Property Tax in Detail

The state-by-state property tax in detail presents key features of the property tax system in each of the 50 states and the District of Columbia. Most of the material in this section is also available in other tables on the site. However, there is additional information here on the number of taxing authorities in each state, assessment administration practices in each state, and on organizations or properties that are completely exempt from the property tax.

Is Personal Property Taxed

Yes, but see explanation

Are Motor Vehicles Taxed

No, but see footnote

Is Inventory Taxed

Yes, but see footnote

Are Machinery and Equipment Taxed

Yes, but see footnote

How are Mobile Homes Taxed

Mobile home characteristics determine tax status

Footnotes

Freeport goods and goods in transit other than minerals, petroleum, or natural gas are exempt. Raw cocoa and green coffee held in Harris County is exempt.
Machinery and equipment is exempt to the extent its value is included in the appraised value of real property. The following are exempt: (1) farm and timber implements; (2) marine cargo used exclusively in international commerce; (3) marine or mobile oild drilling units are exempt when not stored and not in use; and (4) pollution control equipment.
Motor vehicles are generally subject to an annual registration tax. Leased vehicles for personal use are exempt, but may be subject to municipal property taxes at local option. Vehicles used to produce income are taxable except that one vehicle used jointly for business and personal use is exempt.
Non-income producing property (excluding manufactured homes), incoming producing property and mineral interests up to $500 in value, household supplies, and farm products, are exempt. Most intangible personal property is exempt. To promote economic development in the State, goods, wares, merchandise, other tangible personal property, and ores, other than oil, natural gas, and other petroleum products, are exempt from ad valorem taxation.

Sources

Tex. Tax Code § 11.01 ~ 11.02; Tex. Tax § 11.14 ~ 11.251 (in effect for 2017)
Tex. Tax Code § 11.251; Tex. Tax Code § 11.33; Tex Tax Code § 23.12 (in effect for 2017)
Tex. Tax Code Ann. § 11.161; Tex. Tax Code Ann. § 11.25; Tex. Tax Code Ann. § 11.271; Tex. Tax Code Ann. § 23.24 (in effect for 2017)
Tex. Tax Code § 11.432; Tex. Occ. Code § 1201.003 (in effect for 2017)
Tex. Tax Code § 11.252; Tex. Tax Code § 11.254 (in effect for 2017)

Transfer Charge

None

Footnotes

A statewide ballot measure was passed in 2015 by a margin of 86% to 14%, amending the State of Texas Constitution to prohibit the legislature from imposing a transfer tax on a transaction that conveys fee simple title to real property.

Sources

Tex. Const. Art. VII, § 29

Property Tax Rate Cap

Limit Type

Rate Limit

Limit Description: 

The tax rate shall not exceed, for counties and municipalities, 8 mills; and, for school districts, 10.4 mills or 66.67% of the prior rate plus 0.4 mills, if lower than 15 mills.

Override Process: 

For counties, an additional levy of up to 1.5 mills may be authorized by a majority vote of the electorate. For school districts, additional levies may be authorized with voter approval.

Footnotes

This limit went into effect for counties and municipalities in 1876 and school districts in 1883.

Sources

Tex. Educ. Code § 45.003 (in effect for 2017)
Tex. Const. Art. VIII, § 9
Texas Comptroller of Public Accounts, Truth-In-Taxation [http://comptroller.texas.gov/taxinfo/proptax/tnt/ Accessed on 12/07/2015] View Archived Source

Mullins, Daniel and Kimberly Cox. 1995. Tax and Expenditures Limits on Local Governments, M-194, Washington, DC: Advisory Commission on Intergovernmental Relations. View Archived Source

Property Tax Levy Cap with Truth in Taxation Override

Limit Type

Levy Limit

Limit Description: 

Levy increases are limited to the lesser of the rate to generate the same revenue as the prior year, which is called the effective rate, or the rollback rate. The rollback rate is the rate sufficient for an 8% increase in the amount levied for maintenance and operations and to cover debt service. The rollback rate for school districts allows districts to add $0.04 to the lesser of the compressed operating rate or the effective maintenance and operations rate.

