Texas Property Tax Q&A
Q: How do I figure my taxes in 2026?
A: Taxes are calculated using this formula: (Taxable Value / 100) × Tax Rate = Tax Amount. Following the 2025–2026 tax relief sessions, the mandatory school district homestead exemption has increased from $100,000 to $140,000. To see a specific breakdown for your address, visit Know Your Taxes and click "Transparency for Texans.
Check your specific home’s breakdown at knowyourtaxes.org
Q: Why do we have property taxes in Texas?
A: Since Texas does not have a state income tax, property taxes are the primary source of funding for local services. This money pays for our schools, roads, police, and fire protection. These rates are set by local taxing units, not the state.
Q: Who actually collects these taxes?
A: It is the duty of the Tax Assessor-Collector to assess and collect all taxes imposed on property within the county. They then distribute those funds to the local taxing units (Cities, Schools, etc.).
Q: Where can I find a reliable tax estimator?
A: These are the most accurate tools for our local counties:
Q: What exactly is my tax based on?
A: Tax is based on the appraised value of the property. For example, the property tax on land valued at $10,000 will be ten times higher than land valued at $1,000.
Q: How is my property appraised?
A: Appraisal districts use mass appraisal techniques to value large groups of property. For a detailed breakdown of this process, you can view the Texas Comptroller’s explanation on valuing property.
Q: What are the current tax rates and exemptions?
A: You can view a full list of state-mandated exemptions at the Texas Comptroller’s website. To see the specific rates for your neighborhood, check the Collin CAD Rates & Exemptions report.
Deadlines, Payments & Exemptions
Q: When are my taxes due?
A: Statements are mailed in October and are due upon receipt. To avoid significant penalties, pay your taxes by January 31. You can pay online via eCheck or Credit/Debit at Certified Payments.
Q: What are the main exemptions I can apply for?
A: * Homestead Exemption: As of 2026, the school district exemption is $140,000. You no longer have to wait a year to file; you can apply for your Homestead Exemption online as soon as you close.
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Over 65 Exemption: You may apply at any time during your 65th birth year. This increases your school district exemption to a combined $200,000 and triggers a "tax ceiling" (freeze) on your school taxes.
A: It depends. If you file right away, you might lose the previous owner's tax cap and exemption for the current year. Watch Workshop Video #2 on our Tax Protest Page to see if you should wait.
Q: What is the 10% Homestead Cap?
A: This cap limits the increase of your home’s assessed value to 10% per year, regardless of how much the market value has spiked. This is a primary reason to file your homestead paperwork immediately.
Q: What is the "Homestead Audit" happening in Denton County?
A: Starting in 2025, Denton CAD began verifying 20% of exemptions annually. If you receive a verification letter, do not ignore it. You must re-submit your documents or you risk losing your 10% cap and your exemptions.
Troubleshooting & Protest Prep
Q: Where is my e-file number for my protest?
A: Look at the top right corner of your appraisal notice (it is often a blue or green form). If you have an e-file PIN, you can protest online. If you don't see one, you will need to file your protest via mail or in person.
Q: What if I have a complaint about the Appraiser’s professional conduct?
A: If you have a complaint against the ethics or professional conduct of an appraiser or tax assessor-collector, you can file a written complaint with the Texas Department of Licensing and Regulation.
Closing & Ownership Logistics
Q: How do "Ad Valorem" taxes work when I buy or sell a home?
A: Ad valorem taxes are paid at the end of the year. Because bills aren't mailed until October, any closing that takes place before then usually involves a "tax credit" from the seller to the buyer for the months the seller owned the home. The new owner is then responsible for paying the full bill in January. Title companies typically use the prior year’s tax amount to calculate these prorations.
Q: Where is my county spending my tax money?
A: Under "Truth in Taxation" laws, you can see exactly how local tax rate decisions affect your bill. You can find your specific county’s website and spending transparency data through the Texas Property Tax Directory.
Case Study: New Construction & Commission Changes (The "Buyer Bea" Scenario)
The 2025 commission changes have created a new "Property Tax Trap" for buyers. Here is how to navigate it.
Q: I received a letter from the Appraisal District (CAD) asking for my sales price and HUD statement. Am I required to respond?
A: No. Texas is a non-disclosure state. You are not required to respond to these requests. If you recently paid $600,000 but the CAD currently has your value at $580,000, sending them your HUD statement will likely set $600,000 as your new tax "floor." Only disclose if your purchase price was significantly lower than their appraised value.
Q: How does the CAD handle a "Buyer-Paid Commission" on my tax assessment?
A: This is a new frontier for 2026. If you paid $600,000 for the home plus a $15,000 buyer’s agent commission, our position is that the $15,000 is a "non-realty" service fee and should not be included in your property tax valuation. However, if you disclose the full HUD, some CADs may try to lump that $15,000 into the "Market Value."
Q: Is it better for my taxes if the builder pays my agent's commission?
A: Not necessarily. If you pay $615,000 for the house and the builder pays the commission, the CAD simply sees a $615,000 sale. That becomes your new taxable value. By paying the $15,000 commission separately, you have a documented argument that the "Real Estate" portion of the deal was only **$600,000**.
Q: What is the "Homestead Audit" happening in Denton County?
A: Starting in 2025, Denton CAD began verifying 20% of homestead exemptions annually. If you receive a verification letter, do not ignore it. You must re-submit your documents or you risk losing your 10% appraisal cap, which could cause a massive jump in your 2026 tax bill.
Q: Can I still protest if I missed the May 15th deadline?
A: Yes, but it's an uphill battle. You must file a "Good Cause" late protest request. The ARB (Appraisal Review Board) only accepts reasons like medical emergencies or CAD clerical errors. You can find the Good Cause form on my main Protest page.
🏠 Take the Next Step
Real estate taxes are complicated, but you don't have to navigate them alone. For more in-depth guides, videos on how to file your protest, and our personal experiences at the appraisal district this year, visit our main resource hubs:
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DFW Property Tax Guide: A deep dive into how taxes impact your home value.
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Tax Protest Headquarters: Property tax resources and Step-by-step videos and our "Cheat Sheet" for lowering your bill.
- Join our join our Facebook group for local protest insights and share your story.
