What are the Average Property Taxes in Austin?

The average property tax rate in Austin, TX ranges from about 1.4% to 2.8% depending on where you live, with most homeowners paying between 1.8% and 2.1% of their home’s appraised value each year. On a median-priced Austin home of around $525,000, that works out to roughly $9,500 to $11,000 per year before exemptions.

That’s a wide range, and it is not arbitrary. Property taxes in the Austin metro vary significantly from one area to the next, sometimes from one neighborhood to the next, based on the specific taxing entities that cover your address. A home in Driftwood might carry a combined rate of 1.66% while a similar home in Kyle or Jarrell could exceed 2.37%.

If you are buying in Austin, understanding how property taxes are calculated, what rates look like where you are shopping, and which exemptions you qualify for could add up to thousands of dollars in annual savings. This guide covers 2025–2026 rates, breaks down every entity on your bill, and walks through what to expect across 24 Austin-area markets.

How Austin Property Taxes Work

Texas has no state income tax. To fund schools, roads, hospitals, emergency services, and local government, Texas relies heavily on property taxes, and the amounts can be significant.

Your Austin-area tax bill is not one flat rate set by a single authority. It is the combined total of several separate taxing jurisdictions, each with their own rate, their own exemptions, and their own rules. Every property in Texas sits within multiple overlapping taxing entities, and the combination you are in determines your total rate.

For a home inside Austin city limits in Travis County, those entities are typically:

• Austin ISD (school district, typically the largest piece of the bill)
• City of Austin
• Travis County
• Travis County Healthcare District (Central Health)
• Austin Community College District

Buy in Georgetown instead, and your bill pulls from Georgetown ISD, Williamson County, the City of Georgetown, and the Williamson County FM/Road District. Buy in Round Rock, Cedar Park, or Pflugerville, and the combination changes again. This is why there is no single answer to “what are Austin property taxes.” The rate depends entirely on your address.

2025–2026 Property Tax Rates in Austin

For the most common scenario, a home inside Austin city limits in Travis County, here are the 2025–2026 rates for each taxing entity:

Estimate based on full appraised value of $500,000 with no exemptions applied. The Travis Central Appraisal District does not charge a separate tax rate; its operations are funded through the county allocation.

A few things worth noting about the current rates: the City of Austin rate of $0.524017 per $100 represents a 9.7% increase from the prior year rate of $0.477600. Austin ISD, at nearly $0.93 per $100, accounts for close to 45% of a typical Austin homeowner’s combined bill.

If you live in one of Austin’s suburbs, your rates will look different. Here is how a Georgetown, Williamson County home breaks down as an example:

Even though Georgetown ISD’s school rate is higher than Austin ISD’s, the combined total is lower because the city and county rates are smaller than those inside Austin city limits. Location within or outside city limits is often the biggest variable in your total bill.

What Your Tax Bill Looks Like

Below are estimated annual tax bills at different price points inside Austin city limits (Travis County), before and after the standard homestead exemption:

*The homestead exemption removes $140,000 from the school district’s taxable value. At the 2025–2026 Austin ISD rate of 0.9252%, that saves approximately $1,295 per year. Additional exemptions from the city and county may further reduce your bill.

For buyers financing their purchase, most lenders will escrow your property taxes monthly. On a $500,000 Austin home after the homestead exemption, that adds roughly $745 per month to your payment for taxes alone, before principal, interest, and insurance. Factor that in before you decide how much house to buy.

See also: How Much House Can I Afford in Austin?

Property Tax Rates by Austin Area

The table below shows the 2025 property tax rate range and area average across 24 Austin metro markets, based on individual neighborhood rate data across the region. Rates within an area can vary considerably depending on whether a property sits inside city limits, within a Municipal Utility District (MUD), or in a different school district zone.

Source: 2025 neighborhood-level tax rate research, Eleven Oaks Realty. Rates reflect the combined total of all applicable taxing entities for each neighborhood.