Override Process: 

School districts must hold an election to ratify a tax rate above the rollback rate. For other taxing units, to exceed either the effective rate or the rollback rate, the political subdivision must provide public notices and hold public hearings. The notice must include taxes imposed on the average residence homestead using the effective tax rate and the adopted rate.

Footnotes

This limit went into effect for counties, municipalities, and school districts in 1982. If a taxing unit other than a school district adopts a tax rate that exceeds the rollback rate, voters may petition for an election on the tax increase. A successful election limits the the current rate to the rollback rate. Effective September 1, 2017, the effective maintenance and operations tax rate of a school district is the tax rate that, applied to the current total value for the district, would impose taxes in an amount that, when added to state funds that would be distributed to the district under Chapter 42, Education Code, for the school year beginning in the current tax year using that tax rate, would provide the same amount of state funds distributed under Chapter 42, Education Code, and maintenance and operations taxes of the district per student in weighted average daily attendance for that school year that would have been available to the district in the preceding year if the funding elements for Chapters 41 and 42, Education Code, for the current year had been in effect for the preceding year.

Sources

Tex. Tax Code § 26.04; Tex. Tax Code § 26.07 ~ § 26.08 (in effect for 2017)
Tex. Const. Art. VIII, §21
Mullins, Daniel and Kimberly Cox. 1995. Tax and Expenditures Limits on Local Governments, M-194, Washington, DC: Advisory Commission on Intergovernmental Relations. View Archived Source


2011 Tex. Gen. Laws ch. 4 § 57.29; 2011 Tex. Gen. Laws ch. 4 § 57.32(b); 2011 Tex. Gen. Laws ch. 91 § 23.002

Truth In Taxation

Limit Type

Full Disclosure/Truth in Taxation Requirement

Limit Description: 

The taxing authority must provide the property owner with a notice of how much property taxes would increase or decrease if the effective rate were adopted. Additional public notification and hearings are required if the taxing authority proposes to raise the tax rate above the effective tax rate or the rate sufficient for an 8% increase in the amount levied for maintenance and operations and to cover debt service.

Override Process: 

Not applicable

Footnotes

Sources

Tex. Tax Code § 26.04, 26.05 and 26.07 (in effect for 2017)
Tex. Const. Art. VIII, § 21
Mullins, Daniel and Kimberly Cox. 1995. Tax and Expenditures Limits on Local Governments, M-194, Washington, DC: Advisory Commission on Intergovernmental Relations. View Archived Source

Truth in Taxation Override

Limit Type

Full Disclosure/Truth in Taxation Requirement

Limit Description: 

Levy increases are limited to the lesser of the rate to generate the same revenue as the prior year, which is called the effective rate, or the rollback rate. The rollback rate is the rate sufficient for an 8% increase in the amount levied for maintenance and operations and to cover debt service. The rollback rate for school districts allows districts to add $0.04 to the lesser of the compressed operating rate or the effective maintenance and operations rate.

Override Process: 

School districts must hold an election to ratify a tax rate above the rollback rate. For other taxing units, to exceed either the effective rate or the rollback rate, the political subdivision must provide public notices and hold public hearings. The notice must include taxes imposed on the average residence homestead using the effective tax rate and the adopted rate.

Footnotes

If a taxing unit other than a school district adopts a tax rate that exceeds the rollback rate, voters may petition for an election on the tax increase. A successful election limits the the current rate to the rollback rate.

Sources

Tex. Tax Code § 26.04; Tex. Tax Code § 26.07 ~ § 26.08 (in effect for 2017)
Tex. Const. Art. VIII, § 21
Mullins, Daniel and Kimberly Cox. 1995. Tax and Expenditures Limits on Local Governments, M-194, Washington, DC: Advisory Commission on Intergovernmental Relations. View Archived Source

Homestead Cap Value

Limit Type

Assessment Limit

Limit Description: 

The annual increases in the appraised value of a residence homestead for a tax year may not exceed the lesser of: (1) the market value of the property; or (2) the sum of: (a) 10% of the appraised value of the property for the preceding tax year, (b) the appraised value of the property for the last year, and (c) the market value of all new improvements to the property.

Override Process: 

None

Footnotes

Value recovered upon sale.

