What is the property tax rate in Houston?

Houston's combined effective property tax rate is roughly 2.23% of assessed value. That total stacks several taxing units — the City of Houston, Harris County, the local school district, and special districts like community college and hospital districts.

Why is Texas property tax so high?

Texas has no state income tax, so property and sales taxes fund local government and schools instead. The result is one of the higher effective property tax burdens in the country, with school districts typically the largest single component.

What is the Texas homestead exemption?

If a home is your primary residence, Texas exempts a portion of its value from school district taxes — commonly $100,000 — which meaningfully lowers your bill. Additional exemptions apply for homeowners who are 65 or older or who have a disability.

Is property tax based on market or assessed value?

It is based on the appraised value set by the county appraisal district, which aims to reflect market value as of January 1. Texas also caps annual appraised-value increases on a homestead at 10% per year, limiting how fast your bill can rise.

How accurate is this estimate?

It uses a representative combined rate and the standard homestead exemption, so it is a close ballpark. Your exact bill depends on the specific rates set each year by every taxing unit covering your parcel and any extra exemptions you qualify for.

Houston Property Tax Estimator

A Houston property tax estimator that turns a home value into an annual tax bill. Because Texas has no state income tax, property taxes carry much of the load, and Houston’s combined effective rate is about 2.23% of assessed value — among the higher rates nationally. This tool applies that rate after subtracting the Texas homestead exemption, so primary-residence owners see a realistic estimate rather than a worst case.

How it works

Several taxing units stack onto the same parcel — the City of Houston, Harris County, the school district, and special districts (community college, hospital) — summing to a combined effective rate near 2.23%. The estimate works in two steps:

Taxable value = assessed value - homestead exemption, then annual tax = taxable value x 0.0223.

If the home is your primary residence, the calculator subtracts a standard homestead exemption (commonly $100,000 off the school-tax portion of value) before applying the rate. Non-homestead properties (rentals, second homes) get no exemption and are taxed on full assessed value. Texas also caps annual appraised-value growth on a homestead at 10%, which limits how fast the bill can climb year to year.

Example and notes

A $350,000 primary residence with a $100,000 homestead exemption has a $250,000 taxable value. At 2.23% the estimated annual tax is $5,575 — versus $7,805 with no exemption, showing how much the homestead break is worth.

Notes: the 2.23% figure is a representative combined effective rate; your real rate is the sum of each taxing unit’s annual rate for your exact location. Seniors, disabled homeowners, and veterans may qualify for further exemptions not modeled here. All calculations run locally in your browser.