Texas Property Tax System: A Plain-Language Guide

By The Change Lab -- via manual_seed -- Apr 18, 2026

Overview

Texas has no state income tax. Instead, property taxes fund almost everything — schools, counties, cities, community colleges, hospital districts, MUDs, and more. Harris County homeowners pay some of the highest property taxes in the country. Understanding how the system works is the first step to making sure you are not overpaying.

Source: Harris County Appraisal District; Texas Comptroller

The Framework

Key Ideas

How it works:

Appraisal: The Harris County Appraisal District (HCAD) estimates the market value of your property every year as of January 1.
Exemptions: You subtract any exemptions you qualify for (homestead, over-65, disability, veteran).
Tax rates: Each taxing entity (school district, city, county, MUD, etc.) sets its own rate. Your total tax rate is all of them added together — typically $2.00-$3.50 per $100 of assessed value in Houston.
Bill: You get one combined tax bill in October. Due January 31.

Homestead exemption — DO NOT SKIP THIS:

Reduces your school district taxable value by $100,000 and caps your appraised value increase to 10% per year.
You must apply. It is not automatic. Apply at hcad.org.
If you own your home and live in it, and you have NOT filed a homestead exemption, you are overpaying your taxes.

Over-65 and disability exemptions: Additional reductions of $10,000-$25,000+ from school district and other entities. Plus a school district tax ceiling — your school taxes are frozen at the amount you paid the year you turned 65 or qualified for disability.

Source: HCAD; Texas Tax Code Chapter 11

Put It Into Practice

Practice

Step 1: File your homestead exemption

Apply online at hcad.org or in person at 13013 Northwest Freeway, Houston, TX 77040.
You need: Texas driver's license or ID matching your property address, and your property account number (on your tax bill).
Deadline: April 30 of the tax year (but you can file up to 2 years late).

Step 2: Check your appraisal every year

HCAD mails appraisal notices in April. Review the proposed value.
Look up comparable sales in your neighborhood at hcad.org. If your appraisal is higher than what similar homes sold for, you have a case to protest.

Step 3: Protest if the value is too high

File a protest online at hcad.org by May 15 (or 30 days after your notice, whichever is later).
You will get an informal hearing first. Bring: comparable sales data, photos of any property damage or issues, and your own estimate of market value.
If the informal hearing does not resolve it, you go to the Appraisal Review Board (ARB) for a formal hearing. You present your case, HCAD presents theirs, the board decides.
Protesting is free. You do not need a lawyer. Thousands of homeowners do this successfully every year.

Resources