Sources

Tex. Tax Code § 23.23 (in effect for 2017)
Tex. Const. Art. VIII §1
Mullins, Daniel and Kimberly Cox. 1995. Tax and Expenditures Limits on Local Governments, M-194, Washington, DC: Advisory Commission on Intergovernmental Relations. View Archived Source

Number and Type of Assessing Districts

County appraisal districts conduct assessments. Two or more county appraisal districts may consolidate assessment and collection functions into one district. A home-rule city may conduct assessments.

Revaluation Cycle

Every 3 years

Is Re-Inspection Required

No, physical re-inspection is not required by the state

Assessment Manual

Texas Comptroller of Public Accounts, Property Tax Assistance Division, Field Appraisers' Procedures Manual (Sep 2018) [https://comptroller.texas.gov/taxes/property-tax/docs/96-1710.pdf Acccessed 10/03/18] http://datatoolkits.lincolninst.edu/subcenters/significant-features-property-tax/upload/sources/Texas/2017/TX_2017_Field%20Appraisers%20Procedures%20Manual_Comptroller%20of%20Public%20Accounts_Sep%202018.pdf

Footnotes

Appraisal districts (253) are contiguous with counties (254) except that two counties have formed a single appraisal district. All other counties (252) are single county districts. A new source statute (Tex. Tax Code § 25.18) was added under the Source State Statute that deals with the periodic reappraisal procedure.
All real and personal property located in the appraisal district must be reappraised at least once every three years.
State statutes and administrative codes are silent on re-inspection requirements.

Sources

Tex. Tax Code § 5.04; Tex. Tax Code § 6.01 ~ § 6.03; Tex Tax Code § 6.05 ~ §6.0501; Tex Tax Code § 6.22 ~ § 6.26; Tex. Tax Code § 25.18 (in effect for 2017)
Texas Comptroller of Public Accounts, Handbook of Texas Property Tax Rules (Aug 2018)
[https://comptroller.texas.gov/taxes/property-tax/docs/96-1717.pdf Accessed 10/03/18]
View Archived Source
Texas State Comptroller's Office, Appraisal District Information [https://comptroller.texas.gov/taxes/property-tax/resources/index.php Accessed 07/13/17]

Does State Classify

No

Different Ratios

No

Different Rates

No

Local Option

No

Footnotes

Statute prohibits any assessment other than 100% of appraised value. Tangible personal property with taxable value greater than $500 held for or used in the production of income is taxable, excluding farm products.

Sources

Tex. Tax Code §11.145;
Tex. Tax Code §26.02
(in effect for 2017)
Name of Property TypeAssessed Value of Property Type Percentage of Property Tax Base
Residential
1469890318486
56.58%
Vacant Lots
48102062179
1.85%
Rural Acreage
99731092983
3.84%
Commercial
415080341835
15.98%
Industrial
127357408658
4.90%
Utilities
135435274126
5.21%
Personal Property
302489078740
11.64%

Total Value of Assessed Property

$ 2,598,085,577,007

Footnotes

For taxes payable in fiscal year 2016-2017. Valuation data reflects gross property values. Statewide total deductions are $369,132,193,469, yielding a net taxable value of $2,228,953,383,538. "Residential" includes single and multi-family residences. "Vacant Lots" includes vacant lots and colonia lots. "Rural Acreage" includes real property qualified and non-qualified acres and real property farm and ranch. "Utilities" includes utilities and oil, gas, and minerals. "Personal Property" includes commercial, industrial, intangible personal property, special and residential inventory, and mobile homes and other personal. Assessed value equals full market value minus any exemptions.

Sources

TX, Texas Comptroller of Public Accounts, 2016 Property Value Study (2017).
[https://comptroller.texas.gov/taxes/property-tax/pvs/2016f/index.php Accessed on 12/14/2018]
View Archived Source

Valuation of Timber Land

Eligible Land Uses

Forest Land/Timber Production

Eligibility Criteria

Income Production

Prior Year's Land Use

Method of Preferential Treatment

Current Use Valuation

Is There a Penalty for Change of Use?

Yes

Footnotes

The taxable value of qualified timber land appraised may not be less than the appraised value of that land for the taxing unit in the 1978 tax year, except that the taxable value used for any tax year may not exceed the market value of the land as determined by other generally accepted appraisal methods. If the appraised value of timber land is less than a taxing unit's appraised value of that land in 1978, the assessor for the unit shall substitute the 1978 appraised value for that land on the unit's appraisal roll.

