Buying a home in Texas? You’re not alone. With steady growth, affordable home prices, and expanding suburbs, it’s easy to see why buyers are moving here in record numbers. But one factor every homeowner should understand before making a purchase is property taxes.
In this guide, we’ll walk you through how property taxes work in Texas, what to expect in 2025, and how programs like Bloomfield Homes incentives can help you save on your total costs.
1. How Property Taxes Work in Texas
Unlike some other states, Texas does not have a state income tax—which means local governments rely heavily on property taxes to fund schools, emergency services, and infrastructure.
Property taxes in Texas are calculated based on:
Appraised home value
Local tax rates, set by counties, cities, and school districts
Exemptions (such as for homesteads, seniors, or veterans)
In 2025, average property tax rates range from 1.6% to 2.5% of the home’s appraised value, depending on location.
2. What Are the Average Property Tax Rates by Region?
Here’s a general idea of what buyers can expect in different parts of Texas:
| Area | Avg. Tax Rate | Notes |
|---|---|---|
| Dallas County | 2.2% | Higher due to urban services and schools |
| Tarrant County (Fort Worth) | 2.1% | Balanced with suburban growth |
| Collin & Denton Counties | 1.9% | Lower in newer communities |
| Travis County (Austin) | 2.0% | Steady with rising values |
| Bexar County (San Antonio) | 2.1% | Competitive for larger homes |
3. How to Lower Your Property Tax Bill in Texas
Good news: There are ways to reduce your annual tax burden.
Homestead Exemption: Reduces the taxable value of your primary residence
Over-65 or Disability Exemptions: Freeze taxes for seniors or qualifying residents
Veteran Exemptions: Partial or full tax relief for eligible veterans
Appeal Process: You can challenge your appraisal if it seems too high
Many buyers don’t take advantage of these savings opportunities. Working with a builder like Bloomfield means you can get guidance from local experts who understand the tax-saving process.
4. Do Builder Incentives Help With Taxes?
Absolutely. While builder incentives don’t directly reduce your property taxes, they can ease the overall financial burden by:
Covering closing costs (saving thousands upfront)
Offering free upgrades or lot premiums
Helping you afford a home in a lower-tax district
Conclusion
Property taxes are an important part of your home ownership budget—but they shouldn’t be a deal-breaker. With the right knowledge, exemptions, and builder support, you can comfortably plan for your future in Texas.