Texas (TX) property tax rate: 1.8% | Median home: $335,000 | Median annual tax: $6,030
Texas is the second-largest state with no income tax but high property taxes. The average effective property tax rate in Texas is 1.8%, which is above the national average of 1.1%.
On the median Texas home valued at $335,000, annual property taxes come to approximately $6,030 or $503/month. This is a significant part of your total housing cost and should be factored into any home purchase budget.
Pro tip: Texas homestead exemption removes $40,000 from assessed value plus limits annual increases to 10%.
Texas has no state income tax, which means property taxes are one of the primary revenue sources for local governments. While the property tax rate may seem high, the lack of income tax often makes the overall tax burden competitive.
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Texas has an average effective property tax rate of 1.8%. On the median home value of $335,000, that equals approximately $6,030 per year or $503 per month.
Property taxes in Texas are calculated by multiplying your home assessed value by the local tax rate. The assessed value may differ from market value depending on your county assessment ratio. Exemptions like homestead exemptions can reduce your taxable value.
Texas homestead exemption removes $40,000 from assessed value plus limits annual increases to 10%.
Texas property taxes are above the national average of 1.1%. Budget carefully for this significant expense when buying a home here.
Property tax due dates vary by county in Texas. Most counties offer semi-annual payments. Check with your county tax assessor office for specific due dates. Late payments typically incur penalties of 1-2% per month.