How Are Property Taxes Calculated in Texas?

Property taxes in the state of Texas are local taxes calculated using a percentage of the appraised value of the property, according to Glenn Hegar, Texas State Comptroller. There are no state property taxes in Texas, as of 2015.

Each county in Texas has an appraisal board of directors that hires a chief appraiser, according to the Hegar. The chief appraiser appraises the value of each property in his jurisdiction annually.

Each county also has taxing units. These units include schools, cities, counties and junior colleges, along with other special units. The taxing units set budgets to determine how much they must spend each year. The appraisal district does not levy taxes, but the taxing units often contract with the county tax assessor-collector to collect the county’s property taxes, according to the Texas State Comptroller.

The assessor bases Texas property assessments on the current market value of the property, with the exception of farm and timber lands, which he bases on productivity. This results in a lower assessment of these lands and reduces the owner’s tax bills, reports Hegar. All properties are subject to property taxes except those exempt by state or federal law.

If a property owner disagrees with the action of the assessor, he has the right to appeal the decision to the appraisal review board, indicate Hegar. If the appraisal review board does not satisfy the property owner, he may enter into binding arbitration.