Blog · Buyer Guide
Texas Property Taxes, Explained for New Buyers
No state income tax — but how do appraisal districts, exemptions and protests work?
By the Saigal Realty team · · 2 min read
Who sets the tax
Your bill is the sum of several local taxing units — typically the county, the city, the school district and sometimes special districts such as a community college, hospital district or MUD (municipal utility district). Each sets its own rate every year, and the school district is usually the largest share.
Who sets the value
Each county has an appraisal district — for example the Collin Central Appraisal District, Denton Central Appraisal District, Dallas Central Appraisal District and Tarrant Appraisal District. They estimate your home's market value as of January 1 each year and mail a notice of appraised value in the spring.
Homestead exemption
If the home is your principal residence, apply for a homestead exemption with your county appraisal district. It reduces the taxable value of your home and limits how quickly the assessed value of a homestead can rise each year. Additional exemptions are available for homeowners aged 65 or older and for those with disabilities. Your appraisal district's website explains eligibility and how to file.
Protesting your value
If you believe your appraised value is too high, you can protest. The deadline is generally May 15 or 30 days after your notice was delivered, whichever is later. Many homeowners file online and resolve it informally with the appraisal district, using recent sales of comparable homes as evidence — something we're happy to help pull together.
Paying the bill
Tax bills usually arrive in the fall and are due by January 31 of the following year. Most buyers with a mortgage pay through an escrow account, so the lender collects a portion with each monthly payment and pays the bill on your behalf.
What this means when you're shopping
- Compare the combined tax rate between cities and school districts, not just list prices.
- Ask whether a newer community — common in Prosper and Celina — sits in a MUD or PID, which can add to the rate.
- Budget using the rate and a realistic value — a seller's current bill may reflect their exemptions, not yours.