Short answer
Texas has no state property tax and no personal income tax. School districts, cities, counties and special districts set their own property tax rates on values set by county appraisal districts [1][4]. In November 2025, voters approved raising the school homestead exemption from $100,000 to $140,000, and to $200,000 for homeowners 65 or older or disabled [5][6][7].
Who levies the tax
According to the Texas Comptroller, Texas has no state property tax; the state abolished all forms of state property taxation in 1982 [1][8]. Instead, more than 4,796 local taxing units, including school districts, cities, counties and special districts, assess property taxes, and each governing body decides how much revenue it wants to raise and sets its own rate [1].
County appraisal districts value property as of Jan. 1 each year but do not levy taxes themselves [1]. Owners who dispute a value or a denied exemption can protest to an appraisal review board, which begins hearing protests around May 15 [1]. Bills are generally due by Jan. 31 of the following year, and penalties and interest begin accruing Feb. 1 [1].
Why Texas has no state income tax
Texas does not tax individuals' wages. In November 2019, voters approved Proposition 4, which added a ban on a state personal income tax to the Texas Constitution, by 74% to 26% [4]. Before that amendment, any income tax law had to be approved by voters in a statewide referendum; with the ban in the constitution, repealing it now requires a two-thirds vote in each legislative chamber and a statewide vote [4].
In November 2025, voters also approved Proposition 2, which bars the state from taxing capital gains [5][9]. The Comptroller describes the property tax as an essential revenue source for local governments in Texas [8].
Homestead exemptions and the appraisal cap
A homestead exemption removes part of a home's value from taxation. As listed by the Comptroller, school districts must provide a $140,000 exemption on a residence homestead, plus an additional $60,000 for homeowners 65 or older or disabled [2]. Any taxing unit may also adopt a local-option exemption of up to 20% of a homestead's appraised value, with a minimum of $5,000 [2].
Texas also limits how fast a homestead's taxable value can grow: the appraised value of a qualifying homestead may not rise more than 10% per year, plus the value of new improvements [3]. A separate 20% annual limit applies to other real property valued at or below a set threshold ($5.16 million for 2025 and $5.32 million for 2026), and that limit expires Dec. 31, 2026 [3].
The 2025 changes and the vote
The Legislature sent several property tax amendments to the Nov. 4, 2025, ballot, and voters approved all 17 propositions on that ballot [6][9]. Proposition 13 raised the school homestead exemption from $100,000 to $140,000, and Proposition 11 raised the additional exemption for homeowners 65 or older or disabled from $10,000 to $60,000, for a combined $200,000 for those homeowners [5][7].
Proposition 9 exempts up to $125,000 of business inventory and equipment from local property taxes, up from a $2,500 threshold [5][6]. The Texas Tribune estimated a typical home valued at $302,000 would have saved about $490 in school taxes had the $140,000 exemption applied the year before [6]. CBS News Texas reported the Proposition 13 change affects nearly 5.7 million homeowners [7].
The state pays for the school-tax reductions. The Texas Tribune reported that Texas will spend $51 billion over two years on property tax cuts, and that Proposition 13 alone could cost the state more than $2.7 billion in the 2026–2027 budget cycle [5][6]. Cities, counties and other local governments that tax business inventory must make up the revenue lost under Proposition 9 themselves [6].
Common questions
- Does Texas have a state income tax?
- No. Since voters approved Proposition 4 in 2019, the Texas Constitution bans a state personal income tax [4].
- What is the Texas school homestead exemption in 2026?
- $140,000, plus an additional $60,000 for homeowners 65 or older or disabled, according to the Texas Comptroller [2].
- Did Texas voters approve the 2025 property tax changes?
- Yes. Voters approved Propositions 9, 11 and 13, along with every other proposition, on Nov. 4, 2025 [6][9].
- Who sets my property tax rate?
- Your local taxing units, such as your school district, city and county. The state does not set rates or collect property tax [1].
Sources
- Property Tax System Basics, Texas Comptroller of Public Accounts, 2026
- Property Tax Exemptions, Texas Comptroller of Public Accounts, 2026
- Valuing Property, Texas Comptroller of Public Accounts, 2026
- Texas voters approve Proposition 4, which bans a state income tax, Ballotpedia News, 2019-11-11
- What are the 17 Texas propositions on the November ballot?, The Texas Tribune, 2025-09-22
- Voters OK property tax breaks for Texas homeowners, businesses, The Texas Tribune, 2025-11-04
- Texans overwhelmingly approve propositions to increase homestead exemptions, CBS News Texas, 2025-11-05
- The (Long, Long) History of the Texas Property Tax, Texas Comptroller of Public Accounts, Fiscal Notes, 2015
- All 17 Texas Constitutional Amendments Pass in 2025 Election, Texas Policy Research, 2025-11-05