Real Estate Taxes in Texas

Taxes in Texas

Welcome to the state of Texas!

If you moved to Texas from another state or just contemplating your move to Texas, you will find that taxation in Texas is quite different from other states. Texas has lower tax burden than most of the states, but there are still a number of taxes you have to pay. Here are the highlights of the Texas state taxes:

#1: There is NO income tax in the state of Texas. That's right, you owe ZERO and you don't even have to file a State Income Tax Return.

#2: There is NO state property (or real estate) tax in the state of Texas. Instead, property tax in Texas is a locally assessed and locally administered tax.

#3: The Texas state sales and use tax rate is 6.25 percent, but local taxing jurisdictions (cities, counties, special-purpose districts and transit authorities) also may impose sales and use tax up to 2 percent for a total maximum combined rate of 8.25 percent.

Property tax brings in the most money of all taxes available to local governments to pay for schools, roads, police and firemen, emergency response services, libraries, parks and other services provided by local governments.

Residence Homestead Exemption

If your Texas house is your principal residence you may apply for homestead exemptions. Homestead exemptions remove part of your home's value from taxation thus lowering your taxes.

Besides the General Residence Homestead Exemption, you may qualify for additional exemptions available for to following categories:

• Disabled Person
• Person Age 65 or Older (or Surviving Spouse)
• 100 Percent Disabled Veteran (or Surviving Spouse)
• Surviving Spouse of an Armed Services Member Killed or Fatally Injured in the Line of Duty
• Surviving Spouse of a First Responder Killed in the Line of Duty
• Donated Residence of Partially Disabled Veteran (or Surviving Spouse)

Property owners applying for a residence homestead exemption should file an Application for Residential Homestead Exemption (Form 50-114) and supporting documentation with the appraisal district in each county in which the property is located. Do not file this form with the Texas Comptroller of Public Accounts.

Additional resources on taxes in Texas

Below is a list of resources that may help you navigating the labyrinth of the laws and regulations pertaining to the property taxes in the state of Texas.

• A Guide to Taxes in Texas (financial advisers site)
• Texas Taxes and Fees (official texas.gov site)
• Property Tax Assistance (official texas.gov site)
• Residence Homestead Exemption Frequently Asked Questions (official texas.gov site)
• Residence Homestead Exemption Application (Form 50-114 - PDF download)
• Property Tax Exemptions (summary of the exemption provisions - PDF download)
• Directory of local appraisal districts and tax offices (contact information by county)