Texas Property Tax Calculator (Assessed Value & Millage Rates)

Property tax bills in Texas run on an average effective rate of 1.31%, good for a #8 national ranking, among the ten highest effective property tax rates in the country. Nationally, the average effective rate runs close to 1.0%, which puts Texas well above the national average. That's well above the South regional average of about 0.79%.

Part of the story is structural: Texas offsets its reliance on property tax, in the absence of a state income tax, with homestead exemptions and an appraisal cap that limits annual assessed-value growth on owner-occupied homes. That matters more than usual in Texas, since the state levies no income tax and leans harder on property tax revenue to fund schools, county government, and municipal services as a result.

Texas counties handle the mechanics of periodic reappraisal and millage-setting locally, so the statewide average above is a useful benchmark but actual bills still hinge on the specific county, school district, and any exemptions or appeals the owner has filed in a given year.

Texas has no state income tax and no state property tax, and funds local government almost entirely from local appraisal. Homesteads get a large school district exemption and a 10% annual cap on how fast the appraised value used for taxation can climb, and rate increases beyond a statutory threshold trigger an automatic voter approval election.

None of that detail is asked for here. This calculator works one level up, applying Texas's average effective property tax rate of 1.31% to the value you enter. That rate is the ratio of property taxes actually paid to home value across the state, so the assessment ratios, caps, and exemptions described above are already baked into it.

Working through it in order:

1. Subtract the exemption from the value you entered. The engine computes max(0, value - exemption). On the built-in $25,000 exemption scenario a $400,000 Texas home becomes $375,000.00 of taxable value.
2. Multiply that taxable figure by 1.31%. $375,000.00 at 1.31% is $4,912.50 a year, against $5,240.00 with the exemption field left at its $0 default.
3. Divide by twelve for escrow. $4,912.50 / 12 = $409.38 a month, or $436.67 on the unexempted figure.

There is no fourth step. This calculator performs no assessment-ratio conversion, no local millage lookup, no county or school-district selection and no reassessment modelling. 1.31% is a single statewide average effective rate applied flat from the first taxable dollar, and everything the Texas statutes do with ratios, classifications, caps and relief programs is already folded into that one published number rather than computed here.

One thing is worth knowing before you read the table on this page. The twelve-row schedule and the headline are computed the same way: each row subtracts the exemption you entered from that row's value and applies the 1.31% rate to what is left. With a $400,000 home and a $25,000 exemption the headline returns $4,912.50, and row 6 of the schedule, the row sitting at exactly $400,000 of value, returns $4,912.50 as well. Row 1 moves from $873.33 to $545.83 under the same entry. The column is a single series in the value you enter, so it rises without interruption from row 1 to row 12 and can be compared row to row.

Using this calculator's baseline inputs: a $400,000 home in Texas, taxed at the state's 1.31% average effective rate (rank #8 of 50 states).

1. Start with the assessed value. The home is assessed at its full $400,000.00 market value, with no homestead exemption applied in this baseline scenario.
2. Apply the effective rate. $400,000.00 × 1.31% = $5,240.00 in annual property tax, Texas's statewide average effective rate.
3. Convert to a monthly escrow. Lenders typically collect property tax in twelve equal installments alongside principal and interest: $5,240.00 ÷ 12 = $436.67 per month.
4. Now apply the built-in exemption scenario. Entering the $25,000 homestead exemption drops the taxable assessed value to $375,000.00 and the annual figure to $4,912.50, a saving of $327.50 a year. Monthly escrow moves from $436.67 to $409.38.
5. Check that against the schedule. Row 6 of the twelve-row table, the row priced at $400,000 of value, shows $4,912.50 in that same scenario, matching the headline to the cent, because the schedule subtracts the exemption before applying the 1.31% rate exactly as the headline does.

At 1.31%, Texas carries a well-above-average property tax burden, ranking #8 of 50 states. That is a real cost to weigh against the purchase price.

Nothing on this page has a bracket in it. 1.31% is charged on the first taxable dollar and on the last one, so the interesting numbers here are the slopes and the one genuine cliff the exemption input creates.

