Texas Property Tax Rates 2024 | How Your Taxes Are Calculated
How Texas Property Taxes Are Calculated & County Tax Rates
Texas property taxes are among the highest in the U.S., making it essential for homeowners, rental property owners, and investors to understand how tax assessments work and how much they can expect to pay.
Since Texas has no state income tax, local governments rely heavily on property tax revenue to fund schools, emergency services, infrastructure, and other public needs. This guide explains how Texas property taxes are calculated, how county-specific tax rates vary, and how much tax you pay per $100,000 in value.
How Are Texas Property Taxes Calculated?
Texas property taxes are ad valorem taxes, meaning they are based on the assessed market value of the property. Here’s how it works:
1️⃣ Property Appraisal
Each County Appraisal District (CAD) determines a property’s market value annually based on recent sales, property condition, and location.
2️⃣ Assessment Ratio
Texas applies a 100% assessment ratio, meaning the assessed value = market value (before exemptions).
3️⃣ Exemptions Applied
Certain property tax exemptions (e.g., homestead exemption) reduce the taxable value, but rental and second homes typically don’t qualify for these benefits.
4️⃣ Tax Rate Calculation
Multiple local taxing entities (county, city, school district, hospital, etc.) combine their rates to create the total property tax rate, which is expressed as a percentage per $100 of assessed value.
📌 Formula to Calculate Your Property Taxes:
Property Tax=(Assessed Value−Exemptions)×Total Tax Rate
Texas Property Tax Rates by County (2024 Estimates)
Property tax rates vary widely across Texas, depending on local budgets and property values. Below is an estimated breakdown of major Texas counties, including big cities, beach areas, and the Hill Country:
📌 Note: Tax rates vary each year based on county budgets and policies. Always check with your County Appraisal District (CAD) for the most accurate rates.
| County | Major City | Total Tax Rate (%) | Tax per $100K ($) |
|---|---|---|---|
| Harris | Houston | 2.31% | $2,310 |
| Dallas | Dallas | 2.16% | $2,160 |
| Bexar | San Antonio | 2.10% | $2,100 |
| Travis | Austin | 2.22% | $2,220 |
| Tarrant | Fort Worth | 2.10% | $2,100 |
| El Paso | El Paso | 2.24% | $2,240 |
| Collin | Plano | 2.09% | $2,090 |
| Denton | Denton | 2.14% | $2,140 |
| Williamson | Round Rock | 2.12% | $2,120 |
| Galveston | Galveston | 2.01% | $2,010 |
Factors That Affect Property Tax Rates in Texas
✔ Local Government Budgets: Higher tax rates fund schools, roads, emergency services, etc.
✔ Property Value Trends: Rising property values increase tax assessments, even if tax rates remain the same.
✔ Economic Growth & Development: Rapidly growing counties often raise rates to support infrastructure.
✔ Homestead & Exemptions: Primary residences receive tax benefits, but rental and second homes do not—leading to higher tax bills.
How to Lower Your Property Taxes in Texas
✔ Check Your Assessed Value: If your property is overvalued, file a property tax protest.
✔ File a Protest Before the Deadline: The 2024 protest deadline is May 15.
✔ Hire a Property Tax Consultant: Experts build strong appeal cases and negotiate lower valuations.
📅 The deadline to protest your Texas property taxes is May 15. Start your appeal today to avoid overpaying!
📞 Need help preparing for your hearing? Contact Texas Tax Appeal today!