Texas has no state income tax — but DFW property taxes are among the highest in the nation, with effective rates ranging from 1.87% to 2.18% depending on your county. For a median-priced home, that translates to $6,000–$8,300 per year in property taxes. This guide breaks down rates by county, explains every available exemption (including the 2023 expansion to $100,000), and walks you through the protest process that saves 60-70% of filers money.
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How Texas Property Taxes Work
Your property tax bill is the product of two factors: appraised value (determined by your county's Central Appraisal District) and tax rate (set by each taxing entity — city, county, school district, and special districts like MUDs and hospital districts). A single property typically pays taxes to 4-6 different entities, and the combined rate is your "effective tax rate."
School district taxes make up the largest portion — roughly 55% of your total bill. This is why families in top-rated districts like Highland Park ISD or Carroll ISD pay a premium not just in home prices but in ongoing annual taxes. The city portion varies widely: Dallas levies $0.7713 per $100, while Frisco charges $0.4466 — a significant difference that can amount to thousands of dollars per year on the same home value.
Texas law provides several powerful protections for homeowners. The 10% annual appraisal cap (reduced from 20% in 2023) limits how fast your taxable value can increase, even in rapidly appreciating markets. The $100,000 homestead exemption (expanded from $40,000 in November 2023 via Proposition 4) directly reduces the taxable value of your primary residence for school district taxes. And the over-65 tax ceiling freezes school district taxes at their current dollar amount for qualifying seniors, providing protection against both rate increases and value increases.
* Effective rates include city, county, school district, and special district taxes combined. Individual rates vary by specific address and taxing entities. Median home values from U.S. Census Bureau ACS 2022. Tax rates from county appraisal district 2024 certified tax rolls.
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Tax Exemptions & Savings Programs
Texas offers some of the most generous property tax exemptions in the country. Filing for every exemption you qualify for is one of the highest-ROI financial moves a DFW homeowner can make — yet an estimated 15-20% of eligible homeowners don't file.
General Homestead Exemption
Up to $100,000 off assessed value (school taxes)
Eligible: All homeowners using property as primary residence
Texas voters approved increasing the homestead exemption from $40,000 to $100,000 in November 2023 (Proposition 4). This saves the average DFW homeowner $1,200–$1,800 per year on school district taxes alone. You must file with your county appraisal district — it is NOT automatic. File as soon as you close on your home; the exemption applies January 1 of the following year. Some cities and counties offer additional homestead exemptions of $5,000–$20,000.
File anytime (applies next Jan 1)
Over-65 / Disability Exemption
Additional $10,000–$25,000 off assessed value + tax ceiling
Eligible: Homeowners aged 65+ or with qualifying disability
This exemption freezes your school district tax at its current dollar amount — even if your property value increases, your school tax payment stays the same. This 'tax ceiling' transfers if you move to a new homestead in Texas (proportionally adjusted). Some cities offer an additional over-65 exemption. Dallas offers a $90,000 city exemption for 65+. The surviving spouse of a 65+ homeowner can retain the tax ceiling if they were 55+ at the time of death.
File anytime after turning 65
Disabled Veteran Exemption
Partial to 100% property tax exemption
Eligible: Veterans with VA-rated service-connected disability
Exemption amount scales with disability rating: 10-29% = $5,000 off; 30-49% = $7,500; 50-69% = $10,000; 70-99% = $12,000; 100% = total exemption (zero property tax). The 100% exemption also applies to the surviving spouse if they haven't remarried, and to donated homes for 100%-disabled veterans. A veteran receiving 100% disability due to individual unemployability (TDIU) qualifies for the full exemption.
File anytime
Agricultural / Wildlife Exemption
Taxed on productive value, not market value (up to 90%+ reduction)
Eligible: Agricultural land owners meeting minimum acreage and use requirements
Properties qualifying for '1-d-1' agricultural appraisal are taxed on their productive agricultural value rather than market value. A 10-acre tract worth $500,000 at market value might be appraised at $50,000 for tax purposes if used for cattle grazing. Qualifying uses include livestock, crops, timber, beekeeping, and wildlife management. Minimum requirements vary by county (typically 10+ acres for livestock, 5+ for intensive agriculture). Converting ag-exempt land to residential triggers a 'rollback tax' — 5 years of tax difference plus 7% interest per year.
Apply by April 30
How to Protest Your Property Tax Appraisal
Protesting your property tax appraisal is free, takes 2-4 hours of preparation, and results in a reduction for 60-70% of filers. The Dallas Central Appraisal District alone processes over 200,000 protests annually. Here's a proven step-by-step process.
1
Review Your Notice of Appraised Value (April/May)
Your county appraisal district mails notices in April or early May. Compare the appraised value to what you believe your home would actually sell for. Key red flags: value increased more than 10% (check if your homestead cap is applied correctly), comparable homes in your neighborhood sold for less, or your property has condition issues not reflected in the appraisal.
2
File a Protest by the Deadline (May 15 or 30 days after notice)
File online through your county appraisal district's website (DCAD iFile, Collin CAD, Denton CAD). It's completely free. You can file on multiple grounds: market value is too high, property is unequal compared to similar properties, or the appraisal district made an error. Check 'unequal appraisal' as your protest reason — it's often the strongest ground because you're comparing your assessment to similar properties rather than arguing about overall market value.
