Texas property tax payment deadline looms
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If you own a home in Texas, that fun time of year is here — your property taxes are due Friday.
Why it matters: Texas doesn't levy a state income tax, but it does have some of the highest property taxes in the country.
- Local governments collect property taxes to fund public services such as schools, road upkeep and public safety.
The big picture: Median property taxes in Texas rose 26% between 2019 and 2023, even as the state and local governments took steps to reduce the impact.
- In November 2023, Texas voters approved a historic property tax cut using money from the state surplus.
The intrigue: The national average effective property tax rate is 0.9%. In Texas, the rate is 1.63%, per SmartAsset.
Between the lines: Property taxes also affect renters because the cost is factored into the rent.
- When property taxes increase, rents typically increase.
Zoom in: Dallas County's tax rate is 21.55 cents per $100 valuation. For the 2025 fiscal year, Dallas County expects to collect around $836 million from property taxes. That's around 66% of the county's budget.
- Collin County's 2024 tax rate was 14.9 cents per $100 valuation.
- Cities, schools and other taxing entities set their own rates.
How it works: Appraisal districts determine property values, giving owners the opportunity to protest the assessed values. Homeowners can lower their taxes if they qualify for exemptions.
- Many counties hand off tax collection duties to a tax assessor-collector. The total bill can include taxes for counties, cities, school districts, hospitals, junior colleges and water districts.
Fun fact: Texas has almost 4,800 local taxing units.
What we're watching: The Texas Legislature is back in session and has the power to pass laws to help homeowners. A budget proposal filed last week for the 2026-27 biennium includes another $32.2 billion toward property tax relief.