Property taxes are local taxes that provide the largest source of money local governments use to pay for schools, streets, roads, police, fire protection and many other services. Texas law establishes the process followed by local officials in determining the value for property, ensuring that values are equal and uniform, setting tax rates and collecting taxes. Texas has no state property tax. The Legislature has authorized local governments to collect the tax. The state does not set tax rates, collect taxes or settle disputes between you and your local governments.

Who Does What?

What Do They Do?

When Do They Do It?

Where Does the Money Go?

Why Do They Do It?

How Can I Challenge What They Do?

Exemptions reduce the taxable value of your property. This lowers your tax amount. Some of these exemptions are:

• Residence Homestead Exemption – available for all homeowners on their residence as long as they lived there on January 1st of the tax year.
• Disabled Person Exemption – available in addition to the homestead exemption to those who qualify according to specific guidelines.
• Disabled Veteran Exemption – available to the Veteran or their surviving spouse.  This can be taken in addition to the homestead exemption and is set according to a disability rating. This exemption can be taken on any one property in Texas; it is not limited to the homestead property.
• Age 65 or Older Exemption – available to those homeowners age 65 or older.  This can be taken in addition to homestead exemption.
• Homeowners over the age of 65 or who received the disabled person’s exemption may also arrange for a Tax Deferral on their homestead property. You may choose to defer the collection of taxes if you own and occupy your residence and taxes are delinquent; however, a tax lien remains on the property and interest of 5% a year continues to accrue.

The chief appraiser is responsible for administering exemption applications. A property owner or the owner’s authorized agent must file any necessary exemption form before May 1 of the tax year.

Tax statements are mailed each October of the Tax year and are due on receipt. In order to be timely, payment of taxes must be postmarked before the specified date. Taxes are delinquent on February 1 of each year and subject to penalty and interest, and subject to possible lawsuit.

Failure to receive a tax statement does not affect the validity of the tax, penalty, interest, due date, the existence of a tax lien, or any procedure instituted to collect a tax. 

Appraisal Districts appraise the value of your property. Appraisal Review Boards settle disputes between taxpayers and property owners. Local Taxing Units set budgets and property tax rates. County Assessor Collectors collect taxes from property owners and distribute the funds to the local taxing units.

The longer you allow delinquent property taxes to go unpaid, the more expensive it becomes.

As a general rule to qualify for an exemption you must own your home and it must be your principal place of residence. Additional qualifications may apply based on the exemption.

A person may not receive a homestead exemption for more than one residence homestead in the same year. You can receive a homestead exemption only for your main or principal residence.

No, that is not necessarily true. If you are 65 or older your residence homestead qualifies for more exemptions which will result in greater tax savings. The amount of the exemptions that are granted by each taxing unit is subtracted from the market value of your residence and the taxes are calculated on that “lower value”. In addition, when you turn 65, you may receive a tax ceiling for your total school taxes; that is, the school taxes on you residence cannot increase as long as you own and live in that home. The ceiling is set at the amount you pay in the year that you qualify for the aged 65 or older exemption. The school taxes on your home subsequently may fall below the ceiling. If you significantly improve your home (other than ordinary repairs and maintenance), tax ceilings can go up. For example, if you add a room or garage to your home, your tax ceiling can rise. It will also change if you move to a new home.