Texas Property Tax Guide For New Homeowners
There’s a particular kind of “Texas math” you learn fast after you get the keys: the number you pay for the house is only half the story, and the other half lives in your county’s appraisal roll, your ISD line item, and whatever special districts sit on top of your subdivision. From the cedar-heavy Hill Country lots near a creek bend to brand-new rooftops popping up along Farm-to-Market roads, the rules are statewide—yet the real-world bill is always local.
Table Of Contents
- How Texas Property Tax Works
- Who Does What (CAD vs Tax Office vs Taxing Units)
- The Tax-Year Calendar You Can Actually Plan Around
- Reading Your Tax Bill Line-By-Line
- Homestead Exemption And The 10% Cap (What New Owners Miss)
- Special Districts: MUDs, PIDs, And Other “Hidden” Lines
- Protests And Appeals: Deadlines And Process
- Escrow And Mortgage Servicers: Staying In Control
- Payment And Delinquency Details That Matter
- Tools And Official Portals Texans Use
- Sources
How Texas Property Tax Works
Texas property tax is ad valorem—a value-based tax set and collected locally. The state does not levy a statewide property tax, and the Texas Comptroller doesn’t collect your bill or set your rate; the day-to-day system is run by local taxing units (like counties, cities, school districts, and special districts). That local structure is the reason two homes with the same price tag can land in two totally different annual tax pictures just a few exits apart.
At the most practical level, your annual tax is built from two ingredients:
Taxable Value (your home’s appraised value after exemptions and any applicable limits) × Total Tax Rate (the combined rate of each taxing unit shown on your bill, typically expressed “per $100 of value”).
Local shorthand you’ll hear: people say “my rate is 2-point-something” or “$X per $100,” but the only number that truly counts is the combined total on your bill—because it’s the stack of units (ISD + county + city + special districts) that makes the final.
Who Does What (CAD vs Tax Office vs Taxing Units)
New homeowners often lose time because they call the wrong office. In Texas, three different players touch your property tax life—each with a clean lane.
County Appraisal District (CAD)
This is the valuation and exemptions office. It sets your property’s market value as of January 1 (with limited exceptions) and handles exemption applications. Texas law generally requires appraisal at market value as of Jan. 1, using accepted appraisal methods.
- Handles: market/appraised value, exemptions, value notices, protests scheduling
- Local jargon: “CAD account,” “NOAV” (Notice Of Appraised Value), “ARB” (Appraisal Review Board)
Tax Office / Tax Assessor-Collector (Or A Contracted Collector)
This is the billing and collections office. Tax bills typically start mailing in October, and payment is due upon receipt. If you haven’t received a bill by mid-January, the Comptroller advises contacting your local tax office. Also—this trips up plenty of folks—the failure to receive a bill doesn’t cancel the tax or stop penalties from applying.
- Handles: bills, receipts, payment plans, delinquency tracking
- Local jargon: “tax statement,” “combined collections,” “receipt for escrow”
A small-but-important Texas detail: the Comptroller notes that each person who owns taxable property on January 1 is liable for that year’s taxes, even if the property is sold later in the year. That’s why closing prorations exist—your settlement paperwork usually accounts for who “covers” which portion of the year in practice.
The Tax-Year Calendar You Can Actually Plan Around
Texas runs on a predictable rhythm: value first, then rate adoption, then bills, then collection. The fine print matters, especially the “mailing date” language that shows up in protest and delinquency rules.
| Season | What Happens | Why New Homeowners Should Care |
|---|---|---|
| January 1 | Market value is generally appraised as of Jan. 1. | If you’re in a newly completed home by Jan. 1, that can influence how much “improvement value” appears on the roll for the year. |
| Spring | Notices and protest windows kick in. In most cases, the protest deadline is May 15 or 30 days from the appraisal district notice date (whichever is later), and the “30 days” is counted from the date the notice is mailed, not when it lands in your mailbox. | If you travel or your mail is spotty, set up online account access with your CAD so you’re not relying on paper timing. |
| Late Summer / Fall | Taxing units adopt tax rates under truth-in-taxation rules and publish required notices. | This is when your combined rate is finalized—especially relevant if your area has multiple overlapping districts. |
| October–January | Tax bills begin mailing in October; most bills are due by January 31. If unpaid, taxes are generally delinquent on February 1, but the delinquency date can be postponed if the bill is mailed late (your bill prints the delinquency date). | Mailing timing can shift delinquency. Don’t assume Feb. 1 is your exact date—verify what’s printed on your statement. |
Reading Your Tax Bill Line-By-Line
A Texas tax bill is usually a multi-unit stack. The Comptroller notes your bill may include taxes for more than one taxing unit if collections are combined. When you see multiple lines, it’s not “extra”—it’s simply the system showing its layers.
