Property Taxes in Houston Explained: Rates, Exemptions, and Protests

Houston property taxes fund the schools, roads, and emergency services that run the city. Every residential and commercial property in Harris County is appraised once a year by the Harris Central Appraisal District (HCAD), and your bill comes from several government bodies at once: Harris County, the City of Houston, your school district, and often a municipal utility district (MUD). For 2025, a home in Houston’s city limits with Houston ISD faced a combined base rate of roughly 1.78% of taxable value — lower than the national headlines suggest, but still one of the reasons Texas consistently ranks among states with the highest property tax burden despite having no state income tax.

Here’s the number that surprises most newcomers: the school district homestead exemption is now at least $140,000 — more than triple the $40,000 it was before 2023. On a home taxed at Houston ISD’s rate of $0.8783 per $100, that single exemption saves a homeowner more than $1,229 a year.

Who appraises your home: Harris Central Appraisal District

Harris Central Appraisal District (HCAD) appraises every property in Harris County, setting the market-value estimate that all your taxing units use to calculate your bill. HCAD appraises as of January 1 each year and typically mails a Notice of Appraised Value in April or May.

HCAD does not set tax rates and does not collect taxes. Its job is to determine what your property is worth.

The property database at hcad.org lets you look up any property’s appraised value, exemption status, and the taxes each taxing unit will impose. If you recently bought a home, search your record to confirm a homestead exemption is applied — sellers don’t transfer it automatically.

Who collects the money: Harris County Tax Office

The Harris County Tax Assessor-Collector (currently Annette Ramirez) consolidates billing for most taxing units through a single statement mailed each November. The payment deadline is January 31 — missing it triggers penalty and interest that compounds monthly. Pay online at the Harris County Tax Office, by mail, or in person at any Harris County Tax Office branch.

Texas courts have held that not receiving your bill is not a valid excuse for missing the January 31 deadline. Confirming your mailing address in the HCAD database once a year takes two minutes and prevents a costly surprise.

How your bill is calculated

Each taxing unit applies the same formula to every property it taxes:

(Appraised Value − Exemptions) × Tax Rate = Your Portion

For 2025, the adopted rates for major Harris County entities were:

• Harris County: $0.38096 per $100 of taxable value
• City of Houston: $0.51919 per $100 of taxable value
• Houston ISD: $0.87830 per $100 of taxable value
• Cy-Fair ISD: $1.06690 per $100 of taxable value

School districts typically make up 50–60% of the total bill. The district you are zoned to depends on where the property sits, not which school your children attend.

Exemptions that cut your bill

General homestead exemption

To qualify, you must own the home and use it as your primary residence as of January 1 of the tax year. Your Texas driver’s license or state ID must show the property address. File once at hcad.org between January 1 and April 30. Late filing is accepted up to two years after taxes become delinquent.

The homestead exemption removes at least $140,000 from your school district taxable value, per HCAD. Harris County adds a 20% optional exemption on top. The City of Houston and other taxing units set their own optional exemptions.

Over-65 and disability exemptions

Homeowners 65 or older or those with a qualifying disability receive an additional $60,000 off school district taxable value, according to HCAD’s official exemption guidance. These exemptions also freeze your school tax bill: once you qualify, school taxes cannot increase regardless of how much your home appreciates or rates change — unless you add improvements.

100% disabled veteran

If you received a 100% disability rating from the U.S. Department of Veterans Affairs for a service-connected disability, 100% of your residence homestead’s appraised value is exempted — a zero property tax bill on that home. Surviving spouses of 100% disabled veterans may retain the exemption under specific eligibility rules listed at hcad.org.

The 10% cap: your biggest protection in a rising market

Once your homestead exemption is in place, your appraised value for tax purposes can increase by no more than 10% per year, plus the value of any new construction or improvements you added. The cap starts in your second year of homestead exemption, not the first.

In a rising market, the gap between market value and capped appraised value can be enormous. If HCAD values your home at $600,000 in a hot year but your capped appraised value was $350,000 the year before, your taxable appraisal rises only to $385,000 — a $215,000 difference. That gap collapses if you sell, transfer title, or remove the homestead exemption.

This is why long-term homeowners in The Heights or Montrose often pay taxes on values far below what the same home would sell for on the open market.

How to protest your appraisal

You can protest your appraisal every year, for free, without an attorney. The deadline is May 15, or 30 days from the date your Notice of Appraised Value was mailed, whichever is later.

