Does Ohio Have Property Taxes? (2026 Tax Guide)
Does Texas Have Property Taxes?
Yes, Texas does have property taxes. In fact, property taxes are the primary way local governments fund public schools, infrastructure, emergency services, and community resources across the state. Because Texas does not collect a state income tax, local property taxes play a larger role in funding day to day services than they do in many other parts of the country.
Texas continues to attract relocation buyers with its strong job market, business friendly environment, and overall cost of living advantages. However, understanding how property taxes work is an important part of planning a home purchase. As we move through 2026, recent legislation and expanded exemptions have reshaped what many homeowners actually pay. This creates a more balanced picture than tax rankings alone might suggest.
To better understand what buyers should know today, here are four key factors shaping Texas property taxes in 2026.
1. Expanded Homestead Exemptions Reduce Taxable Value
One of the most significant recent updates affecting homeowners is the increase to the mandatory school district homestead exemption. Approved by voters in late 2025, the exemption rose from $100,000 to $140,000. For homeowners who occupy their property as a primary residence, this means the first $140,000 of a home’s value is excluded from school district taxation.
For example, a home valued at $400,000 would only be taxed on $260,000 for school tax purposes. According to the Texas State Senate, this change, combined with ongoing tax rate reduction measures, represents one of the largest property tax relief efforts enacted in the history of the state.
2. Property Tax Rates Vary Widely by Location
When buyers ask, "Does Texas have high property taxes?" the most accurate answer is that rates vary significantly depending on where you live. Property taxes are set locally rather than at the state level. This means combined rates differ by county, city, school district, and special taxing authorities.
In fast growing metropolitan counties such as Harris, Tarrant, and Collin, total effective rates often fall between 2.1% and 2.5%. In more rural areas, rates may drop below 1.0%. Data from Home Tax Solutions shows that higher growth regions typically require greater tax revenue to support expanding infrastructure, schools, and public services. For homebuyers, this makes local research an essential part of estimating monthly housing costs.
3. Appraisal Caps Help Stabilize Long-Term Costs
Texas law includes several protections designed to prevent sudden spikes in property tax bills for homeowners. One of the most important is the homestead appraisal cap. This limits annual increases in a primary residence’s taxable value to 10%, even if market values rise faster.
Recent legislative discussions have focused on improving long term predictability through additional reforms. These include proposals to further limit annual increases and require stronger voter approval thresholds for local tax rate hikes. Updates tracked by the Texas Comptroller reflect an ongoing effort to balance local funding needs with homeowner affordability.
4. Additional Exemptions Can Significantly Lower Tax Burden
Beyond the standard homestead exemption, Texas offers several programs that can substantially reduce property tax obligations for qualifying homeowners. Residents aged 65 or older benefit from expanded exemptions. They may also qualify for a school tax freeze that locks in their tax amount moving forward. Disabled veterans may also qualify for partial or full exemptions depending on disability ratings.
Homebuyers often further manage costs by reviewing appraisal values annually and filing protests when appropriate. In today’s market, some buyers also negotiate seller concessions or incentives that help offset initial escrow and tax expenses during the first year of ownership.
Is Texas a High Property Tax State for Homebuyers?
Texas frequently ranks among states with higher effective property tax rates when viewed in isolation. However, those rankings do not always reflect the full financial picture. The absence of a state income tax, combined with expanded exemptions and appraisal protections, means many homeowners experience a more balanced overall tax structure than headline statistics suggest.
For buyers evaluating a move, the key takeaway is that property taxes in Texas are highly localized and increasingly shaped by homeowner protections introduced in recent years. Understanding how exemptions apply and how rates vary by community can make a meaningful difference when planning a home purchase.
For those considering a move to Texas, taking time to evaluate local tax rates alongside home prices, employment access, and neighborhood growth can help create a clearer picture of long term affordability and homeownership costs.
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