Texas Property Tax Rates by City: Where Does Your Area Rank?

Key Takeaways: 

• Rate Ranges by City: Texas cities vary widely in their property tax rates, with some exceeding 2.5% and others dipping below 1.2%, depending on location, services, and development needs.
• How Your Taxes Are Used: Local governments fund essential services through property taxes, and how your city allocates those funds directly affects your rate and potential savings.
• Tax-Saving Strategies: Understanding exemptions, assessment methods, and protest procedures can give homeowners a strategic edge in lowering their annual tax liability.

Where Your Texas Property Taxes Actually Go

Property taxes in Texas are a major financial responsibility for homeowners, but they’re also essential to the everyday functioning of local communities. Understanding where your property tax dollars are allocated can help you see the bigger picture — and make smarter decisions when evaluating your annual tax bill.

Public Schools Receive the Largest Share

Roughly 60% of your property tax payments are directed toward funding public schools. These funds support teacher salaries, facility maintenance, learning materials, and programs that shape the future of Texas communities.

Local Governments and Community Services Use the Remainder

The other 40% is divided among essential services like law enforcement, emergency response, road maintenance, and public libraries. These services rely on consistent funding to function effectively and meet the needs of growing populations.

How Funds Are Allocated Varies by Location

Each city or county determines how to allocate funds based on its unique priorities. Factors like population growth, infrastructure demands, and local legislation influence where and how your tax dollars are spent.

Some Of The Top Texas Cities With The Highest Property Tax Rates

While Texas doesn’t have a state income tax, it does rely heavily on property taxes to fund local services — and the rates can be steep, especially in certain cities. Some locations consistently appear at the top of the list due to factors like growing infrastructure demands, school district funding needs, and comparatively lower property values.

El Paso

El Paso has one of the highest property tax rates in the state, hovering around 2.6%. The city’s location along the U.S.–Mexico border, combined with the need to fund critical municipal services, drives this elevated rate.

McAllen

Property tax rates in McAllen often exceed 2.3%, making it another high-ranking city in terms of tax burden. The combination of local government funding requirements and relatively low property values contributes to the high rate.

Pearland

Pearland’s property tax rate is approximately 2.2%, influenced by the city’s rapid growth and investment in community development. Infrastructure expansion and improvements to quality of life have played a role in maintaining this elevated rate.

Beaumont

With a property tax rate around 2.1%, Beaumont reflects the costs associated with supporting a strong industrial base. The city balances economic development with the need for robust public services, which contributes to higher taxation.

San Antonio

San Antonio’s rate is close to 2.03%, driven by a combination of urban growth and large-scale public infrastructure needs. Its size and popularity as a major metro area require ongoing investment in roads, schools, and safety services.

Some Of The Texas Cities With The Lowest Property Tax Rates

Not every Texas city carries a heavy property tax burden. In fact, some communities offer notably lower rates, providing homeowners with more manageable annual tax bills — an especially appealing factor for buyers seeking long-term affordability.

Celina

Celina features a property tax rate of roughly 1.7%, offering residents a cost-effective environment with proximity to the Dallas-Fort Worth metroplex. The city’s small-town appeal and steady development help maintain this moderate rate.

Anna

Anna, located just north of Dallas, holds a property tax rate near 1.6%. As a growing suburb, it blends new residential growth with a relatively light tax load, attracting families and first-time buyers alike.

Aubrey

With a combined property tax rate close to 1.4%, Aubrey stands out as one of the more affordable cities in the region. Its rural charm, paired with accessible amenities, makes it an attractive option for those looking to lower housing-related costs.

Cedar Hill

Cedar Hill offers a tax rate of approximately 1.2%, making it ideal for homeowners who want to stay near the Dallas-Fort Worth area without paying metro-level taxes. Its balance of urban convenience and lower rates appeals to budget-conscious buyers.

Fairfield

Fairfield ranks among the lowest with a property tax rate around 1.1%. Nestled between Dallas and Houston, the city provides a peaceful lifestyle with some of the most wallet-friendly rates in the state.

Tips For Managing High Property Tax Rates

If you live in a city with high property tax rates, you’re not powerless. There are several strategies you can use to reduce your tax burden or at least ensure your property is being fairly assessed. A proactive approach can make a noticeable difference in what you owe each year.

Review How Your Property Was Assessed

Property tax assessments are based on recent sales of comparable homes in your area. If your valuation seems inflated, take a close look at the comps and note any differences in square footage, upgrades, or lot features that could impact value.

Apply For Available Exemptions

Texas offers several property tax exemptions that can reduce your taxable value. These include homestead, over-65, veteran, and disability exemptions — each designed to ease the tax burden for qualifying homeowners.

Keep Up With Local Rate Changes And Policies

Tax rates may change annually based on city budgets or legislative updates. Staying informed about these shifts can help you prepare for increases and act quickly if your new assessment doesn’t reflect your property’s true value.

Exemptions That Can Lower Your Property Taxes

Texas provides a variety of exemptions that can significantly reduce the taxable value of your property. These exemptions are designed to support certain groups of homeowners and landowners, helping them save on their annual property tax bills when eligible.

Homestead Exemption

If you occupy your property as your primary residence, you may qualify for the homestead exemption. This reduces the taxable value of your home for school taxes by up to $100,000 or 20%, depending on your local tax authorities.

