Saying you pay “Texas property tax” is like saying you pay “Texas weather.” The experience changes dramatically depending on exactly where you are. A $400,000 home in Fort Bend County can carry a property tax bill of $10,000 or more per year, while the same valued home in a rural East Texas county might come in under $4,500. That gap, often exceeding $5,000 annually on identical home values, is entirely the result of which taxing entities sit on top of your specific address.
Texas has 254 counties, and within those counties there are thousands of overlapping school districts, cities, Municipal Utility Districts, hospital districts, and special purpose districts, each setting its own tax rate independently. The combined effective rate for a typical Texas homeowner lands between 2.0% and 2.5% of assessed value, well above the national average of roughly 0.99%, but the spread from the lowest-rate to highest-rate areas is enormous.
This article compares the effective property tax rates in the major Texas counties that most homeowners care about, explains why certain counties are so much more expensive, and shows you how to use this information when making one of the biggest financial decisions of your life.
Why Texas Property Tax Rates Vary So Much
Before looking at specific numbers, understanding the structure behind the variation helps everything else make sense. Your property tax bill is not set by a single entity. It is the sum of rates from every taxing jurisdiction that covers your property, and a typical Texas homeowner pays taxes to four, five, or sometimes six separate entities simultaneously.
School district tax is almost always the largest component, often accounting for 50% to 65% of the total bill. School district rates generally run between 1.0% and 1.3%, and they vary because each district sets its own Maintenance and Operations rate and may carry voter-approved bond debt at different levels. A district that just passed a $500 million bond package will have a higher rate than a neighboring district without one.
County tax covers county roads, courts, sheriff, jails, and general administration. County rates typically run 0.30% to 0.50%, a smaller piece of the bill but still meaningful.
City tax applies only if you live inside incorporated city limits. City rates range from 0.30% to 0.70% across Texas metros. Unincorporated areas outside city limits pay no city tax, which is one reason some buyers prefer homes just outside city boundaries.
Municipal Utility Districts and special districts are the wildcard. MUDs fund water, sewer, drainage, and road infrastructure in newer developments, and their rates can add 0.20% to 1.0% on top of everything else. This is why brand-new subdivisions in Katy, Cypress, Pearland, and the north Dallas suburbs often carry the highest total tax rates in the state. The infrastructure had to be built from scratch, and MUD bonds are repaid through property tax.
Hospital districts, community college districts, and emergency service districts add smaller components, typically 0.05% to 0.20% each.
When you stack all of these together, the combined rate for a specific address can range from under 1.5% in certain unincorporated rural areas to above 2.5% in MUD-heavy suburban developments. Two houses on the same street can have different total rates if one sits inside a MUD boundary and the other does not.
Major Texas Counties Compared
The following comparison covers the counties that matter most for homebuyers and current homeowners. These are the counties where the majority of Texas home purchases happen and where small rate differences translate to large dollar amounts because home values are high.
Harris County (Houston Metro)
Harris County is the most populous county in Texas and one of the largest in the nation. The typical combined effective property tax rate for a homeowner inside Houston city limits runs approximately 2.0% to 2.3%, depending on the school district and whether a MUD applies.
Houston ISD, the largest school district in the county, carries a rate of approximately 1.09%. Combined with the City of Houston rate near 0.52%, Harris County taxes near 0.36%, and community college and hospital district assessments, a homesteaded property inside Houston and HISD typically pays around 2.07% effective. Properties in Cy-Fair ISD or Klein ISD can be slightly higher or lower depending on bond debt levels.
The major cost driver in Harris County is MUD tax in newer suburban areas. Developments in Cypress, Katy’s Harris County portion, and north Houston carry MUD rates of 0.40% to 0.90%, pushing total effective rates above 2.5% in some neighborhoods. Established neighborhoods inside the 610 Loop or Beltway 8 with no MUD tax tend to be at the lower end of the Harris County range.
On a $400,000 home in Houston with the homestead exemption, expect an annual tax bill of approximately $6,500 to $8,500 depending on exact location and district overlaps.
Dallas County
Dallas County’s combined effective rates generally fall between 2.1% and 2.5%, making it slightly higher than Harris County on average. Dallas ISD carries a school tax rate around 1.12%, and the City of Dallas rate is approximately 0.74%, which is notably higher than Houston’s city rate.