3
Gather Your Evidence (2-3 hours of research)
Pull 5-10 comparable sales from the appraisal district's property search tool (not Zillow — use official records). Focus on homes that sold within the last 12 months within 0.5 miles of your property with similar square footage (±20%), age, and condition. Also pull the appraisal district's values for 3-5 similar homes on your street to build an 'unequal appraisal' case. Organize evidence in a simple spreadsheet: address, sale price or appraised value, square footage, year built, condition notes.
4
Document Property Condition Issues
Take dated photos of any problems that reduce your home's market value: foundation cracks or movement, outdated kitchen/bathrooms (especially if comps have updated ones), needed roof replacement, drainage issues, deferred maintenance. Get repair estimates if possible — a $15,000 foundation estimate can justify a significant reduction. The appraisal district can't inspect every home annually, so they may not know about condition issues.
5
Attend the Informal Hearing (15-30 minutes)
This is a one-on-one meeting with an appraiser. Present your comparable sales and photos calmly and professionally. The appraiser can offer a settlement on the spot. About 80% of protests are resolved at this stage. Key tip: know your target number before you walk in. If your home is appraised at $500K and your comps support $460K, open by asking for $450K to leave negotiation room. Be polite but firm — appraisers handle hundreds of cases and respect prepared homeowners.
6
Escalate to the Appraisal Review Board if Needed
If unsatisfied with the informal result, request a formal hearing before the Appraisal Review Board (ARB). This is a panel hearing where you present evidence under oath. ARB hearings result in additional reductions about 40-50% of the time. If still unsatisfied, you can pursue binding arbitration (filing fee: $500 for homes under $5M) or file suit in district court. Most homeowners find satisfaction at the informal or ARB stage.
Frequently Asked Questions
Why are property taxes so high in Texas compared to other states?▾
Texas is one of only nine states with no personal income tax. To fund public services — particularly public education, which accounts for roughly 55% of your total property tax bill — the state relies heavily on property taxes. The average effective property tax rate in Texas is 1.74%, compared to the national average of 1.07%. However, when combined with zero state income tax, many DFW residents pay less in total state/local taxes than residents of California, New York, or New Jersey. The break-even point depends on income: households earning over ~$200K typically pay less total tax in Texas.
How is my property value determined for tax purposes?▾
Your county's Central Appraisal District (CAD) determines your property's market value annually, using comparable sales, cost approach, and income approach methods. The appraised value is supposed to represent what your property would sell for on the open market as of January 1 of the tax year. Notices of Appraised Value are mailed in April/May. Texas law limits annual increases on your homestead's appraised value to 10% per year (20% before 2023's Proposition 4 lowered it), even if market values rise faster. This 10% cap is one of the most valuable homestead protections in Texas.
What percentage of property tax protests are successful in Dallas?▾
Historically, 60-70% of property tax protests in Dallas County result in some reduction. The Dallas Central Appraisal District (DCAD) processes approximately 200,000 protests annually. The median reduction is typically 5-10% of appraised value, translating to $300-$800 in annual tax savings. Informal hearings (the first stage) resolve about 80% of protests. If you're unsatisfied with the informal result, you can escalate to the Appraisal Review Board (ARB) formal hearing, which resolves the remaining cases. Professional property tax consultants typically achieve larger reductions than DIY protesters.
Should I hire a property tax consultant or protest myself?▾
For most homeowners, DIY protesting is sufficient — especially if you have strong comparable sales data showing your home is over-appraised. However, professional consultants (firms like Ownwell, NTPTS, or local firms) have institutional knowledge of appraisal district practices, access to commercial comparable databases, and experience presenting cases. Most charge a contingency fee of 30-40% of first-year savings (you pay nothing if they don't reduce your taxes). For a home appraised at $500K+ where you believe the over-appraisal exceeds 10%, a consultant often recovers more than their fee.
When are DFW property taxes due, and what happens if I'm late?▾
Property tax bills are mailed in October and are due by January 31 of the following year. After February 1, a 6% penalty and 1% interest charge applies immediately. Penalties increase monthly: 8% in March, 10% in April, 12% in May, and 12% plus 20% attorney collection fees after July 1. If you're delinquent for multiple years, the taxing entity can file a tax lien and ultimately foreclose. If your mortgage includes an escrow account, your lender pays property taxes on your behalf — but escrow shortages can cause significant payment increases.
How does the Texas 10% homestead cap work?▾
Once you have a homestead exemption, your appraised value for tax purposes cannot increase by more than 10% per year, regardless of actual market value changes. This is incredibly valuable in fast-appreciating areas. Example: If your home's market value jumps from $400K to $500K in one year, your taxable appraised value can only increase from $400K to $440K. The gap between market value and capped appraised value grows over time, providing increasing tax savings the longer you own your home. The cap resets when the property is sold, so new buyers pay taxes on full market value.
Data Sources: Property tax rates from Dallas Central Appraisal District (DCAD), Collin Central Appraisal District, Denton Central Appraisal District, Tarrant Appraisal District, and Rockwall Central Appraisal District — 2024 certified tax rolls. Median home values from U.S. Census Bureau American Community Survey (ACS) 5-Year Estimates, 2022. Exemption details from Texas Property Tax Code Chapter 11 and the Texas Comptroller of Public Accounts. Protest success rates based on DCAD annual report data. All figures are approximate and subject to annual revision.