The Numbers That Actually Drive The Total
- Market/Appraised Value: the CAD’s value baseline (generally as of Jan. 1).
- Exemptions: deductions applied to value for specific taxing units.
- Taxable Value: value after exemptions and applicable limitations.
- Rate Per $100: the unit’s rate applied to taxable value.
- Total Due: the combined sum of each unit’s levy.
Local “Tell-Me-Where-You-Live” Clues
- ISD Line: your Independent School District levy (often the largest single slice).
- City Line: only if you’re inside city limits—homes just outside an ETJ boundary can look very different.
- MUD / WCID / LID / Management District: signals infrastructure or service districts—common in newer master-planned areas.
- County: county services and infrastructure.
One underrated habit: request (and save) your tax receipt. The Comptroller points out receipts are useful for records and as evidence of payment, including when your mortgage company pays from escrow.
Homestead Exemption And The 10% Cap (What New Owners Miss)
Texas has two homeowner-friendly ideas that often get blended together in casual conversation: the Residence Homestead Exemption and the 10% limitation on annual increases in a homestead’s appraised value. They’re related, but they aren’t the same tool—and the “new homeowner” timing is where the surprises hide.
School-District Homestead Exemption: Texas law requires school districts to provide a $140,000 residence homestead exemption. That means school taxes are calculated as if your home were worth $140,000 less for school-tax purposes (with local options possibly adding more). Applications are filed with your county appraisal district, and the Comptroller notes the general deadline is before May 1.
The new-owner nuance: the Texas Comptroller explains that if you acquire the property after January 1, you may receive the general residence homestead exemption for the applicable portion of the year immediately on qualification if the previous owner did not receive the same exemption for that tax year. That’s not a headline most guides lead with, but it can matter in real transactions—especially with inherited properties, rentals converting to owner-occupied, or ownership changes inside a family.
The 10% limitation: Texas Tax Code Section 23.23 limits the annual increase in a residence homestead’s appraised value to a formula that generally includes “prior year + 10% + new improvements,” and the Comptroller summarizes this limit directly in its valuation guidance. The practical takeaway is simple: the cap slows the climb after you qualify, but it doesn’t freeze market value—and it doesn’t prevent a reset when ownership changes.
Special Districts: MUDs, PIDs, And Other “Hidden” Lines
If you’ve bought in a newer subdivision—especially in fast-growth corridors where the nearest landmark is an FM road and a brand-new H-E-B—special districts are worth understanding early. These lines aren’t “fees” tacked on later; they’re real taxing units that can appear right alongside your county and ISD on the same statement.
Municipal Utility Districts (MUDs)
MUDs are special-purpose districts often tied to water, wastewater, drainage, and infrastructure for developing areas. The Texas Commission on Environmental Quality (TCEQ) maintains guidance and provides a map viewer to check for existing districts.
Public Improvement Districts (PIDs) And Management Districts
PIDs and management districts can fund neighborhood-level improvements and services. A very Texas-specific detail: the Texas A&M Real Estate Research Center notes that PID notices have filing and closing-recording requirements tied to seller and buyer documentation, which is why title paperwork sometimes calls them out even when listings gloss over them.
How To Spot Special Districts Before They Surprise You
- Start with your CAD record: most appraisal district sites list taxing units attached to the account (ISD, city, county, plus any special districts).
- Cross-check with the Comptroller’s database: the Texas Comptroller hosts the Special Purpose District Public Information Database (SPDPID), which contains reported financial and tax information for special purpose districts.
- If “MUD” is on the radar: use the TCEQ MUD resources and map viewer to confirm the district’s existence and footprint.
