Texas Property Tax 2026: Rates, Homestead Exemption & Calculator

Texas Property Tax 2026

Texas has no state property tax. As the Texas Comptroller states: "Texas has no state property tax. The Comptroller's office does not collect property tax or set tax rates. That's up to local taxing units." Rates are set by school districts, counties, cities, and special districts — and they vary significantly by location.

What makes Texas notable is the trade-off: no state income tax, but above-average property taxes that fund what would otherwise be state-level spending (particularly schools). The $140,000 homestead exemption significantly reduces the burden on primary residences. This guide covers the verified exemption amounts, the over-65 protections, and how to use our Property Tax Calculator by State for your specific situation.

How Texas Property Tax Works

The Texas Comptroller's office confirms there is no state property tax in Texas. Instead, property taxes are levied by local taxing units — primarily school districts, which account for more than 55% of all property tax revenue in the state. Other taxing units include counties, cities, hospital districts, and special districts (MUDs, water districts, etc.).

Each property is appraised annually by the county appraisal district as of January 1. All local taxing units apply their rate to the same appraised value. The total tax bill is the sum of all applicable local rates applied to the assessed value (after exemptions).

Texas generated $79.4 billion in local property tax revenue in 2022, representing 47% of all state and local tax revenue — one of the highest property-tax-to-revenue ratios in the US. This reflects the structural choice to fund government locally rather than through state income tax.

Source: Texas Comptroller — Property Tax

The $140,000 Homestead Exemption

Tax Code Section 11.13(b) requires all school districts to provide a $140,000 exemption on a residence homestead. This is the most significant property tax relief for Texas homeowners.

How it works: If your home is appraised at $350,000, the school district taxes only $210,000 (after subtracting the $140,000 exemption). At a typical school district rate of 1.0%, that saves $1,400/year compared to paying on full value.

How to claim it: File an application with your county appraisal district. You must own and occupy the property as your primary residence on January 1 of the tax year. The exemption continues until you sell or stop occupying the home as your primary residence.

Local option exemptions (additional): Other taxing units (counties, cities, special districts) may adopt an additional homestead exemption of up to 20% of appraised value, with a minimum of $5,000. Counties with farm-to-market or flood control taxes also provide a $3,000 exemption.

Source: Texas Comptroller — Homestead Exemptions

Over-65 Exemption and School Tax Ceiling

Texas provides significant additional protection for homeowners aged 65 and older:

Additional $60,000 exemption: Tax Code Section 11.13(c) requires school districts to provide an additional $60,000 exemption for homeowners 65 or older. Combined with the general $140,000 exemption, seniors effectively get a $200,000 school district exemption on their residence homestead.

School tax ceiling: Once a homeowner turns 65 and claims the exemption, their school district property tax is frozen at that year's amount. The school district cannot increase the tax on the home as long as the homeowner lives there — even if property values rise or school tax rates increase. This is sometimes called the "senior freeze" for school taxes (distinct from New Jersey's Senior Freeze program).

Disabled persons: Homeowners who qualify as disabled under Social Security may receive the same $60,000 additional exemption and school tax ceiling — even if they are under 65.

Surviving spouses: When a qualifying homeowner dies, the surviving spouse (if at least 55) can continue to receive the school tax ceiling.

Source: Texas Comptroller — Exemptions

100% Disabled Veteran: Total Exemption

Texas provides a complete property tax exemption for veterans with a 100% disability rating from the VA. Under Tax Code Section 11.131, a disabled veteran who has been awarded 100% disability compensation and a rating of 100% disabled (or individual unemployability) is entitled to a total property tax exemption on their residence homestead.

Partial exemptions apply to veterans with lower disability ratings under Tax Code §11.22:

• 10–29% disability: $5,000 exemption
• 30–49% disability: $7,500 exemption
• 50–69% disability: $10,000 exemption
• 70–99% disability: $12,000 exemption

Surviving spouses of veterans who died in service or as a result of a service-connected disability may also qualify for total exemption under §11.133 and §11.134.

Source: Texas Comptroller — Exemptions

Texas vs No-Income-Tax States: The Property Tax Trade-Off

Texas is often cited as a low-tax state because it has no income tax. But property taxes are above the national average and fund what most states handle through income tax — especially public schools.

For a homeowner with a $400,000 home claiming the $140,000 homestead exemption:

• Taxable school district value: $260,000
• At a 1.0% school rate: $2,600/year in school taxes
• Plus county, city, and special district taxes (combined often 0.4–0.8%)
• Total estimated bill: $4,000–$5,600/year depending on location

Compare to New Jersey ($9,898 statewide average) or New Hampshire ($2.05% effective rate) — Texas is mid-range among no-income-tax states. Florida (0.86% effective rate) and Nevada (0.60%) are lower; Wyoming (0.56%) lowest among no-tax states.

Use our Property Tax Calculator by State to compare Texas against any other state at your home value.