A Complete Guide to Property Taxes in North Texas

Texas has no state income tax, and that is a genuine financial advantage for residents — but the tradeoff is property taxes that are among the highest in the nation. Understanding how North Texas property taxes work is essential for any homeowner or prospective buyer. Getting this wrong can mean thousands of dollars in unexpected annual costs.

Property taxes in Texas are administered at the county level through central appraisal districts. Dallas, Tarrant, Collin, and Denton counties each have their own appraisal district that determines the assessed value of every property annually. Your tax bill is then calculated based on that assessed value multiplied by the combined rates of all taxing entities that apply to your address — which typically includes the county, the city or town, the school district, and potentially a Municipal Utility District (MUD) or other special purpose district.

The most important action any Texas homeowner can take is filing for the homestead exemption, which reduces your taxable value by at least $100,000 (as of 2024 state law) and also caps annual appraisal increases at 10% for your primary residence. If you have not yet filed your homestead exemption, stop reading this and do it today.