Protests And Appeals: Deadlines And Process
Texas gives homeowners a formal way to challenge value and certain appraisal district determinations, but the system is deadline-driven. The Texas Comptroller states that, in most cases, you have until May 15 or 30 days from the appraisal district notice date (whichever is later), and it emphasizes a detail people overlook: the “30 days” is counted from the date the notice is mailed, not from delivery to your home.
A protest doesn’t need to be a novel. The Comptroller notes that a notice of protest is sufficient if it identifies the property and owner and indicates dissatisfaction in writing. After filing, most counties offer an informal review phase and, if needed, an Appraisal Review Board (ARB) hearing.
Quiet rule change that affects your mailbox: Texas Tax Code Section 25.19 allows a chief appraiser (with board approval) to dispense with certain mailed value notices when the increase is $1,000 or less. Not receiving a notice doesn’t necessarily mean “nothing changed”; it can also mean “nothing changed enough to require a mailed notice.”
Escrow And Mortgage Servicers: Staying In Control
If you have a mortgage escrow account, your monthly payment often includes an estimated property tax portion, and the servicer pays when the bill posts. The Comptroller notes that if your mortgage company pays your property taxes, the mortgage company will receive the tax bill. That arrangement is convenient, but it doesn’t replace your need to understand the numbers—because escrow estimates can change after the CAD certifies values and taxing units adopt rates.
Two homeowner habits that help keep things calm:
- Compare your escrow estimate to the actual tax statement once bills are mailed (typically starting in October).
- Keep your mailing address current with the appraisal district; the Comptroller notes that failure to receive a bill doesn’t stop the tax from being valid or stop penalties from applying.
Payment And Delinquency Details That Matter
The “headline” deadline most Texans remember is January 31—but the real system has a couple of built-in timing safeguards that show up right on your bill.
- Most bills: pay by January 31; unpaid taxes are generally delinquent on February 1.
- The “21-day” rule: the Comptroller notes taxing units must give at least 21 days after mailing to pay; if a bill is mailed after January 10, the delinquency date is postponed, and the postponed date prints on the bill.
- Penalty and interest (high level): the Comptroller explains that on February 1 a 6% penalty and 1% interest are added, with additional accrual rules over the following months.
- Installment plans (when available): some collectors allow installment payment of delinquent taxes for up to 36 months, and the Comptroller notes they’re not required to offer this option except on a residence homestead.
Another detail worth knowing as a homeowner (especially if you ever refinance or change servicers): the Comptroller notes that a tax lien attaches to property on January 1 each year to secure payment of taxes, which is one reason title companies and lenders stay laser-focused on “paid tax” status during transactions.
Tools And Official Portals Texans Use
If you want to keep everything grounded in official data (instead of guesswork), these are the portals that consistently save time—whether you’re in Harris County, Travis County, Bexar County, or a smaller county where the courthouse square is still the center of gravity.
Sources
- Texas Comptroller – Property Tax Exemptions — Explains residence homestead rules (including the $140,000 school-district exemption) and filing basics.
- Texas Comptroller – Paying Your Taxes — Covers billing timelines, January 31/February 1 rules, the 21-day mailing requirement, and penalty/interest basics.
- Texas Comptroller – Valuing Property — Details market value as of January 1 and summarizes appraisal limitations like the residence homestead 10% cap.
- Texas Comptroller – Appraisal Protests And Appeals — Official deadlines (May 15 or 30 days) and what counts as a valid protest notice.
- Texas Comptroller – Truth-In-Taxation: Tax Rate Adoption — Explains how local taxing units adopt rates and what taxpayers are entitled to see.
- Texas Comptroller – Special Purpose District Public Information Database (SPDPID) — Search tool for reported tax and financial information from special purpose districts.
- Texas Commission On Environmental Quality – Municipal Utility Districts — Provides guidance and mapping resources for identifying MUDs.
- Texas A&M Real Estate Research Center – Homestead Advantage — University guidance on homestead exemption concepts and homeowner implications.
- Texas A&M Real Estate Research Center – PID Notice Requirements — University explanation of PID notice filing and closing documentation practices.
Important Note
This page is for general information only and isn’t legal or tax advice. Property tax rules, exemption amounts, local rates, and deadlines can change, and the details can vary by county and taxing unit. Always verify your current account status, notices, and due dates with your county appraisal district, local tax office, and official Texas Comptroller resources.