Texas has no state personal income tax, so local property taxes carry more of the load for schools, counties, and cities. Whether you come out ahead depends on your income, the home you buy, and its local tax rates. Compare your current state income tax with the actual property tax on homes you are considering.
Why does Texas lean on property taxes?
Texas does not levy a personal income tax (Texas Comptroller of Public Accounts). For a household moving from a state with a meaningful income tax, the paycheck usually gets larger. The property tax bill, however, can be larger than what you paid before, especially on a higher-priced home.
The fair comparison is total cost: your state income tax today versus Texas property tax on the specific home you plan to buy.
How is a Texas property tax bill built?
A Texas property tax bill is not one tax. It is a stack of separate levies from every local government whose boundaries include your home. Each one sets its own rate, expressed per $100 of taxable value. Common taxing units include:
- The school district. Usually the largest single piece of the bill.
- The county. Funds services such as courts and roads.
- The city. Applies if the home is inside city limits.
- Special districts. Depending on location, these can include a hospital district, a community college district, a municipal utility district (MUD), or a public improvement district (PID).
Two homes at the same price can carry different tax bills because of their school district, city, or a MUD or PID. If you are looking at newer communities on the edges of the metro, read our guide to MUD and PID disclosures in Texas before you make an offer.
How does the homestead exemption lower the bill?
Once a home is your principal residence, you can apply for a residence homestead exemption. For school district taxes, the exemption is $140,000 of appraised value after voters approved Proposition 13 in November 2025, and homeowners who are 65 or older or disabled receive an additional $60,000 (Texas Comptroller of Public Accounts, Texas Tax Code Section 11.13). The standard filing deadline is April 30, and late applications are allowed up to two years after the delinquency date.
That $140,000 figure applies to the school district portion. Some counties and cities offer their own optional homestead exemptions, which vary by location. Our post on when you can claim the homestead exemption after buying in Texas covers timing in detail.
What does that look like in numbers?
A clearly labeled hypothetical, using made-up numbers to show the arithmetic:
- Hypothetical appraised value: $800,000.
- Subtract the $140,000 school district homestead exemption: $800,000 minus $140,000 equals $660,000 of taxable value for school taxes.
- Hypothetical school district rate of $1.00 per $100: $660,000 divided by 100, times $1.00, equals $6,600 in school district tax.
- Repeat for the county, city, and any special districts, using each one's rate and any exemptions it offers, then add them together.
Actual rates will differ. Repeat the method for any real home.
What is the 10% homestead appraisal cap?
Texas limits how fast the appraised value of a homestead can rise for tax purposes. Under Texas Tax Code Section 23.23, the appraised value of a qualified residence homestead generally cannot increase by more than 10% per year, plus the value of any new improvements. The cap begins to apply after you have qualified for the homestead exemption, so it protects owners who stay put in a rising market.
Two points for relocating buyers. First, the cap belongs to the owner, not the house, so when you buy, the appraisal district can value the home at full market value. Do not assume the seller's current tax bill will be yours. Second, the cap limits appraised value, not your total tax bill, because tax rates can still change from year to year.
Can I protest my property taxes in Texas?
Yes. Owners can protest their appraised value with the appraisal review board. In general, a protest must be filed by May 15 or 30 days after the appraisal notice is delivered, whichever is later (Texas Comptroller of Public Accounts, Property Taxpayer Remedies). You can file on your own or hire a property tax consultant.
How do I compare my total cost before I move?
You can estimate the tax on any specific home yourself. A practical process:
- Find the property on the county appraisal district website. In North Texas that includes the Dallas Central Appraisal District, Tarrant Appraisal District, Collin Central Appraisal District, and Denton Central Appraisal District.
- Note the appraised value and the list of taxing units shown for that property.
- Look up the current rate for each taxing unit. Appraisal district sites and county tax assessor-collector sites typically publish them.
- Apply the exemptions you would qualify for, starting with the school district homestead exemption.
- Add up the levies to estimate an annual bill.
- Compare that figure with the state income tax you pay today, using last year's return.
A CPA should review the full comparison, since your income, deductions, and other taxes all affect the answer.
The Agency Dallas Relocation Division helps buyers relocating to Dallas-Fort Worth compare homes on total cost of ownership, including the property tax picture, before they commit.
How can our Relocation Division help?
If you are comparing states, send us where you are moving from and when, along with the areas or school districts you are considering. Use the form on our Relocation Division page or call (469) 839-6020. Our agents follow up within one business day and can pull appraisal district details on the homes you like.
The Agency Dallas Relocation Division works with buyers relocating from out of state, with local lenders, inspectors, and title lined up so the numbers are clear before you write an offer. See how our relocation program works.
Frequently asked questions
Does Texas have a state income tax?
No. Texas does not levy a personal income tax, according to the Texas Comptroller of Public Accounts. Local governments rely more on property taxes instead. Federal income tax still applies. If you move partway through a year, your CPA can explain how your former state treats part-year residency on your final return there.
Are Texas property taxes higher than in other states?
Texas property tax rates are often higher than in many states, which is the tradeoff for having no state income tax. Whether your total tax burden rises or falls depends on your income and the specific home. Compare your current state income tax with the estimated property tax on homes you are considering to see the real difference.
When can I apply for the homestead exemption after I move?
You can apply once the home is your principal residence. The standard filing deadline is April 30, with late filing allowed up to two years after the delinquency date. The school district exemption is $140,000 of appraised value, plus $60,000 more for owners who are 65 or older or disabled, per the Texas Comptroller.
Will my tax bill match the seller's tax bill?
Not necessarily. The seller may have had a homestead cap or other exemptions tied to them as the owner. After a sale, the appraisal district can value the home at market value, and your exemptions start once you qualify. Estimate your own bill using the current appraised value and rates rather than relying on the seller's figure.
Where can I find the tax rate for a specific Dallas-Fort Worth home?
Search the address on the county appraisal district website, such as the Dallas Central Appraisal District, Tarrant Appraisal District, Collin Central Appraisal District, or Denton Central Appraisal District. The record lists each taxing unit. Rates are published by the appraisal district or county tax assessor-collector. Our agents can help you locate them.
Sources
- Texas Comptroller of Public Accounts, Texas Taxes (no state personal income tax)
- Texas Comptroller of Public Accounts, Residence Homestead Exemption (Texas Tax Code Section 11.13)
- Texas Tax Code Section 23.23, Limitation on Appraised Value of Residence Homestead
- Texas Comptroller of Public Accounts, Property Taxpayer Remedies
Verified October 2026.
