Tax Records & Assessments in Texas

Properties in Texas are subject to annual local property taxes. These taxes are pooled to fund public schools, roads, emergency services, hospital districts, and other county or municipal services. Property tax records and assessments are public information and maintained by each county's Appraisal District (CAD) and Tax Assessor-Collector.

What Are Property Tax Records?

Property tax records in Texas contain the official tax and ownership history for a parcel. Typical Texas tax records include the following:

• Property owners of record

• Parcel number (account number or property ID)

• Assessed value (appraised value and taxable value)

• Land and improvement values

• Exemptions applied

• Taxing units and tax rates

• Annual tax amounts

• Special district assessments

• Billing history and payment status

• Delinquent taxes, penalties, and interest

What Is a Property Tax Assessment?

A property tax assessment is the annual determination of a property's value by the local Appraisal District (CAD) as of January 1 of each year. This value determines how much tax the owner will owe after exemptions and tax rates are applied.

How Property Assessments Work in Texas

Pursuant to the Texas Tax Code, the Appraisal District is responsible for identifying and valuing all taxable properties within the county borders. Property assessment in the state works in line with these steps:

• Determine Market Value: The Chief Appraiser first determines the property's market value. Then, appraisers use mass appraisal techniques, classifying similar properties and employing three standard approaches:

• Sales Comparison (Market) Approach: Analyzing recent sales of similar homes in the neighborhood.

  • Cost Approach: Estimating the cost to replace the structure, minus depreciation.

  • Income Approach: Used primarily for commercial or rental properties.

Note that since properties are reappraised annually, the assessed value can change from year to year based on verified improvements, damage, or local sales of similar homes.

• Apply Appraisal Cap (Homestead Cap): For property receiving the mandatory Residence Homestead Exemption, the growth of the appraised value (assessed value) is capped by state law. The appraised value cannot increase by more than 10% over the previous year's appraised value, plus the value of any new improvements.

• Establish Taxable Value: The final step is to subtract any applicable exemptions from the appraised value. The result is the taxable value, the amount to which tax rates are applied.

How Property Taxes Are Calculated in Texas

More than 4,700 local taxing units exist in Texas, and several of these units may tax your property. Property taxes may also be paid to a city or special district, such as a junior college, hospital, or water district.

The basic formula for calculating annual property tax in Texas is:

Taxable value/100 x Total Tax Rate

Note that the tax rate, referred to as the millage rate in some states, is expressed in Texas as a dollar amount per $100 of taxable value. For instance, a tax rate of $1.50 per $100 means an owner pays $1.50 for every $100 of their taxable value. Via a process called Truth in Taxation, each local taxing unit sets its own rate based on its budget needs after holding public hearings.

Key components of the property tax formula in Texas are:

• Appraised Value: Market value determined by the appraisal district

• Exemptions: Common exemptions in Texas include Homestead, Over-65, Disabled, and Veteran

• Tax Rates: Set annually by local taxing units such as schools, counties, cities, and special districts

What Affects Your Property's Assessed Value?

The following factors affect your property's assessed value:

• Location: Zoning, proximity to high-performing school districts, employment centers, and major infrastructure

• Property Characteristics: Physical details like square footage, building type, quality of construction, age, and condition

• Improvements: Any additions, major renovations, or new amenities will increase the assessed value

• Comparable Sales: The recent sales prices of comparable properties in the defined market area, which is the cornerstone of the market approach

Why Your Property Tax Bill Might Increase (or Decrease)

Although your property's market value may remain the same, your tax bill can still change due to the following reasons:

• Change in Assessed Value: The 10% homestead cap may increase, but new homeowners do not benefit from the cap until the year after they receive the homestead exemption. Additionally, new improvements to a property can increase your tax bill.

• Change in Tax Rates: Local governments adopt new tax rates annually. Even if the value stays the same, a higher rate raises taxes.

• Change in Exemptions: Adding exemptions can lead to a reduction in taxes. Also, losing or failing to renew an exemption can increase a tax bill.

How to Review Your Tax Assessment for Accuracy

Usually, property owners in Texas receive a Notice of Appraised Value or Appraisal Notice in the spring. You can review the tax assessment for accuracy by taking the following steps:

• Verify Property Details: Check the appraisal district's record card for your property. Typically, you can do this via the website of the appraisal district. Verify that the square footage, year built, number of bathrooms, and lot size are accurate.

• Confirm Exemptions: Verify that all applicable exemptions, especially the residence homestead, have been correctly applied to reduce your taxable value.

• Research Comparables: Check recent comparable sales in your neighborhood to determine whether the appraised value reflects the true market value as of January 1.

How to Appeal a Property Tax Assessment in Texas

If you disagree with your appraised value or believe the value is unfair compared to similar properties, you can file a Notice of Protest. Note that the deadline to file this notice is typically May 15 or 30 days after the Appraisal Notice was mailed, whichever is later.

The appeal process has multiple levels:

• Informal Review: After filing a protest, most appraisal districts offer an informal meeting with an appraiser to review evidence and attempt to resolve the dispute before a formal hearing.

• Appraisal Review Board (ARB) Hearing: If the dispute is not resolved informally, the case moves to the ARB, which is an independent board of local citizens appointed to hear evidence from the property owner and the Appraisal District staff.

• Further Appeals: If you disagree with the ARB's decision, you may be eligible to appeal further to the district court or through binding arbitration, depending on the property type and value.

How to Find Property Tax Records & Assessments in Texas

All property tax records in Texas are readily accessible to the public, primarily through the website of the local Appraisal District (CAD) in the county where the property is located.

Note that the County Appraisal District provides:

• Appraised values

• Property characteristics

• Ownership history

• Exemptions

• Comparable sales (in some counties)

In addition, the County Tax Assessor-Collector provides:

• Tax bills

• Payment history

• Delinquency information

• Online payment options

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