Texas has no state income tax, which is one reason many people look at Houston. The trade-off is that property taxes carry more of the load for schools and local services. Knowing how the bill is built, and which exemptions you can claim, helps you budget accurately and avoid surprises after closing.
Who sets the value and who sends the bill
Two offices do different jobs. The appraisal district for your county sets your property’s value as of January 1 and handles exemptions and protests. In Harris County that is the Harris Central Appraisal District (HCAD), and Fort Bend, Montgomery, Brazoria and Galveston counties each have their own. The county tax assessor-collector, such as the Harris County Tax Office, sends the bill and collects payment.
Why the bill has several lines
A single Houston-area bill can include the county, school district, city, flood control district, hospital district, community college and, in many newer subdivisions, a municipal utility district (MUD). Each unit sets its own rate, so two homes with the same value can have different bills.
When bills arrive and when they are due
Bills for the 2026 tax year are going out this fall, and taxes are due by January 31, 2027. Unpaid taxes become delinquent on February 1, when penalty and interest begin to accrue. If your mortgage has an escrow account, your lender usually pays the bill from escrow. If it does not, you are responsible for paying whether or not a statement reaches you.
The homestead exemption
A residence homestead exemption lowers the taxable value of the home you live in. Texas voters approved Proposition 13 in November 2025, raising the school district homestead exemption from $100,000 to $140,000, effective for the 2025 tax year. Homeowners who are 65 or older, or disabled, receive an additional $60,000 school district exemption. Other taxing units may offer their own exemptions, and amounts vary, so check your appraisal district’s website for the list that applies to your address.
You apply with the appraisal district in the county where the home sits, not with the tax office, and the application is free. Once approved, the exemption generally carries over year to year, but tell the district if you move or your circumstances change. Qualification is generally tied to owning and living in the home on January 1, so a home bought this fall will usually qualify beginning with the 2027 tax year. The usual filing deadline is April 30, and the district can tell you about late applications.
The 10% homestead cap
Once a home has had a homestead exemption, the appraised value used to calculate taxes generally cannot rise more than 10% a year, even if market value climbs faster. The cap generally starts the year after your first homestead year, and new improvements such as an addition can raise the capped value. The cap applies to taxable value, not to the market value the district reports.
If you think the value is too high
You can protest your value with the appraisal district. The deadline is generally May 15 or 30 days after the notice is mailed, whichever is later.
What this means when you buy
Budget with an estimate of taxes at your purchase price, not the seller’s current bill, because the seller’s bill may reflect an exemption or cap that does not carry over to you. Ask your agent to help you estimate taxes for the address, check whether it is in a MUD, and share the estimate with your lender so your monthly payment is realistic.
Plan your first year
Our free Houston Property Tax and Homestead Checklist for New Homeowners lists what to confirm before and after closing. If you are still planning the move, see Relocating to Houston and our Houston Relocation Planner, or contact the office to talk with an agent.
This article is general information, not tax or legal advice. Confirm exemptions, deadlines and amounts with your appraisal district or a tax professional. Sources: Texas Comptroller, property tax; Texas Senate Joint Resolution 2 (89th Legislature); Harris Central Appraisal District; Harris County Tax Office. Image: Kelly Sikkema on Unsplash.
