Texas has no state income tax, so property taxes fund schools, roads, and local services. Rates average 1.8-2.2% of home value, among the highest nationally. However, with no state income tax, the total tax burden may be comparable to or lower than high-income-tax states.
Why Taxes Are High
Texas has no state income tax. Property taxes fund schools, roads, emergency services, and local government.
Where Money Goes
School districts receive the largest share (typically 50-60% of property tax bills).
How It Compares
While property tax rates are high, total tax burden may be lower than states with both income and property taxes.
Ways to Reduce
File homestead exemption, protest assessments annually, look for over-65 or disability exemptions.
Total Tax Picture
Consider the full tax burden: no state income tax offsets higher property taxes for most homeowners.