Property taxes in Texas are locally administered and are the primary source of funding for local governments. Revenue supports public schools, counties, cities, hospital districts, and special purpose districts. Texas does not have a state property tax, but the state sets appraisal standards and oversees the system.
How Property Taxes Are Administered
- County appraisal districts determine property values
- Appraisal review boards hear valuation disputes
- County tax assessor collectors issue bills and collect taxes
- School districts, counties, cities, and special districts set tax rates
- The Texas Comptroller of Public Accounts provides oversight and guidance
Valuation Method Used
Texas uses market value as the basis for property taxation.
- Market value reflects the price a property would likely sell for
- Appraisal districts analyze recent sales, cost data, and income potential
- Properties are generally appraised annually
- Certain land types may qualify for special use based valuation
Assessed value is the taxable value after exemptions and limitations are applied.
Assessment Ratios
Texas does not use fixed assessment ratios by property type.
- Most taxable property is assessed at full market value
- Agricultural and open space land may qualify for productivity valuation
- Certain residential properties may have value limitations applied
The taxable value may differ from market value due to exemptions or caps.
Calculation Process
Property tax bills are calculated using the following approach:
- Market value is determined by the appraisal district
- Exemptions and limitations reduce the taxable value
- Each taxing unit applies its adopted tax rate
- The combined total from all taxing units equals the tax bill
Rates vary depending on the location of the property.
Notices and Appeals
Property owners receive an annual notice of appraised value.
Appeals may be filed with the appraisal review board. Property owners can present evidence such as comparable sales. Further appeals may be available through arbitration or the court system.
Payment Schedule
Property tax bills in Texas are issued annually.
- Bills are typically mailed in the fall
- Taxes are generally due by early the following year
- Partial payments may be allowed by some taxing units
- Penalties and interest apply to late payments
Exemptions and Relief Programs
Texas offers a variety of exemptions and tax limitations, including:
- Homestead exemptions for primary residences
- Additional homestead exemptions for seniors and disabled homeowners
- Disabled veteran exemptions
- Surviving spouse exemptions in qualifying situations
- Agricultural and open space land valuation programs
Most exemptions require application with the county appraisal district.
Reasons Taxes May Change
- Annual changes in market value
- Voter approved changes in local tax rates
- New construction or property improvements
- Changes in exemption status
- Adjustments to special district boundaries
Practical Tips for Owners
- File homestead exemptions as soon as eligible
- Review appraisal notices each year for accuracy
- Keep records of comparable sales and property condition
- Monitor local tax rate proposals and elections
- Appeal valuations when market value appears overstated
Final Thoughts
Delaware’s property tax system, while structured differently, also relies on local governments to assess and collect taxes that fund essential public services. Both Texas and Delaware emphasize local control, valuation oversight, and exemption programs to balance revenue needs with taxpayer protections.