Highland Park and University Park, the two wealthy enclaves inside Dallas County, have their own school district, Highland Park ISD, with a lower school rate but extremely high home values that produce large absolute tax bills. A $1.5 million home in Highland Park still generates a substantial annual tax obligation even at a lower rate.
Suburban areas like Richardson, Garland, and Mesquite each have their own city rates and school districts, producing varying combined rates. Richardson ISD’s rate is slightly lower than Dallas ISD, which can save homeowners several hundred dollars per year on comparable properties.
On a $400,000 home in Dallas with the homestead exemption, expect an annual property tax bill of approximately $7,000 to $9,000.
Travis County (Austin Metro)
Travis County consistently ranks among the highest property tax burdens in the state, driven by the combination of high home values and relatively high combined rates. The median annual property tax paid in Travis County is approximately $7,500, one of the highest in Texas.
Austin ISD’s school tax rate is approximately 1.05%, and the City of Austin rate is around 0.44%. Travis County’s own rate, including healthcare district and other assessments, adds approximately 0.35%. Combined effective rates for a typical homesteaded property run 2.0% to 2.3%.
The saving grace for Travis County homeowners has been the recent decline in home values from the 2021-2022 pandemic peak. Assessed values have come down in many Austin neighborhoods, partially offsetting the rate increases. However, Austin remains one of the most expensive Texas metros for property tax on an absolute dollar basis because even post-correction home values are significantly above the statewide median.
On a $500,000 home in Austin with the homestead exemption, expect an annual property tax bill of approximately $8,500 to $10,500.
Collin County (North Dallas Suburbs)
Collin County, covering Plano, Frisco, McKinney, Allen, and other fast-growing north Dallas suburbs, has effective combined rates of approximately 2.0% to 2.4%. Frisco ISD and McKinney ISD carry school rates influenced by rapid growth and bond-funded school construction, which pushes rates slightly above some established districts.
Collin County’s residential growth has been among the fastest in the country over the past decade, and new developments frequently carry MUD taxes. A new home in a Frisco master-planned community can face a total effective rate exceeding 2.3%, while an established home in central Plano without MUD tax may sit closer to 2.0%.
On a $450,000 home in Collin County with the homestead exemption, expect an annual property tax bill of approximately $7,500 to $9,500.
Fort Bend County (Southwest Houston Suburbs)
Fort Bend County consistently carries some of the highest combined effective property tax rates in the state, often ranging from 2.3% to 2.7%. Katy, Sugar Land, Missouri City, and Richmond are the major residential areas.
Katy ISD, which covers much of Fort Bend County’s residential development, has a school rate of approximately 1.11%. On top of that, many Katy-area developments carry heavy MUD tax loads because the area was largely undeveloped farmland before the residential boom. MUD rates of 0.60% to 0.95% are common, and when stacked with county, city, and school taxes, total effective rates can reach 2.6% or higher.
Fort Bend is the county where the MUD impact is most visible in Texas. A $400,000 home in a newer Katy subdivision can easily carry an annual property tax bill of $9,000 to $10,500, making it one of the most expensive places in the state for property tax on a middle-class home.
Bexar County (San Antonio Metro)
Bexar County offers somewhat lower effective rates than the Dallas and Houston metros, generally running 1.9% to 2.3%. San Antonio ISD and Northside ISD are the two largest school districts, with rates near 1.05% to 1.15%.
San Antonio’s city rate is approximately 0.56%, and Bexar County’s combined county rate is around 0.30%. The relative absence of heavy MUD tax loads compared to Fort Bend or newer Collin County developments keeps total rates lower than the north Texas and Houston suburbs.
On a $350,000 home in San Antonio with the homestead exemption, expect an annual property tax bill of approximately $5,500 to $7,000. Bexar County is often one of the better value propositions among Texas’s major metros when property tax is weighed against home prices and amenities.
Tarrant County (Fort Worth Metro)
Tarrant County’s effective rates fall in the 2.0% to 2.4% range, comparable to Dallas County. Fort Worth ISD carries a school rate near 1.10%, and the City of Fort Worth rate is approximately 0.61%.
Arlington, another major city in Tarrant County, has its own ISD and city rate, producing a slightly different combined rate. Newer developments in the far north and south of the county carry MUD and PID taxes that push total rates toward the higher end.
