Property taxes are usually higher in Preston Hollow than in Highland Park or University Park at the same home value. Using 2025 rates, the combined rate was about $2.23 per $100 of value for a home in the City of Dallas and Dallas ISD, compared with about $1.57 in the Town of Highland Park and about $1.59 in University Park, both in Highland Park ISD. Before exemptions, that is roughly $13,000 a year more on a $2 million home.
Those combined figures come from 2025 Dallas County rate compilations. The school district is the biggest single piece of the difference: Highland Park ISD's rate was about $0.835 per $100, the lowest of the school districts in Dallas County, while Dallas ISD's was about $0.99, as reported by The Dallas Morning News on March 24, 2026.
The Agency Dallas provides buyer and seller representation in Preston Hollow and the Park Cities, and families comparing the two ask about taxes early. Here is how to compare them on a specific home.
Why are Preston Hollow property taxes higher than in the Park Cities?
A Texas property tax bill is the sum of every taxing unit on the parcel. Preston Hollow and the Park Cities share some units and differ on the two largest ones.
- School district. Most of Preston Hollow is in Dallas ISD. The Park Cities are in Highland Park ISD. This is usually the largest line on the bill, and HPISD's rate is lower.
- City. Preston Hollow is in the City of Dallas. The Park Cities are two separate municipalities, the Town of Highland Park and the City of University Park. The Town of Highland Park's rate, about $0.199 per $100, was the lowest of any Dallas County city in 2025.
- Shared units. All three areas pay Dallas County, the Parkland Hospital District, and Dallas College.
Because rates are set each year, recheck them for the current tax year before you rely on any comparison.
How much are property taxes on a $2 million home in Preston Hollow vs. Highland Park?
At 2025 combined rates, and before any exemptions, annual taxes on a home appraised at $2 million work out to about:
- Preston Hollow (City of Dallas, Dallas ISD): about $44,500
- University Park (Highland Park ISD): about $31,700
- Town of Highland Park (Highland Park ISD): about $31,400
These are illustrations, not quotes. Your bill depends on the appraised value the Dallas Central Appraisal District assigns, the exemptions on the account, and the rates adopted for the year. Some addresses near the edges of these areas fall in a different school district or city, so check the parcel.
How do homestead exemptions change the comparison?
If the home is your primary residence, apply for the residence homestead exemption with DCAD. The Texas Comptroller lists the general school district homestead exemption at $140,000 of value, effective with the 2025 tax year. Cities may offer an optional percentage homestead exemption on their own portion; the Town of Highland Park, for example, offers 20%. Homeowners age 65 or older may qualify for additional exemptions and a school tax ceiling. Exemptions narrow the dollar gap slightly but do not erase it at higher values.
How do I check the taxes on a specific Preston Hollow or Park Cities home?
- Look up the property on the Dallas Central Appraisal District site and note the appraised value and every taxing unit listed.
- Confirm the school district and city. Do not assume from the ZIP code.
- Check the current exemptions on the account. A seller's exemptions end when the home sells, so your first bill may differ from theirs.
- Multiply the taxable value for each unit by that unit's current rate and add them up.
- Ask your agent to compare the result with recent sales so you can estimate how the purchase price may affect the next appraisal.
Is a lower tax bill a reason to choose the Park Cities over Preston Hollow?
Taxes are one line in the budget. The choice usually turns on lot size, schools, and the kind of house you want. Preston Hollow is known for larger lots and estate properties, and families there choose between Dallas ISD and the many private schools nearby. The Park Cities offer Highland Park ISD and smaller lots close to the shops and parks of both towns.
Compare the full ownership cost of the specific homes you are considering, including insurance, maintenance, and any renovation, not just the tax rate. The Agency Dallas can run that comparison on the homes you are weighing. For more on each side, see what makes Old Preston Hollow different, buying in Preston Hollow: lots, foundations, and what to check first, Dallas neighborhoods near private schools, and how to get your kids into Highland Park ISD schools.
Frequently asked questions
Are property taxes higher in Preston Hollow or Highland Park?
Preston Hollow, at the same home value. Using 2025 rates, the combined rate was about $2.23 per $100 in the City of Dallas and Dallas ISD, versus about $1.57 in the Town of Highland Park with Highland Park ISD. On a $2 million home, that is roughly $13,000 more a year before exemptions.
What school district is Preston Hollow in?
Most of Preston Hollow is in the City of Dallas and Dallas ISD. Because school district and city lines do not always follow neighborhood names, confirm the specific parcel on the Dallas Central Appraisal District site, which lists every taxing unit for the property, including the school district.
What is the property tax rate in University Park, Texas?
Using 2025 rates, the combined rate for a home in the City of University Park and Highland Park ISD was about $1.59 per $100 of value, including the city, school district, Dallas County, Parkland Hospital District, and Dallas College. Rates are adopted each year, so confirm current rates and exemptions for the specific account.
Does the homestead exemption apply in Dallas ISD and Highland Park ISD?
Yes. The general school district homestead exemption is statewide, and the Texas Comptroller lists it at $140,000 of value, effective with the 2025 tax year. Apply with the Dallas Central Appraisal District once the home is your primary residence. Cities may add an optional percentage exemption on their own portion of the bill.
Sources: The Dallas Morning News, "Property taxes: Here's what Dallas-Fort Worth residents are paying," March 24, 2026; 2025 Dallas County combined rate compilations; Town of Highland Park, Notice About 2025 Tax Rates; Texas Comptroller of Public Accounts, property tax exemptions. Figures are illustrations before exemptions; confirm your account with DCAD.