The next $10,000 of assessed value. Sweeping assessedHomeValue from $400,000 to $440,000 in $10,000 steps with a $25,000 exemption held constant, the annual figure starts at $4,912.50, then rises by exactly $131.00 at every stop. That is the whole marginal story: each additional $10,000 of assessed value in Texas costs $131.00 a year, at any value the input accepts.

The reverse question, in value terms. Sweeping value with no exemption, $300,000 returns $3,930.00, $400,000 returns $5,240.00, $500,000 returns $6,550.00 and $600,000 returns $7,860.00. To land on a target annual bill, divide it by 1.31%; the sweep confirms the relationship stays exactly linear across the whole input range because there is no second tier to cross.

The next $25,000 of exemption. Sweeping homesteadExemption from $0 to its $200,000 maximum on a $400,000 home, the bill starts at $5,240.00 and falls by $327.50 at every $25,000 step, with no step larger or smaller than any other. At the $200,000 cap the annual figure is $2,620.00, exactly half the unexempted bill, because $200,000 of exemption removes exactly half of a $400,000 taxable base.

The threshold walk, at the one place a real cliff exists. Take a $150,000 Texas home and push the exemption past the value. At a $145,000 exemption the annual tax is $65.50 on the $5,000 of taxable value that survives. At $147,500 it is $32.75. At $150,000 it is $0.00. Every further dollar of exemption past $150,000 is worth nothing at all: $152,500, $155,000 and $160,000 all return $0.00, because max(0, value - exemption) floors the taxable base at zero rather than letting it go negative. That is the only discontinuity in the model, and it is a slope that runs at $131.00 per $10,000 of value right up to the line and at zero past it, not a bracket edge.

Right method against wrong method, priced. The common error is applying the 1.31% rate to the market value and then subtracting the exemption's worth afterwards, or forgetting the exemption ordering altogether. On a $400,000 home with a $25,000 exemption the calculator returns $4,912.50. Running 1.31% against the full $400,000 first returns $5,240.00. The gap is $327.50 a year overstated on a single bill purely from applying the rate before the subtraction rather than after it. The schedule subtracts the exemption first as well, so its row-6 figure comes back at $4,912.50 and agrees with the headline rather than reproducing that error.

• The 10% homestead appraisal cap and the over-65 school tax ceiling. The cap limits year-over-year growth in taxable appraised value and the ceiling freezes the school portion in dollars; both are dynamics over time, and this calculator has no time axis. It takes one value and one exemption and returns one year's figure.
• Exemption ordering and eligibility. Texas applies the school district homestead exemption first, then optional local exemptions, then the additional over-65 and disabled-veteran amounts. This page collapses all of them into a single dollar field worth $327.50 a year per $25,000 entered, and tests eligibility for none of them.
• Specific hyper-local county and municipal millage district variations within Texas.
• Municipal Utility District (MUD) and Public Improvement District (PID) assessments. Many fast-growing Texas suburbs, particularly newer subdivisions around Houston, Austin, and Dallas-Fort Worth, sit inside a MUD or PID that levies its own additional tax to fund water, sewer, drainage, and road infrastructure. These district taxes are layered on top of the county, city, and school district rate and can push a specific subdivision's effective rate meaningfully above this calculator's 1.31% statewide average.
• Commercial vs residential assessment classification differentials.
• Property tax appeal reductions or localized board of equalization adjustments.

• Confusing Market Fair Value with Assessed Basis: Some jurisdictions assess property at fractional ratios rather than 100% of market value.
• Failing to File Homestead Paperwork: Homestead exemptions are rarely automatic; homeowners must file timely paperwork with the county appraisal district.
• Underestimating Post-Sale Supplemental Assessments: Purchasing a newly constructed or reassessed property often triggers catch-up supplemental tax bills.
• Ignoring Property Tax Appeal Windows: Missing the annual 30-to-60 day statutory protest window forfeits the right to challenge over-assessed property values for that tax year.

• U.S. Census Bureau: American Community Survey (ACS) Real Estate Assessment Benchmark Data. census.gov/programs-surveys/acs
• Texas Comptroller of Public Accounts: Property Tax Assessment Guidance. comptroller.texas.gov