File online at hcad.org using the iFile number printed on your notice, by mail, or in person at 13013 Northwest Freeway, Houston (8 a.m. to 5 p.m.). After you file, HCAD typically schedules an informal meeting with an appraiser first — many protests resolve here with a reduction. If you disagree with the informal outcome, request a formal hearing before the Appraisal Review Board (ARB), an independent panel. HCAD says most hearings take 15 minutes or less.

Bring comparable sales from the previous six months, photos of any condition issues, and documentation of deferred repairs. The burden is on HCAD to defend its number.

Key dates every year

• January 1: Tax year begins; HCAD appraises your property as of this date
• January 1 – April 30: Window to file homestead and other exemptions
• January 31: Deadline to pay prior year’s taxes without penalty
• April – May: HCAD mails Notices of Appraised Value
• May 15 (or 30 days from notice): Deadline to file a protest
• November: Tax bills mailed by the Harris County Tax Office

Why your suburb neighbor’s bill looks different

Houston’s metro spans Harris County and five surrounding counties, each with its own appraisal district and tax collector. Even within Harris County, the school district determines a large share of your total rate.

Cy-Fair ISD’s 2025 rate was $1.0669 per $100, compared to Houston ISD’s $0.8783. On a $400,000 home after exemptions, that’s roughly $756 more per year in Cy-Fair just from the school district difference. Suburban municipal utility districts (MUDs) add another layer: a new-construction home in a MUD in Katy or Pearland typically carries an additional $0.50 to $0.80 per $100 in MUD taxes on top of the county and school rate, though MUD rates usually fall as infrastructure bonds are paid off.

See every taxing entity and its rate on your annual tax statement, or search by address in the Harris County Tax Office rate database. Our best suburbs guide and cost of living breakdown compare these differences across the metro.

Save this: first-year homeowner property tax checklist

• Move in before January 1 of the tax year, then file your homestead exemption at hcad.org between January 1 and April 30. Your Texas driver’s license or state ID must show the property address.
• Open your Notice of Appraised Value in April or May. Compare HCAD’s number to what you paid and what comparable homes nearby sold for recently.
• If HCAD’s value looks too high, file a protest by May 15. Online at hcad.org using your iFile number is fastest.
• Set a calendar reminder for January 31 — that is the payment deadline for the prior year’s taxes, with no grace period.
• If you are 65 or older, have a qualifying disability, or are a qualifying veteran, file the additional exemption at the same time as your general homestead application.
• In your second year, confirm in the HCAD database that your record shows the 10% homestead cap applied.

For a full picture of what it costs to own a home in Houston, see our moving to Houston guide, the Houston neighborhoods guide, and the apartments guide for a rent-versus-buy comparison by budget. The utilities guide covers what else you’ll pay each month.

Last verified: October 2026.

Frequently asked questions

When are Houston property taxes due?

Property taxes in Harris County are due January 31 each year for the prior tax year. Texas holds property owners responsible for paying on time even if no bill is received, so confirm your mailing address in the HCAD database and set an annual calendar reminder.

How do I file for a homestead exemption in Houston?

File at hcad.org between January 1 and April 30. You must own the home, use it as your primary residence as of January 1, and have a Texas driver’s license or state ID showing the property address. File once — you do not reapply each year. Late filing is accepted up to two years after taxes become delinquent.

What is the 10% homestead cap in Texas?

Once your homestead exemption is active, your appraised value for tax purposes can increase by no more than 10% per year plus the value of any new improvements, starting in your second year of homestead exemption. In a fast-rising market this can create a significant gap between your taxable appraised value and your home’s actual market value.

How do I protest my Harris County property tax appraisal?

File a protest at hcad.org using the iFile number on your Notice of Appraised Value by May 15, or within 30 days of your notice date, whichever is later. The process is free, no attorney required, and starts with an informal meeting with a Harris Central Appraisal District appraiser before any formal ARB hearing.

Why do Houston suburbs sometimes have higher property tax bills than the city?

Property tax rates vary by school district, which is usually the largest component of the total bill. Cy-Fair ISD’s 2025 rate was $1.0669 per $100 versus Houston ISD’s $0.8783, a difference of roughly $756 per year on a $400,000 home after exemptions. Many suburban areas also add municipal utility district (MUD) taxes.

Does Texas have a state property tax?

No. Texas has no state property tax. All property taxes are levied by local entities: counties, cities, school districts, and special districts such as MUDs. The Texas Comptroller’s office provides oversight and resources but does not set or collect property taxes.