What You Need to Know About Property Tax in Texas
This article was updated April 24, 2024.
Property tax in Texas is the single largest source of revenue that local governments use to pay for schools, police, public health care, and many other vital services. Texas property tax is collected and used locally, not at the state level.
The valuation and assessment of property tax must be equal and uniform. Current market value information is used to properly assess property and each property has a single appraised value on an annual basis. No single taxpayer should pay more than their fair share.
How Do Property Taxes Work in Texas?
With no state property tax in Texas, local governments instead set tax rates and collect property taxes to provide local services. Property valuation is done by local county appraisal districts and property taxes are assessed at the local taxing jurisdiction level—county and city school districts, junior college districts, hospital districts, and other special taxing units.
Local appraisal districts are the political subdivision that handles all valuations for each county. An appraisal district has the same boundary as the county it serves, and there’s one in each county in the state. However, an appraisal district is governed by its own board of directors and management and isn’t part of the county or local government.
Is Real Estate Tax the Same as Property Tax?
Not entirely. Texas property tax refers to assessing both real property—meaning land, buildings or structures, land improvements, and growing improvements like vines or orchards—and business personal property, like tangible assets and business-owned inventory used to produce income.