What Is the Property Tax in Houston, Texas?

Property tax in Houston, Texas, represents a significant source of revenue for local public services, functioning as a locally assessed and collected tax. This financial contribution is based on the appraised value of real property, including land and improvements, within the city’s boundaries. Funds generated from property taxes support a wide range of community functions, such as public education, emergency services, infrastructure maintenance, and county operations. Understanding the system of property taxation involves recognizing how properties are valued, which entities levy taxes, available exemptions, and the payment process.

Property Valuation Process

The valuation of property for tax purposes in Houston falls under the purview of the Harris County Appraisal District (HCAD). Each year, HCAD determines the market value of properties as of January 1st. This valuation considers factors including recent sales of comparable properties, physical characteristics, and improvements. Property owners receive an annual Notice of Appraised Value detailing the property’s market value and proposed taxable value.

Property owners have the right to protest their appraised value if they believe it is incorrect. The protest process begins with an informal review, where property owners can present evidence to HCAD supporting a lower valuation. If an agreement is not reached, owners can then present their case to the Appraisal Review Board (ARB), an independent panel that hears disputes between property owners and the appraisal district.

Houston’s Taxing Entities and Rates

Properties within Houston are subject to taxes levied by multiple local government entities. The City of Houston uses property tax revenue to fund municipal services like police and fire departments, street maintenance, and parks. Harris County utilizes its portion of property taxes to support county-wide services, including the court system, public health initiatives, and roads. The Houston Independent School District (HISD) is another major taxing entity, with its tax revenue dedicated to funding public education.

Other entities, such as community college districts and various special utility districts, also levy property taxes to support their respective operations. Each of these entities independently sets its tax rate annually, typically expressed as a dollar amount per $100 of a property’s assessed value. A property owner’s total annual property tax bill is consequently a cumulative sum of the taxes imposed by all applicable taxing entities.

Property Tax Exemptions

Several property tax exemptions are available to Houston homeowners, which can significantly reduce a property’s taxable value. The most common is the general residence homestead exemption, which allows a portion of a home’s appraised value to be exempt from taxation. This exemption is available for properties used as the owner’s primary residence. Applying for a homestead exemption typically requires filing an application with HCAD and providing proof of residency.

Additional exemptions are available for specific groups of homeowners. Individuals aged 65 or older and those with a disability may qualify for enhanced homestead exemptions. These “over 65” and “disability” exemptions offer a set dollar amount reduction from the appraised value for school district taxes, and they may also provide additional reductions for other taxing entities. Veterans with a service-connected disability may also be eligible for exemptions based on their disability rating, including a full exemption for 100% disabled veterans. These exemptions must be applied for through HCAD, and once granted, are automatically renewed annually unless there is a change in ownership or eligibility.

Payment and Resources

Property tax bills in Houston are typically mailed to property owners in the fall, following the annual appraisal and rate-setting processes. The full payment for property taxes is due by January 31st of the following year. Failure to pay by this deadline can result in penalties and interest charges accruing on the unpaid balance. These charges escalate over time.

Property owners have several methods for paying their tax bills. Payments can often be made online through the websites of the respective tax assessor-collector offices, via mail, or in person at designated payment centers. For certain taxpayers, including those aged 65 or older or with a disability, installment plans may be available, allowing them to pay their taxes in four equal payments without penalty or interest. Official information regarding payment options, deadlines, and current tax rates can be found on the websites of the Harris County Appraisal District and the Harris County Tax Assessor-Collector.