How Texas Property Tax Rates Compare to Other States

When it comes to property taxes, Texas has a reputation—and it’s not just local hearsay. The Lone Star State ranks among the highest in the nation for property tax rates. But why is that, and how does Texas stack up in a national property tax comparison?

Whether you’re a long-time homeowner or a recent transplant from out of state, understanding how Texas property tax rates compare to those in other states can help you make smarter financial decisions—and potentially save money by protesting your tax assessment. Let’s break it down.

Texas Property Taxes: High Rates, But No Income Tax

One of the first things to know about Texas property tax rates is this: they’re high for a reason.

Texas doesn’t collect state income tax. So instead of tapping into residents’ paychecks, the state leans heavily on local property taxes to fund public services, especially schools, counties, cities, and special districts. As a result, local taxing entities have more responsibility (and authority) to raise funds through property taxes.

According to recent national data, Texas consistently ranks in the top 5 states for the highest average property tax rates. The effective property tax rate (which is the amount you actually pay, based on your home’s market value) often hovers around 1.6% to 1.8%, depending on your county.

Property Tax Comparison: Texas vs Other States

Here’s how Texas compares to other states’ property taxes:

Property Tax Comparison: Texas vs. Other States

So while Texas isn’t the highest, it’s definitely near the top. States like Illinois edge out Texas in terms of property tax percentage, but keep in mind that those states also collect income taxes. Many states with lower property taxes make up for it through other means—sales taxes, vehicle fees, and yes, income taxes.

What’s Driving Texas’s Property Tax Burden?

There are a few major factors:

1. School District Funding: Local school districts are a major driver of property taxes in Texas. Since the state contributes less per student compared to some other states, local taxes have to pick up the slack.
   
2. Rapid Property Value Growth: As property values rise in hot markets like Austin, Dallas, and Houston, so do tax bills—unless you protest them.
   
3. Limited Revenue Alternatives: Without income tax, there’s not much wiggle room for local governments to generate revenue elsewhere.
   

The Hidden Cost of High Property Taxes

A higher rate doesn’t always mean better services or schools. In some cases, it just reflects outdated valuations or inefficient tax structures. Many homeowners are paying more than they should due to errors or aggressive assessments.

This is where a professional property tax protest can make a real difference.

Texas Property Tax Protest: Your Defense Against Overpayment

Even though Texas has high property tax rates, you’re not stuck with the first number you see on your appraisal. Homeowners across the state are winning appeals every year—and saving real money in the process.

At Texas Tax Protest, we’ve helped homeowners save over $85 million in the last decade. With our Texas-based support team (no offshore call centers) and proprietary big-data software, we analyze your home’s valuation in context and build a personalized case for lowering your tax burden.

We know the system. We know what works. And we make it easy.

DIY vs. Professional Help: What’s the Right Call?

Sure, you can file a protest on your own. But most homeowners don’t have access to neighborhood comps, deep data analysis, or insights into how appraisal districts operate.

With a professional team on your side, you’re more likely to win and save more. Plus, you don’t pay anything unless we lower your taxes. It’s a win-win.

Know Where You Stand—and What You Can Do

Texas may not have state income tax, but the property tax rates more than make up for it. When you look at the property tax comparison between Texas and other states, it’s clear that homeowners here shoulder a large part of the financial load for local services.

But you don’t have to just accept your tax bill as-is. There’s a legal, strategic, and proven path to reducing your property taxes—and Texas Tax Protest is here to guide you through it.

Want to Know If You’re Overpaying?

Get in touch today to find out if your property tax bill is fair or inflated. The protest window doesn’t stay open forever, and the sooner you act, the better your chances. Contact Texas Tax Protest now and let us help you fight back.