Texas Property Tax
Texas Property Taxes are levied by counties, cities, school districts, and other special types of taxing authorities. If you are a homeowner in Texas, understanding how property taxes work is essential for managing your budget and planning for the future.
Despite Texas’ reputation as a low-tax state, its property taxes are among the highest in the nation. According to the conservative Tax Foundation, Texas property taxes rank sixth in the country as a household income percentage. The tax burden has grown faster than personal income or sales taxes, which is a major reason why so many Texans cannot afford a home.
But 2024 could be the year homeowners finally start to see property tax relief. A package of changes passed by the Texas Legislature this year will save homesteaders—those who live in a primary residence they own—an average of $1,300 per year. The package also includes school tax cuts and a 20 percent cap on appraisal increases for landlords who own investment or rental properties.
How Does Texas Property Taxes Work?
The Texas property tax system is complicated, and homeowners must understand how their property taxes are calculated before paying them. These taxes are based on several factors, including the taxable value of your home, the tax rate for your location, and any discounts or exemptions you may qualify for. Understanding these factors can help you save money on your property taxes.
Property taxes in Texas are some of the highest in the nation, and they are due on January 31st (or the second business day in February, if that date falls on a weekend). If you fail to pay your property tax by this date, you will face penalties.
The property tax system is a complex and confusing process. Still, there are steps you can take to reduce your Texas property taxes. For example, by appealing your property’s appraised value and taking advantage of available tax exemptions, you can lower your tax bill and save money.
How to Pay Texas Property Taxes?
There isn’t a centralized system for online property tax payments in Texas. Instead, each county or tax authority has its own process. Here’s how to find the online payment option for your specific location:
Search your county’s tax office website: Most counties will have a dedicated section for property taxes on their website. Look for keywords like “property tax,” “tax payment,” or “ePay.”
Look for logos: Many counties utilize a third-party processor for online payments, such as GDS TexasPayments (https://texaspayments.com/). You might see a logo for this company or a similar provider on the tax office website.