Over-65 Exemption

Homeowners aged 65 or older can apply for this exemption to lower their taxable value and freeze school district taxes at the current level. It provides consistent tax relief for seniors and helps protect against future increases.

Disability Exemption

Individuals with qualifying disabilities may be eligible for an exemption that reduces their property’s taxable value. In some cases, based on severity, this may result in a 100% exemption from property taxes.

Veteran’s Exemption

Disabled veterans and certain surviving spouses may qualify for partial or full exemptions based on service-connected disability ratings. The greater the disability rating, the more significant the exemption benefit.

Agricultural and Wildlife Management Exemptions

Land used for qualifying agricultural purposes or wildlife conservation may be assessed based on its productive use instead of market value. To maintain eligibility, landowners must meet specific usage criteria and demonstrate consistent use over time.

How To Protest Your Property Taxes

Challenging your property tax assessment may feel overwhelming, but understanding the process can empower you to take control. A well-prepared protest can lead to a significant reduction in your annual tax bill — especially if your property has been overvalued.

Start by Reviewing Your Assessment

Begin by examining your property’s current assessed value and compare it to similar homes in your area. If your home appears to be valued significantly higher than comparable properties, that discrepancy can form the foundation of your protest.

Research Comparable Properties and Make Adjustments

Effective protests rely on “comps” — homes with similar features like size, location, age, and condition. While no two properties are exactly the same, adjustments for differences such as renovations or lot size can help build a stronger case.

File Your Protest by the Deadline

In Texas, the protest deadline typically falls on May 15. You can file online, by mail, or in person with your local appraisal district, including documentation that supports your claim and a clear explanation of why your valuation is inaccurate.

Prepare for the Appraisal Review Board (ARB) Hearing

If your initial protest doesn’t lead to a reduction, you may need to present your case at a formal ARB hearing. Having organized documentation and a clear narrative will help you advocate for a fairer valuation.

Understand What Happens After the Decision

Once the ARB makes a decision, you’ll receive a notice with the outcome. If the results aren’t favorable, you still have options — such as appealing through the State Office of Administrative Hearings or filing a case in district court.

Final Thoughts

Property tax rates in Texas can vary widely from one city to the next, and that variation can have a significant impact on your financial outlook as a homeowner or investor. Whether you live in a high-rate city like El Paso or a more tax-friendly area like Fairfield, understanding how rates are set — and what you can do about them — is key to staying ahead.

Managing your property tax bill starts with knowledge: where your money goes, how your valuation was determined, and what exemptions or protests you may qualify for. With the right approach and a proactive mindset, it’s possible to reduce your annual burden and make more informed decisions about where and how you own property in Texas.

Frequently Asked Questions About Texas Property Tax Rates by City

How do Texas property tax rates compare to other states without a state income tax?

Texas generally ranks among the states with the highest property tax rates, particularly because it does not collect income tax. This system places a heavier reliance on property taxes to fund local governments, unlike some other income-tax-free states that lean more heavily on sales or tourism-based taxes.

Are newly developed neighborhoods in Texas more likely to have higher property tax rates?

Yes, newly developed neighborhoods often have higher effective tax rates due to the need to build infrastructure, schools, and amenities from scratch. In some cases, special taxing districts like MUDs (Municipal Utility Districts) or PIDs (Public Improvement Districts) are also added on top of standard property taxes.

Can I estimate my future property taxes when buying a home in Texas?

You can get a ballpark figure by applying the city’s average tax rate to the estimated assessed value, but rates and valuations can shift annually. It’s also important to research local tax districts and exemptions that may affect your total bill.

Do commercial properties in Texas follow the same property tax rules as residential homes?

Commercial properties are subject to the same general assessment and taxation principles but often undergo more aggressive valuation reviews. Their higher assessed values and lack of exemptions typically result in a larger tax burden compared to residential properties.

Is it common for property tax rates to change after a municipal election?

Yes, city council or school board decisions made after elections often lead to tax rate adjustments. Budget reallocation, bond approvals, or shifts in public service priorities can all cause changes in the tax rate for the following fiscal year.

How does population growth in a city affect its property tax rates?

Rapid population growth can create additional financial strain on city services, which may lead to increased tax rates. However, a growing tax base may also spread the burden more evenly, helping to stabilize rates over time.

Can property tax rates be different for adjacent neighborhoods within the same city?

Yes, due to overlapping tax jurisdictions such as special districts or school zones, it’s common for nearby neighborhoods to have different effective property tax rates even if they fall within the same city limits.

Are rental property owners affected differently by property taxes in Texas?

Rental property owners pay the same property tax rates but may face different financial implications since they don’t qualify for homestead exemptions. These costs are often passed along to tenants through higher rents.

What is the difference between a property tax rate and a tax levy?

The property tax rate is the percentage used to calculate your bill, while the tax levy is the total amount a taxing authority needs to collect. A city can lower the rate but still increase the levy if property values rise significantly.

Are there incentives for developers or investors that impact property tax rates in Texas cities?

Yes, some cities offer incentives like abatements or reduced tax rates to attract development or revitalization in certain areas. These programs can lower the property tax burden temporarily for qualified developers or commercial investors.