Sources

Tex. Tax Code § 23.71 ~ § 23.79 (in effect for 2017)

Local Option Exemption for Historic Sites

Eligible Land Uses

Historic

Eligibility Criteria

Prerequisite Designation or Certification

Method of Preferential Treatment

Full or Partial Exemption

Is There a Penalty for Change of Use?

No

Footnotes

Sources

Tx. Tax Code §11.24 (in effect for 2017)

Agricultural Use Value

Eligible Land Uses

Agricultural/Farmland

Eligibility Criteria

Income Production

Prior Year's Land Use

Other Eligibility Requirements

Method of Preferential Treatment

Current Use Valuation

Is There a Penalty for Change of Use?

Yes

Footnotes

Sources

Tex. Tax Code § 23.41 ~ 46 (in effect for 2017)
Tex. Const. Art. VIII §1-d

Appraisal of Restricted Use Timber Land

Eligible Land Uses

Forest Land/Timber Production

Other Land Uses

Eligibility Criteria

Plot/Land Size

Management Plan

Other Eligibility Requirements

Method of Preferential Treatment

Current Use Valuation

Full or Partial Exemption

Is There a Penalty for Change of Use?

Yes

Footnotes

Sources

Tex. Tax Code § 23.9801 ~ 9807 (in effect for 2017)

Use Valuation for Recreational, Park, or Scenic Land

Eligible Land Uses

Conservation/Open Space

Historic

Parks/Recreation

Other Land Uses

Eligibility Criteria

Plot/Land Size

Income Production

Prior Year's Land Use

Multi-Year Commitment

Method of Preferential Treatment

Current Use Valuation

Is There a Penalty for Change of Use?

Yes

Footnotes

Sources

Tex. Tax Code § 23.81 ~ § 23.87 (in effect for 2017)

Wildlife Management Use

Eligible Land Uses

Other Land Uses

Eligibility Criteria

Plot/Land Size

Management Plan

Prior Year's Land Use

Method of Preferential Treatment

Current Use Valuation

Is There a Penalty for Change of Use?

Yes

Footnotes

Sources

Tex. Tax Code §23.51~23.57 (in effect for 2017)

Open Space Agricultural Use

Eligible Land Uses

Agricultural/Farmland

Eligibility Criteria

Plot/Land Size

Management Plan

Prior Year's Land Use

Method of Preferential Treatment

Current Use Valuation

Is There a Penalty for Change of Use?

Yes

Footnotes

The land may be owned by a corporation, partnership or individual.

Sources

Tex. Tax Code §23.51~23.57 (in effect for 2017)

Pollution Control Property Tax Exemption

Type of Improvement

Reduce or abate pollution

Description of Eligibility Criteria

Property must be all or part of real and personal property that is used wholly or partly as a facility, device, or method for the control of air, water, or land pollution. The facility, device, or method for the control of air, water, or land pollution must use land that is acquired after 1 January 1994 or; must be any structure, building, installation, excavation, machinery, equipment, or device, and any attachment or addition to or reconstruction, replacement, or improvement of that property – that is used, constructed, acquired, or installed wholly or partly to meet or exceed rules or regulations adopted by any federal, state, or local environmental protection agency for the prevention, monitoring, control, or reduction of air, water, or land pollution. By legislative mandate, a nonexclusive list of 18 facilities, devices, and methods for the control of air, water, or land pollution are eligible. The owner must provide required information in a permit application or permit exemption request to the Executive Director of the Texas Commission on Environmental Quality. The Texas Commission on Environmental Quality approves the exemption request. The exemption shall not apply to any pollution control property that was subject to a tax abatement agreement executed before 1 January 1994.

Incentive

All pollution control real and personal property acquired after 1 January 1994 that is used wholly or partly as a facility, device, or method, including improvements, for the control of air, water, or land pollution is eligible for an exemption from property taxes.

Sources

Tex. Tax Code § 11.31 (in effect for 2017)
Tex. Const. Art. VIII, § 1-1

Footnotes

Property used for residential purposes, or for certain recreational, park, or scenic uses, is ineligible.

