Understanding Property Taxes in Texas — What Homeowners Need to Know in 2025

Understanding Property Taxes in Texas — What Homeowners Need to Know in 2025 Property taxes in Texas are the primary source of revenue for school districts, cities, counties, parks, community colleges, hospitals, municipal utility districts (water, sewage, roads, etc.) — you name it.Since Texas has no state income tax, local property (and sales) taxes take up much of the “tax pie.”Because these taxes are ad valorem — “in proportion to the estimated value of the goods or transaction concerned” (in other words, your home) — homeowners should make sure they’re not paying more than their fair share.

What’s New in 2025

Here are some key updates that homeowners and sellers should be aware of:

• The Senate Bill 4 increases the mandatory homestead exemption (for school district taxes) from $100,000 to $140,000.

• The Senate Bill 23 raises the homestead exemption for homeowners 65+ or disabled to as much as $200,000.

• A legislative package now earmarks $51 billion over the next two years toward property tax relief statewide.

• The Senate Bill 9 (still in process) would limit how much property-tax revenue certain large cities and counties can raise without voter approval — for example reducing their growth cap from 3.5% to 2.5%.

• Appraisal districts and the Texas Comptroller of Public Accounts (PTAD) continue to refine their processes: for 2025, appraisal districts must use a cap rate of 10 % for agricultural/open-space land and 7.75 % for certain classifications.

What That Means For You

• If your home is your primary residence, make sure you’ve claimed the homestead exemption.

• If you are 65 or older or have a disability, the higher exemption threshold could significantly reduce your taxable value.

• Don’t forget other applicable exemptions:

  • Veterans and surviving spouses of veterans or first responders

  • Solar or wind power devices (for solar/wind property tax exemption)

  • School‐district specific exemptions

• Review your property description carefully in the county appraisal records: land, buildings, number of bedrooms/bathrooms, garage, porches, patios, canopies, etc.

• If your home needs repairs or has deferred maintenance: Document it (photos), get three contractor bids, and include this in your protest. Taxable value may be reduced if the condition is substantiated.

• Your property is assessed as of January 1 each year at what the county believes your property would sell for in the open market. Texas is a non-disclosure state, so assessors use vendor sales data + construction-cost models.

Step-by-Step: How to Protest Your Appraised Value

1. Check your property description in the county appraisal district’s records — make sure everything (land size, improvements, etc.) is accurate.

2. Claim all eligible exemptions — primary residence homestead, senior/disabled, veteran, renewable energy devices, etc.

3. If applicable: Document needed repairs or deficiencies, gather three bids, take photographs of damage or deferred maintenance.

4. Gather comparable sales in your neighborhood — use your Realtor (you!), online real-estate sites, or hire an appraiser.

5. File your protest by the deadline (typically May 15th for many appraisal districts) using the county’s online or paper protest form — submit the evidence you gathered.

6. Attend your hearing (if required) or await the outcome.

7. If you win and your value is reduced, your tax bill should be lower (assuming tax rates don’t increase disproportionately).

Why This Matters for Sellers & Buyers in the D/FW Market

• For sellers, a significantly higher appraisal value can raise your cost of ownership and may affect buyer perception of tax burdens. Helping your sellers understand how value is determined — and how to challenge it if necessary — becomes part of your value-add as a realtor.

• For out-of-state buyers or downsizers, explaining the tax relief mechanisms (homestead exemptions, senior/disabled benefits) reassures them that Texas remains a tax-favorable state (especially given the lack of state income tax).

• For divorce or estate transitions, property tax strategy is often overlooked: Are both parties aware of the exemptions, repair documentation, and protest options? Ensuring the right paperwork is filed can reduce surprises later.

• For properties with secondary uses (e.g., rental, farm-animal/ag exemption, venue rental) it’s especially important to verify correct classification: the wrong classification can cost tens of thousands in additional taxes or trigger audits.

✅ Key Links for Filing a Protest

• Texas Comptroller of Public Accounts – “Appraisal Protests and Appeals” page: [How to protest your appraisal statewide] (PDF & online info) Texas Comptroller+1

• Travis Central Appraisal District – Protest Process for Travis County: online filing, upload evidence, etc. Travis Central Appraisal District

• Hays Central Appraisal District – Protest filing options: online, e-file, mail, in-person. Hays CAD

• Harris Central Appraisal District – iFile Protest portal for Harris County. HCAD

• Dallas Central Appraisal District – The Protest Process (PDF) for Dallas County. Dallas Central Appraisal District

💬 Final Thoughts

Understanding how Texas property taxes work—and knowing when to take action—can save you more than just money. Staying proactive with exemptions, reviewing your appraised value, and filing a protest when needed ensures you’re paying only your fair share.

Angela Holt believes that real estate isn’t just about buying and selling homes—it’s about helping her clients feel confident and informed in every part of homeownership. From property valuations to market insights, she’s here to guide you through every step.

With Gratitude,

Angela Holt

Helping North Texas homeowners move smart, save smart, and live beautifully

DFW Realtor | Kindred Real Estate at Compass

📞 469.400.6348🌐 AngelaHoltRealtor.com

📱 Follow along on social: @AngelaHoltDFWRealtor