Texas has no state income tax, which is a big draw for people moving here. Local governments rely heavily on property taxes instead, so your property tax bill is an important part of your monthly housing cost. Here is how it works in Dallas–Fort Worth and how to keep it as low as the law allows.
This guide is general information, not tax advice. Exemption rules and amounts can change, so confirm details with your county appraisal district or a tax professional.
Who Sets Your Property Taxes
Two different groups are involved:
- Your county appraisal district decides what your property is worth each year. In DFW that includes the Tarrant Appraisal District, Dallas Central Appraisal District, Collin Central Appraisal District and Denton Central Appraisal District.
- Local taxing units set tax rates. These usually include your school district, city, county, and sometimes a hospital district, community college district or special district.
Your bill is your home's taxable value (after exemptions) multiplied by the combined tax rate. Since rates vary by address, two similar homes a few miles apart can have very different tax bills. That's one reason I look up the tax rates for every home a buyer is seriously considering.
The Homestead Exemption
A homestead exemption removes part of your home's value from taxation, as long as the home is your primary residence. In November 2025, Texas voters approved constitutional amendments that increased these exemptions:
| Exemption | Amount (school district taxes) |
|---|---|
| General residence homestead | $140,000 (up from $100,000) |
| Additional for age 65+ or disabled | $60,000 (up from $10,000) |
| Combined for qualifying 65+ or disabled homeowners | $200,000 |
Cities, counties and other taxing units may offer their own optional homestead exemptions on top of these. Homeowners 65 and older or disabled also get a freeze on school district taxes once they qualify, so that portion of the bill generally won't go up as long as they stay in the home and don't make major improvements.
A Simple Example
Say your home is appraised at $400,000. For school district taxes, the $140,000 exemption reduces the taxable value to $260,000. The school district's tax rate then applies to $260,000 instead of $400,000. Your city and county taxes are calculated separately, using whatever exemptions those taxing units offer.
The 10% Homestead Cap
Once your homestead exemption is in place, the appraised value used for taxes on that home generally can't rise more than 10% per year, even if the market value goes up faster. New improvements, like an addition, can be added on top of the cap.
How to File
- Close on the home and move in as your primary residence.
- Complete the Application for Residence Homestead Exemption (Texas Comptroller Form 50-114). You'll need a Texas driver's license or ID showing the property address.
- Submit it to the appraisal district for the county where the home is located. Many DFW appraisal districts accept applications online.
Note that the seller's exemptions often stay on the tax bill for the year you buy. The proration at closing accounts for that, so your first full year of ownership may be the first year your own exemption shows up.
Protesting Your Appraisal
Each spring, appraisal districts mail notices of appraised value. If you think the value is too high, you can protest. The deadline is generally May 15 or 30 days after the notice is mailed, whichever is later. Common evidence includes recent sales of similar homes nearby and photos or estimates showing needed repairs. Many DFW homeowners protest every year.
What This Means When You Buy
When you compare homes, look at the estimated taxes with your own homestead exemption, not just the current owner's bill. A seller who has owned the home for years may have capped values or a senior freeze that won't carry over to you. I'll help you estimate this before you write an offer. Ready to start? Read the DFW home-buying guide.
Frequently Asked Questions
How much is the Texas homestead exemption?
After voters approved Proposition 13 in November 2025, the school district homestead exemption is $140,000 of your home's value. Homeowners who are 65 or older or disabled get an additional $60,000, for a total of $200,000 off school taxes. Cities and counties may offer their own exemptions too.
When should I file for a homestead exemption?
File after you own and live in the home as your primary residence. You can apply with your county appraisal district using Texas Comptroller Form 50-114. Many appraisal districts let you file online.
Can I protest my property appraisal in Texas?
Yes. If you disagree with your appraisal district's value, you can file a protest. The deadline is generally May 15 or 30 days after your appraisal notice is mailed, whichever is later.