Local Option Property Tax Abatement for Brownfield Cleanup and Redevelopment

Type of Improvement

Reduce or abate pollution

Description of Eligibility Criteria

Brownfield means real property, the expansion, redevelopment, or reuse of which may be complicated by the presence or potential presence of environmental contamination. Eligible brownfield property must be located in a reinvestment zone and the subject of a voluntary cleanup agreement. The owner who files a copy of the certificate of completion in the first year covered by the agreement is not required to re-file for subsequent years. A certificate of completion for the property is issued by the Executive Director of Texas Natural Resource Conservation Commission. School districts may not enter into a tax abatement agreement under this section.

Incentive

The agreement between the property owner and the local governing body may grant eligible brownfield property an exemption from property taxes for up to 4 years, pursuant to the following schedule: up to 100% in the first year; up to 75% in the second year; up to 50% in the third year; and up to 25% in the fourth year.

Sources

Tex. Tax Code § 312.211 (in effect for 2017)

Footnotes

Enterprise Zone Property Tax Abatement

Geographic Requirements

Programs limited to designated geographic areas meeting specific criteria

Incentive Description: 

A tax abatement is an agreement between a taxpayer and a taxing unit that exempts all or part of the increase in the value of the real property and/or tangible personal property from taxation for a period not to exceed 10 years. School districts may not enter into abatement agreements. Each taxing unit that wants to consider tax abatement proposals must adopt guidelines and criteria for the creation of a reinvestment zone and must hold a public hearing. After these steps are complete, the taxing unit may, by official action, designate a zone.

Eligibility Criteria

Incentives Tied to Increasing Jobs or Wages

Incentives Tied to Investment

Geographic Area Criteria

Designated Period

Population Composition

Income and Employment Conditions

Neighborhood Social and Health Conditions

Other Conditions

Population Levels or Trends

Sources

Tex. Govt. Code § 2303.001 ~ 2303.517; Tex. Tax Code § 311-311.0125; Tex. Tax Code § 311.017; Tex. Tax Code § 312.0025; Tex. Tax Code § 312.201 ~ § 312.208; Tex. Tax Code § 312.401 - § 312.403 (in effect for 2017)
Business in Texas
https://businessintexas.com/services/tax-incentives

Footnotes

Reinvestment zones are eligible too. They consist of an area experiencing impaired growth because of: (1) a substantial number of substandard; (2) the predominance of defective sidewalks or streets; (3) faulty size, adequacy, accessibility, or usefulness of lots; (4) unsanitary or unsafe conditions; (5) the deterioration of site or other improvements; (6) tax or special assessment delinquency exceeding the fair value of the land; (7) defective or unusual conditions of title; or (8) conditions that endanger life or property by fire or other cause. In addition, eligible property can: (1) be in a federally assisted new community located in a home-rule municipality or in an area immediately adjacent to a federally assisted new community located in a home-rule municipality; (2) be located entirely in an area that meets the requirements for federal assistance under Section 119 of the Housing and Community Development Act of 1974; (3) encompass signs by the governing body of the municipality for reconstruction for the purpose of enhancing the physical environment; or (4) contribute to the retention or expansion of primary employment or to attract major investment. A school in a TIF district is entitled to state aid in an amount equal to the amount the district is required to pay into the tax increment fund for a reinvestment zone.

Defense Economic Readjustment Zones

Geographic Requirements

Programs limited to designated geographic areas meeting specific criteria

Incentive Description: 

Designation of an area as a defense economic readjustment zone is also designation of the area as a reinvestment zone for tax increment financing, and tax abatement. A local property tax exemption may be granted for real property and tangible personal property located in the readjustment zone that was acquired from the federal government by lease or deed. In addition, property in a readjustment zone is eligible for a tax refund based on the capital investment in the project; exemption from state regulation and suspension from local regulation; preference for loans from the state; refunds and credits on state excise, use, sales, and franchise taxes; refunds on local sales and use taxes; and the reduction or elimination of local fees.