• Lowest average rates: West Austin (avg 1.66%), Driftwood (avg 1.66%), and Spicewood (avg 1.70%) consistently come in below the metro average. Much of West Austin’s advantage comes from properties that are not inside a Municipal Utility District, which can add 0.3% to 1.0% or more to rates in suburban developments.
• Highest average rates: Jarrell (avg 2.39%), Kyle (avg 2.37%), and Pflugerville (avg 2.21%) tend to run higher, partly due to MUD districts and school district rates in those areas.
• Widest variation within an area: Georgetown and Liberty Hill both show ranges from around 1.5% to over 2.6%, reflecting the mix of city-limit and non-city properties, MUD districts, and different school district zones within those communities.

See also: Austin Neighborhoods with the Lowest Property Tax Rates

How Your Tax Bill Is Calculated

Understanding how each number on your bill is derived helps you spot errors and identify opportunities to lower what you owe.

Step 1: The appraisal district sets your market value. The Travis Central Appraisal District (TCAD) or Williamson Central Appraisal District (WCAD) appraises your property as of January 1 each year. Their goal is to estimate what your property would sell for on the open market on that date.

Step 2: The homestead cap limits annual increases. For any property with a homestead exemption in place, the appraisal district can only raise your assessed value by a maximum of 10% per year, regardless of market conditions. In a strong market, this cap can create a meaningful gap between your appraised market value and your taxable value.

Step 3: Exemptions reduce your taxable value. After the cap is applied, your exemptions are subtracted to arrive at your taxable value for each entity. The school district exemption ($140,000 for a homestead) is typically the largest reduction.

Step 4: Each taxing entity multiplies your taxable value by its rate. The amounts from each entity are summed to produce your total annual bill.

Step 5: Your bill is due by January 31. Property taxes are paid in arrears. Your 2025 tax bill, based on your January 1, 2025 appraised value, is due by January 31, 2026. Penalties begin at 7% in February and increase each month after that.

Here is a real-world example from a Georgetown (Williamson County) home appraised at $580,619 in 2025:

Example based on a 2025 Williamson County tax statement for a homestead property. The school district taxable value reflects the $140,000 homestead exemption. The city and county taxable values reflect the homestead cap adjustment.

Property Tax Exemptions That Can Lower Your Bill

Texas offers several exemptions that can meaningfully reduce your annual property tax bill. Here is a breakdown of the main ones available to Austin-area homeowners.

Homestead Exemption

The homestead exemption is available to any Texas homeowner who occupies the property as their primary residence. For 2025, the school district portion of this exemption is $140,000, up from $100,000 following the passage of Proposition 13 in November 2025 (approved by 79% of Texas voters).

This exemption removes $140,000 from your taxable value for school district purposes, which is typically the single largest item on your bill. Many cities and counties also offer their own additional homestead exemptions, though amounts vary by entity. The exemption also establishes a 10% annual cap on assessed value increases as long as it remains in place. To apply, file with your county appraisal district after January 1 of the year you move in. There is no annual renewal required once the exemption is established.

Over-65 Exemption

Homeowners age 65 or older qualify for an additional $60,000 school district exemption on top of the standard $140,000, for a combined $200,000 exemption from school district taxes. This exemption also places a permanent freeze on the school district portion of your tax bill at the level it was in the year you turned 65 or first applied. Your school taxes will not increase above that ceiling as long as you remain in the home, regardless of future rate or appraisal changes.

Disabled Person Exemption

A homeowner with a qualifying disability receives the same $200,000 combined school district exemption and the same tax ceiling as the over-65 exemption. You can apply through your county appraisal district with documentation from the Social Security Administration or a qualifying physician.

100% Disabled Veteran Exemption

Texas veterans with a 100% VA disability rating owe no property taxes at all on their primary residence. The exemption extends to the surviving spouse of a qualifying veteran. Partial disability ratings ranging from 10% to 90% receive scaled exemptions between $5,000 and $12,000 off the property’s appraised value.

See also: Retiring in Austin? What You Need to Know About Texas Property Taxes and Exemptions

See also: Austin Luxury Home Property Taxes

How to Protest Your Austin Property Taxes

Protesting your property tax appraisal is your legal right as a Texas property owner, and it works more often than most people expect. Studies consistently show an 80% to 91% success rate when property owners show up to hearings with comparable sales evidence.

