How are Property Taxes Calculated in Texas?

Government agencies play a major role in determining the property taxes Texans owe every year. As the population in Texas is growing, the demand for housing booms, and the property values, in turn, increase the property taxes Texans pay every year.

Determining how much the Texas property owners owe is quite a complicated process and it also involves multiple government entities, cities, counties, and school districts.

Instead of state property tax, each Texas county has its own appraisal district. Your county’s appraisal district is run by a board of directors. However, Texas law does play a role in dictating your tax rates. Property values are required to be equal and uniform. Local officials have to follow a set process for establishing property values, setting tax rates and collecting taxes.

However, the final tax owed is determined by the appraised value which is set by the local appraisal district. The legislators then spend the next several months discussing how to keep the property taxes from going up so fast.

The process that determines your Texas property tax rate

After your Central Appraisal District determines the value of the property, you are able to decide if you agree with the property tax value set or not.

If you agree with the set property value, the next steps are:

• The exemptions are deducted
• The tax rate is set
• The tax bill is sent to you
• You pay the bill

If you disagree with the property value your CAD sets, the next step is to file a property tax protest. From there, the appraisal review board reviews your protest. If you agree with their updated decision:

• The exemptions are deducted
• The tax rate is set
• The tax bill is sent to you
• You pay the bill

If the appraisal review board’s decision still seems unfair, you can choose to disagree and appeal through the court. Once you’ve appealed through the court, the same steps are followed with your exemptions being deducted and your tax bill ultimately being your responsibility to pay.

Calculate Your Texas Property Tax

Now that you know how the Texas government calculates property taxes, use our property tax calculator to estimate your potential savings.

Make sure you do not pay more than your fair share of property taxes.