Eligibility Criteria

Incentives Tied to Increasing Jobs or Wages

Incentives Tied to Investment

Geographic Area Criteria

Area Size

Area Location

Designated Period

Income and Employment Conditions

Sources

Tex. Govt. Code Ch. 2310 (in effect for 2017)
TX, Economic Development Bank,
Defense Economic Readjustment Zone (2016)
[https://businessintexas.com/sites/default/files/derz_annual_report_2016.pdf
accessed 6/29/18]
View Archived Source

Footnotes

Limitation on Appraised Value of Property in Reinvestment Zones

Geographic Requirements

Programs limited to designated geographic areas meeting specific criteria

Incentive Description: 

An appraised value limitation is an agreement in which a taxpayer agrees to build or install property and create jobs in exchange for an 8 year limitation on the taxable property value for school district maintenance and operations tax (M&O) purposes and a tax credit. The minimum limitation varies by school district. The application for a limitation on the appraised value for M&O purposes is submitted directly to the school district and requires an application fee, which is established by each school district. The credit is for the M&O taxes paid in excess of the limitation amount in the first 2 years. The school district’s tax collector must credit the overage in equal parts over the last 7 years of the agreement, but the credit may not exceed 50% of the total taxes paid on the qualified property for a given year. Any eligible amount not credited in the 7-year period must be credited over the next 3 years, but not to exceed the total taxes paid on the qualified property in each year.

Eligibility Criteria

Incentives Restricted to Certain Industries or Uses

Incentives Tied to Increasing Jobs or Wages

Incentives Tied to Investment

Geographic Area Criteria

Designated Period

Condition of the Built Environment

Neighborhood Social and Health Conditions

Sources

Tex. Tax Code § 311.005; Tex. Tax Code § 313.021 (in effect for 2017)

Footnotes

Property subject to a limitation on appraised value in a tax year under this program is not eligible for tax abatement by a school district under Texas Tax Code § 312 in that tax year.

Tax Increment Reinvestment Zones (TIF)

Geographic Requirements

Programs limited to designated geographic areas meeting specific criteria

Incentive Description: 

Eligible costs include land acquisition, site preparation, construction of infrastructure, payment of principal and interest on tax increment bonds issued by the municipality, and other capital costs within the district. Each taxing jurisdiction participates and may agree to contribute any amount of the increment. Eligible costs also include the construction of buildings, administrative costs, and operating costs. A taxing jurisdiction other than a school district may offer tax abatements. The abatement must be approved by the board of directors of the reinvestment zone and the governing body of the taxing jurisdiction. The taxes abated are not included when calculating the increment.

Eligibility Criteria

No Criteria

Geographic Area Criteria

Condition of the Built Environment

Income and Employment Conditions

Neighborhood Social and Health Conditions

Sources

Tex. Tax Code § 311.001 ~ 311.021 (in effect for 2017)
Texas Comptroller of Public Accounts
TIF information (2018)
[https://comptroller.texas.gov/economy/docs/96-1806.pdf
accessed 6/29/18]
View Archived Source

Footnotes

Incremental revenue in a reinvestment zone may include sales tax revenues.

Residence Homestead Exemption with Local Options

Benefit Type

Exemption

Eligibility Criteria

Age

Disability

Homeowner

Surviving Spouse

Description of Eligibility Criteria

It varies according to the benefit. For the $3,000 general exemption and the $15,000 school district exemption every homeowner is eligible. Individuals who are over 65 or disabled are eligible for an additional $10,000 school district exemption. For surviving spouses of applicants 65 or older to qualify, the surviving spouse must be 55 or older to qualify.

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit

A homestead exemption of $3,000 of assessed value for general government purposes and an additional $25,000 for school district taxation is available to all homeowners. Those 65 or older, or disabled, are entitled to an additional exemption $10,000 for school taxation. An individual can benefit from more than one of these three options in a tax year. At local option, the exemption for general government on homesteads for seniors and disabled persons may be increased above $3,000. At local option, a governing body may adopt for all homesteads, a percentage exemption, up to 20% of the appraised value. If the percentage produces an exemption of less than $5,000 for a particular property, a minimum exemption of $5,000 is applied.

Footnotes

The exemption applies to homesteads of cover members of the military on active duty orders within the United States An applicant can receive either an elderly or disabled exemption but cannot receive both.

