The 10 counties with the highest property taxes in Texas

If you’re a homeowner in the state of Texas, you have the joy of living without any state income tax, and this has become one of the most powerful selling points of the state. Whether you are a retiree, a remote worker, or anyone looking to keep more of what they earn, the Lone Star State has plenty of appeal. 

The problem is that the savings you can find in Texas don’t tell the whole story, as you can also be stuck with a hefty property bill. Texas relies heavily on property taxes to fund local schools, services, and infrastructure, and some counties have raised their effective tax rates above 2%. To put this into perspective, if you own a home at $300,000 in one of these counties, you could be looking at a property tax bill of $6,000 or more in property taxes alone. 

For investors  who are building income-focused portfolios or retirees counting on ETFs and withdrawal strategies to cover living expenses, property taxes aren’t just a line item. These are recurring drag on cash flow that isn’t concerned with the market being up or down. Understanding where these costs are highest in Texas matters, whether you are planning a move or just trying to get an honest read on what retirement actually costs in a state that markets itself as being tax-friendly. 

Why Property Taxes Hit Harder Than Most People Expect In Texas

The reason that Texas property taxes catch so many people off guard is that they operate on a very different model than most states. Without income tax revenue to lean on, counties and school districts alike depend almost entirely on property assessments to keep the lights on. This is where it gets personal for retirees and income-focused investors, as a rising property tax bill isn’t worried about your 4% or 5% carefully constructed withdrawal strategy. Instead, it just arrives, and in the counties on this list, it arrives with force. 

The other factor worth understanding is that Texas appraisal districts reassess property values regularly, and in fast-growing areas, those reassessments can lead to sharp year-over-year increases. Homestead exemptions and protest filings can help soften the blow, but won’t eliminate them completely either. 

10. Bexar County

• Average Effective Property Tax Rate: 1.99% 

Just under the 2% mark, Bexar County is massive with a population of around 2.13 million people, which includes San Antonio, the fourth most populous city in the state. The area is over 1,250 square miles and encompasses the Alamo, as well as a $5,970 tax bill on a $300,000 home. 

9. Rockwell

• Average Effective Property Tax Rate: 2.06% 

Home to approximately 137,000 people, Rockwall County is a case study in what happens when growth collides in a small geographic region only 149 square miles large. The smallest county in Texas, its population has exploded since 2010. A property tax rate of 2.06% is equivalent to $6,180 in property tax bills on a $300,000 home. 

8. El Paso County

• Average Effective Property Tax Rate: 2.10% 

If you live in El Paso with 876,000 of your friends, you’re enjoying the state’s eighth-highest property tax bills. Home values in the area are lower to the tune of approximately $60,000 below the state average, but this doesn’t mean property taxes come much cheaper. A $6,300 tax bill still awaits you on a $300,000 home. 

7. Travis County

• Average Effective Property Tax Rate: 2.15% 

Travis County is where high-priced homes and high service costs collide as the home of Austin, the state capital, and one of the fastest-growing metros in the country. Corporate relocations and the tech boom have driven up home prices as well as property taxes, resulting in a $6,450 property tax bill for a $300,000 home owner in the county. 

6. Dallas County

• Average Effective Property Tax Rate: 2.18% 

The second most populous county in the United States, with over 2.65 million people, is packed into an area that is roughly 909 square miles. The city of Dallas alone is the fourth-largest metro area in the country, and the tax burden of running the region contributes to the property tax burden. Expect a $6,540 property tax bill on a $300,000 home. 

5. Collin County

• Average Effective Property Tax Rate: 2.19% 

Part of the Dallas-Fort Worth region of Texas, Collin County is the sixth largest in the state and the 43rd largest in the country. Approximately 1.25 million people call this area home, and the key driver behind its tax rate is school funding, as it’s home to some of the highest-rated school districts in the state. A $300,000 home here will cost around $6,570 in property taxes every year. 

4. Williamson County

• Average Effective Property Tax Rate: 2.22% 

With an estimated population of around 727,480, Williamson County lies north of Austin and has seen tens of thousands of new residents move there for a more suburban lifestyle. More than 25,000 new residents came in the most recent census year, and for all of those new residents, a $300,000 home is equivalent to $6,660 in property taxes. 

3. Harris County

• Average Effective Property Tax Rate: 2.31%

Home to Houston, Harris County is the most populous in Texas and the third most populous in the United States, behind only Los Angeles and Cook County in Chicago. More than 5 million residents call this area home, in an area that is bigger than Rhode Island. Living here in a $300,000 home would mean $6,930 in annual property taxes. 

2. Tarrant County

• Average Effective Property Tax Rate: 2.37%

The third most populous county in the state, Tarrant County, is home to Fort Worth and has a population of 2.2 million living in a 902 square mile area. The city has transformed from a cattle town to a huge growth market, and property taxes here contribute to school district funding and the price of keeping up with rapid suburban expansion. A $300,000 home is equal to $7,110 annually in property taxes. 

1.  Fort Bend County

• Average Effective Property Tax Rate: 2.48% 

Founded in 1837, Fort Bend County has an estimated population of 958,434, with cities such as Sugar Land and parts of Houston. It’s the state’s eighth-most populous county and one of the fastest-growing in the country, which has undoubtedly contributed to the rising property tax rate. On a $300,000 home, you’re looking at approximately $7,440 in property taxes annually.