Owner-occupied effective rate
← All state property taxesTX · PROPERTY TAX & CLOSING FEES
Let’s make sense of Texas property tax.
We’ll start with the statewide rate, then show you what to check for the actual home, local tax districts, exemptions, and the bill after a sale.
Approximate annual tax
Simple monthly equivalent
State screening category
How can you get closer to the real bill?
01
Find the parcel record
Use the county or municipal assessor—not a listing-site estimate—to confirm assessed value, tax districts and the most recent bill.
02
Ask for a post-sale estimate
Some systems reset, reassess or remove the seller’s exemptions after a transfer. Price the buyer’s likely bill.
03
Check exemptions
Verify primary-residence, senior, disability, veteran, agricultural or other relief directly with the administering office.
04
Read closing documents
Review transfer taxes, deed and mortgage recording charges, prorated taxes, prepaids and the initial escrow deposit.
Ask for these fees in writing
TRANSFER
Transfer or documentary tax
Confirm whether state or local law—and then the contract—places the cost on buyer, seller or both.
RECORDING
Deed and mortgage recording
Confirm every instrument, per-page or flat charge with the recorder and title professional.
PREPAIDS
Tax proration and escrow
Separate the current-period adjustment from cash collected to start the future escrow reserve.
LOCAL
Special assessments
Check school, fire, sewer, improvement and other district charges that may not resemble the base tax rate.
A few questions you may have
What is the property tax rate in Texas?
The 2024 statewide effective rate benchmark is 1.40% of owner-occupied housing value. Your bill depends on the local assessment, taxing districts and exemptions.
How much is property tax on a $400,000 home in Texas?
A simple statewide illustration is about $5,600 per year, or $467 per month. Obtain the actual parcel bill and a post-sale estimate.
Are transfer taxes and recording fees the same?
No. Transfer taxes are generally tied to a home sale or mortgage amount; recording fees pay a government office to record documents.
Can the tax bill increase after purchase?
Yes. A sale, reassessment, expiring exemption, new levy or changed assessed value can alter the bill. Ask the assessor for a post-sale estimate.
WHERE TO CHECK
Start with the state. Finish with the address.
The statewide figure is a helpful comparison. For the real answer, check with the assessor, tax collector, recorder, title professional, and your Closing Disclosure.