On a $380,000 home in Fort Worth with the homestead exemption, expect an annual property tax bill of approximately $6,500 to $8,000.
Williamson County (Round Rock / North Austin)
Williamson County covers Round Rock, Georgetown, Cedar Park, and the fast-growing communities north of Austin. Effective combined rates run approximately 1.7% to 2.2%, making it somewhat lower than Travis County despite being part of the same metro area.
Round Rock ISD carries a lower school rate than Austin ISD, and some parts of Williamson County benefit from being outside city limits, eliminating the city tax component. However, new developments in the eastern part of the county, particularly around Hutto and Taylor, carry MUD and PID assessments that push rates higher.
On a $400,000 home in Round Rock with the homestead exemption, expect an annual property tax bill of approximately $6,000 to $7,500. This is one reason many Austin-area buyers have migrated north into Williamson County.
How to Use This Information When Buying a Home
The single most important takeaway for homebuyers is that the listed home price is not your true housing cost in Texas. A $400,000 home in Fort Bend County with a 2.5% effective rate costs $10,000 per year in property tax, while the same priced home in a rural county at 1.5% costs $6,000. That $4,000 annual difference is equivalent to roughly $330 per month in additional mortgage payment — enough to push a borderline buyer out of qualification.
Before making an offer on any Texas home, look up the exact combined tax rate for that specific address, not just the county average. Your real estate agent can pull this from the county appraisal district website, or you can search it yourself. Pay particular attention to MUD and PID taxes on newer developments, as these are the costs most likely to surprise buyers who compared only school and city rates.
Also consider the direction of tax rates. Counties with rapid residential growth tend to see rate increases as new school bonds pass and infrastructure demands grow. Counties that are already fully developed, like central Harris or older parts of Dallas County, tend to have more stable rates because the infrastructure is already built and paid for.
How the Homestead Exemption Changes the Math
The $140,000 school district homestead exemption significantly levels the playing field across counties. For lower-value homes, the exemption removes a larger percentage of the taxable value, producing a bigger percentage reduction in the tax bill. On a $250,000 home, the $140,000 exemption removes 56% of the value for school tax purposes. On a $700,000 home, it removes only 20%.
This means the homestead exemption benefits moderate-income homeowners more than high-income ones on a percentage basis. For a family buying a $300,000 home in Bexar County, the exemption can reduce the annual tax bill by $1,500 or more, making a significant difference in monthly affordability.
County and city optional homestead exemptions stack on top, and they vary. Harris County’s 20% optional exemption is among the most generous in the state. Always check which optional exemptions your county and city offer, because they can add $300 to $800 in additional savings beyond the state school exemption.
Frequently Asked Questions
Which Texas county has the highest property tax rate?
Among major metro counties, Fort Bend County consistently has the highest combined effective rates, often reaching 2.5% to 2.7% in newer developments with MUD taxes. Among all 254 counties, some smaller counties with concentrated taxing districts can exceed even Fort Bend’s rates.
Which major Texas county has the lowest property tax rate?
Among the major metros, Bexar County (San Antonio) and Williamson County (Round Rock) generally offer the lowest combined effective rates, typically 1.9% to 2.2%. Rural counties in East and West Texas can drop below 1.5%.
Why are MUD taxes so high in some Texas neighborhoods?
Municipal Utility Districts issue bonds to build water, sewer, drainage, and road infrastructure in previously undeveloped areas. The bond debt is repaid through property tax assessed on homeowners within the MUD boundary. Newer developments carry higher MUD rates because the bonds are still being repaid, while older MUDs that have retired their debt carry lower rates.
Do property tax rates change every year in Texas?
Yes. Each taxing entity sets its rate annually during budget hearings held between August and September. Rates can increase or decrease based on revenue needs, voter-approved bonds, and assessed value changes across the jurisdiction. Homeowners can attend public Truth-in-Taxation hearings to comment before rates are adopted.
Is it better to buy in an unincorporated area to avoid city tax?
Living outside city limits eliminates city property tax, which can save 0.30% to 0.70% per year. However, unincorporated areas may lack city services like trash collection, streetlights, code enforcement, and city police patrol. The tradeoff depends on your priorities and how much the city tax savings is worth relative to the services you would lose.