Local property taxes are the largest source of tax revenue in Texas, accounting for over half of it in 2017. While the state does not appraise property values, set property tax rates or collect property taxes, they set the operating rules for political subdivisions imposing and administering them. The property tax is used to finance the State’s 254 counties, over 1,200 cities, 1,022 independent school districts, and more than 1,800 special districts.
The property tax in Texas applies to all real property and some tangible personal property in the state. Generally, all real estate—land and buildings—whether owned by an individual or a business is taxed. While the tax also applies to all tangible personal property, “household goods or personal effects not held or used for the production of income” are specifically exempted. In effect, only tangible personal property owned by a business is taxed.
The RA Property Tax website is here to help Texans understand how the property tax system works and has developed resources using public information and reporting to present a full picture to our readers.