption, and lives in a district with a combined 1.8% effective rate. Taxable value is $260,000; annual tax is $4,680, monthly escrow $390, and the homestead exemption saves them $720 per year.
Example 2 — Higher-tax Harris County. A family in west Houston owns a $550,000 home at a combined 2.4% effective rate, with the $40,000 homestead. Taxable value is $510,000; annual tax is $12,240, or $1,020 per month — a reminder that a high nominal home value in Texas carries a heavier carrying cost than the sticker price suggests.
Example 3 — Rental property with no exemption. An investor buys a $200,000 duplex in Fort Worth at 2.0%. Because it is not a primary residence, the homestead exemption is $0. Annual tax is $4,000, or $333 per month; the calculator flags that no exemption is being applied, so the investor can price rent coverage accordingly.
Example 4 — Million-dollar home (boundary). A $1,000,000 Austin home at 2.1% with the $40,000 homestead yields a taxable base of $960,000 and an annual bill of $20,160, or $1,680 per month — roughly $20,000 a year, before insurance. Running this number before you offer prevents a budget shock after closing.
FAQ
How is Texas property tax calculated?
Multiply the appraised value by the combined local effective tax rate, then subtract the value of any exemptions. In formula terms: annual tax = (appraised value − homestead exemption) × effective rate ÷ 100. Texas assesses homes at 100% of market value, so there is no assessment-ratio conversion the way there is in Florida or New York.
What is the average property tax rate in Texas?
The statewide average effective rate is roughly 1.6% to 1.9% of appraised value. Major metros run higher — Harris, Dallas, Tarrant and Bexar counties often land between 2.0% and 2.5% — while rural West Texas counties can come in under 1.3%. Your exact rate is the sum of school, county, city and special-district levies on your appraisal notice.
How much is the Texas homestead exemption?
The statewide school-district homestead exemption is $40,000 off the appraised value for an owner-occupied primary residence. Many counties and cities offer additional optional exemptions of $5,000 to $20,000, and disabled veterans, seniors and surviving spouses qualify for larger exemptions. File Form 50-114 with your county appraisal district; it takes effect the tax year after you file.
Do renters pay property tax in Texas?
Renters do not send a property tax bill themselves, but landlords pass the tax into rent. On a $200,000 rental duplex at 2.0%, the owner pays about $4,000 per year, or roughly $333 per month, which is baked into the monthly rent alongside mortgage, insurance and a margin.
Is there a state property tax in Texas?
No. Texas has no statewide property tax; every dollar of property tax stays local to fund public schools, county government, city services, roads, hospitals and junior college districts. The Texas Comptroller's office publishes and oversees the appraisal roll but does not set the tax rates — local elected taxing units do.
When are Texas property taxes due?
Tax bills are typically mailed in October, and full payment is due by January 31 of the following year. Most counties offer installment plans for seniors and disabled homeowners, and lenders collect the tax monthly through an escrow account as part of your mortgage payment. Pay late and penalties and interest accrue quickly.
Can I appeal my Texas appraisal?
Yes. You have 30 days from the date on your appraisal notice to file a protest with your county Appraisal Review Board. Homeowners who successfully argue a lower market value often cut their annual tax by hundreds or thousands of dollars, because the tax is a straight percentage of the appraised figure.
Disclaimer
This Texas property tax calculator is provided for informational purposes only and does not constitute tax, legal, or financial advice. Estimates use the simplified formula (appraised value minus homestead exemption, times a single effective rate) and do not model county/city optional exemptions, the 10% school-assessment growth cap, senior or disabled-veteran exemptions, or MUD/EID special-district add-ons. Your actual bill is set by your county appraisal district and the combined tax rates adopted by each local taxing unit. Always confirm your numbers with your county appraisal district and a licensed Texas tax professional before making a financial decision.