Sources

Tex. Tax Code Ann. § 11.13 (in effect for 2017)
Tex. Constitution Art. VIII § 1-a; Tex. Constitution Art. VIII § 1-b.
Application for Residence Homestead Exemption, Texas Comptroller [https://comptroller.texas.gov/forms/50-114.pdf accessed 06/27/2018 View Archived Source

Residence Homestead Exemption FAQ [https://comptroller.texas.gov/taxes/property-tax/exemptions/residence-faq.php accessed 06/27/2018] View Archived Source

Senior School Tax Freeze with Local Option for Other Local Taxes

Benefit Type

Other

Eligibility Criteria

Age

Disability

Homeowner

Principal Residence

Surviving Spouse

Description of Eligibility Criteria

Homeowners qualify if they are age 65 or older, or if disabled. Surviving spouses of eligible homeowners must be 55 years old or older when the individual dies and they must remain in the same home.

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit

The tax ceiling provides that school taxes on residential homesteads will not increase above the amount of the taxes imposed when the homeowner first qualified. At local option, a county, municipality, or junior college district may extend the tax freeze as well.

Footnotes

Homeowners are allowed to transfer the school district tax ceiling to a different home. The ceiling on the new home is calculated as the same percentage of taxes paid as the original home's tax ceiling. The ceiling may be adjusted upward for improvements that have increased the value of the property.

Sources

Tex. Tax Code §11.26, Tex. Tax Code §11.261 (in effect for 2017)
Tex. Cons. §1-b(h)

Disabled Veterans Exemption

Benefit Type

Exemption

Eligibility Criteria

Active Military

Age

Disability

Homeowner

Veteran

Surviving Spouse

Description of Eligibility Criteria

An applicant must be a disabled veteran that is over the age of 65 with at least a 10% disability rating, that is blind in one or both eyes, or that have lost the use of one or more limbs are eligible for the maximum exemption. Unremarried, surviving spouses of a veteran who is qualified for an exemption, or of a disabled veteran who would have qualified for an exemption if the law had been in effect on the date the disabled veteran died, are also eligible as are the veteran's surviving children under the age of 18.

Variations in Receipt of Benefit

Other Variation in Receipt of Benefits

Benefit

Based on a veteran's disability rating, the individual is eligible for an exemption ranging from $5,000 (a rating from 10-29%) to $12,000 (a rating 70% and greater). There are four exemption brackets. If a veteran dies in active duty then the individual's spouse is eligible for a $5,000 exemption. In addition, any unmarried children under 18 are eligible for a $5,000 exemption for all children combined. If more than one child is eligible then the exemption for each child equals $5,000 divided by the number of eligible children. A disabled veteran with a disability rating of less than 100 percent is entitled to an exemption of a percentage of the appraised value of their homestead equal to their disability rating if the homestead was donated to them by a charitable organization at no cost to the applicant. A disabled veteran who receives from the United States Department of Veterans Affairs 100% disability compensation due to a service-connected disability and a rating of 100% disabled or of individual unemployability is entitled to an exemption from taxation of the total appraised value of the veteran's residence homestead. The benefit can only be applied to one property.

Footnotes

Effective 7 November 2017, partially disabled veterans can receive an exemption of assessed value from property donated by a charity organization. Enacted by a ballot measure. Applicants must be residents of the state

Sources

Tex. Tax Code Ann. § 11.22; Tex. Tax Code Ann. § 11.131; Tex. Tax Code Ann. § 11.132 (in effect for 2017)
Tex. Constitution Article VIII §2
Texas Property Tax Exemption (December 2016) Texas Comptroller [ https://comptroller.texas.gov/taxes/property-tax/exemptions/index.php Accessed on 03/27/2018]

View Archived Source

Disabled Veterans Exemption Application [https://comptroller.texas.gov/forms/50-135.pdf accessed 06/27/2018] View Archived Source

100 Percent Disabled Veterans Exemption

Benefit Type

Exemption

Eligibility Criteria

Disability

Veteran

Surviving Spouse

Description of Eligibility Criteria

A veteran who received 100% compensation from the U.S. Department of Veterans Affairs due to a 100% disability rating is eligible for the exemption. An unremarried surviving spouse, or the surviving spouse of a disabled veteran who would have qualified had the program been in effect at the time of their death, is entitled to the exemption as long as the property remains the homestead. If the surviving spouse qualifies a different property as a homestead, the spouse is entitled to an exemption of equal dollar amount to the former homestead's exemption.

Variations in Receipt of Benefit

No Variation in Receipt of Benefits

Benefit

The total appraised value of the eligible property is fully exempt.

Footnotes

Effective 1 January 2016, benefits expanded to the surviving spouses of veterans who would be eligible for the program if it had been effect when they died.

Sources

Tex. Tax Code §11.131 (in effect for 2017)
Texas Property Tax Exemption (December 2016) Texas Comptroller [ https://comptroller.texas.gov/taxes/property-tax/exemptions/index.php Accessed on 10/19/2017] View Archived Source
Texas L. 2015, c. 702 §1

Government Property

Yes

Charitable / Benevolent Organizations

Yes

Religious Organizations

Yes

Scientific Organizations

Yes

Literary Organizations

Yes

Educational Institutions

Yes

Membership Organizations

Yes

Art and Cultural Organizations

Yes

Nonresidential Historic Properties

Yes

Housing for Vulnerable Populations

Yes

Health and Care Facilities

Yes

Emergency Protection Facilities

Yes

Parks, Open Space, and Cemeteries

Yes

Infrastructure, Transportation, and Communication Facilities

Yes

Specifics about Infrastructure, Transportation and Communication

Rail facilities or public highways leased by the Texas Department of Transportation to private entities operated to provide transport or utility services are exempt. Property of nonprofit water supply or wastewater service companies that intend to transfer assets to similar organizations if company dissolution occurs are exempt, as are nonprofits organized under the Texas Non-Profit Corporation Act that provide chilled water and steam to certain eligible institutions, where eligibility is largely determined by whether the organization engages in health-related pursuits. Television stations that receive grants from the Corporation for Public Broadcasting, and that produce or broadcast educational, cultural, or other publically beneficial programming are also exempt.

Private Economic Activity

Yes

Specifics about Private Economic Activity

Selling or distributing water for public use is an exempt activity

Other Exemptions

Yes

Specific Other Exemptions

Exemptions are available for: Oil, gas, and other mineral interests owned by an institution of higher education, and property bequeathed to such entities (unless contested in probate); promoting or operating a zoo; humane societies; property of organizations devoted to providing student loans or scholarships; certified halfway houses; organizations that perform biomedical or scientific research or education for public benefit; youth development associations; nonprofit private enterprise demonstration associations that target children and youth and operate under a state or national organization; county fairs; property of nonprofits used in scientific research and educational activities for the benefit of one or more colleges and universities; land dedicated by easement as a disposal site for depositing and discharging materials dredged from the main channel of the Gulf Intracoastal Waterway under government direction.

Footnotes

At local option, exemptions are available for: •the assessed value of property designated as historically or archeologically significant •the assessed value of property on which approved water conservation initiatives, desalination projects, or brush control initiatives have been implemented. Religious residences are limited to one acre per residence, and tracts of land contiguous to places of regular worship are only exempt for six years. Non-contiguous tracts are only exempt for three years. Organizations conserving or preserving wildlife are limited to 1,000 acres per county. In order for hospitals to be exempt, charity care and community benefits must account for 5% of net patient revenue, and charity care and government-sponsored indigent health care must account for 4%.

Sources

Tex. Tax Code § 11.11 ~ § 11.12; Tex. Tax Code § 11.17 ~ § 11.1801; Tex. Tax Code § 11.183 ~ § 11.184; Tex. Tax Code § 11.19 ~ § 11.20; Tex. Tax Code § 11.21; Tex. Tax Code § 11.23 & 11.24; Tex. Tax Code § 11.29 ~ 11.30; Tex. Tax Code § 11.311; Tex. Tax Code § 11.32 (in effect for 2017)
Texas Comptroller, Texas Property Tax Exemptions Complete and Partial Property Tax Code Exemptions Available to Property Owners Who Qualify [https://www.comptroller.texas.gov/taxes/property-tax/docs/96-1740.pdf Accessed 12/20/2018]
View Archived Source
Tex. Const. Art. VIII § 2
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