1. Watch for your appraisal notice in April. TCAD and WCAD typically mail Notices of Appraised Value in April to property owners whose market value increased by $1,000 or more. The protest clock starts the day your notice is mailed.
2. File your protest by May 15, 2026. The deadline to protest your 2026 appraisal is May 15, 2026, or 30 days after your notice is mailed, whichever comes later. You can file online through the appraisal district portal, by mail, or in person. Missing this deadline means losing your right to protest for the year.
3. Gather your evidence. Pull comparable sales for homes similar to yours that sold near January 1 of the appraisal year. Document any condition issues and review the appraisal district’s data on your property for errors such as incorrect square footage or bedroom counts.
4. Attend your informal hearing. TCAD’s informal process begins in April. This is a one-on-one conversation with a staff appraiser where many protests are resolved without going further. Upload your evidence through the portal before your hearing date.
5. Request an ARB hearing if needed. If you are not satisfied with the informal result, you can request a formal hearing with the Appraisal Review Board, an independent panel that hears disputes and has authority to lower your appraised value.

See also: How to Challenge Your Property Taxes in Austin, Texas

Austin vs. Other Texas Cities

Texas is known for high property taxes relative to other states, and Austin holds its own as one of the higher-rate metros in Texas, particularly for properties inside city limits. That said, suburban and Hill Country areas of the Austin metro are often more competitive.

For properties inside Austin city limits, the combined rate of around 2.05% is generally comparable to urban Dallas and San Antonio rates, though lower than some suburban Houston areas that carry MUD districts and can exceed 3.0%. The primary variable across all Texas metros is school district rates, which make up the largest share of any property’s tax bill.

The broader context matters too. Texas has no state income tax. Buyers relocating from California, New York, Illinois, or other high-income-tax states often find that even with higher property taxes, their overall tax burden is lower or comparable, particularly for higher-income households.

See also: Complete Cost of Living Comparison: Texas Cities for Home Buyers

What Home Buyers Should Budget

Property taxes in Austin are a real cost, and they are worth calculating carefully before you make an offer.

A practical starting point: divide your estimated annual tax bill by 12 and add that amount to your monthly housing budget alongside principal, interest, insurance, and any HOA dues. On a $500,000 home inside Austin city limits with the homestead exemption, that is roughly $745 per month in taxes alone.

Keep two things in mind as a buyer. First, the prior owner may have had a significant homestead cap in place, which means their taxable value was likely lower than the sale price. After a transfer of ownership, the appraisal district resets the value toward market at the next appraisal cycle, which can push your first-year tax bill meaningfully higher than what the prior owner paid. Second, your homestead exemption does not take effect until January 1 of the year following your purchase, unless you purchase and establish the property as your primary residence before January 1.

If you are buying a higher-priced home, the tax strategy becomes more nuanced. See also: Austin Luxury Home Property Taxes

See also: How Much House Can I Afford in Austin?

Frequently Asked Questions

What is the property tax rate in Austin, TX in 2026?

For a home inside Austin city limits in Travis County, the combined 2025–2026 property tax rate is approximately 2.046% ($2.0464 per $100 of assessed value). This includes Austin ISD at 0.9252%, City of Austin at 0.5240%, Travis County at 0.3758%, Central Health at 0.1180%, and Austin Community College at 0.1034%.

How are Austin property taxes calculated?

Your tax bill equals your taxable value multiplied by your tax rate, summed across all applicable taxing entities. Taxable value is your appraised value minus any applicable exemptions and cap adjustments. Because multiple entities each have their own rates and exemption rules, your total bill is the combined result of several individual calculations.

When are Austin property taxes due?

Property taxes across Texas are due by January 31 of the year following the tax year. Your 2025 taxes are due by January 31, 2026. Penalties start at 7% in February, increase to 9% in March, 11% in April, 13% in May, and 15% in June, plus attorney fees may apply after July.

How much are property taxes on a $400,000 home in Austin?

For a home appraised at $400,000 inside Austin city limits, the estimated annual bill before exemptions is approximately $8,186. With the homestead exemption applied, that drops to around $6,891 per year, or about $575 per month. Properties outside Austin city limits or in different school districts will have different totals.

Can I lower my Austin property taxes?

Yes, through two main avenues. First, file for every exemption you qualify for, starting with the homestead exemption. If you are 65 or older or have a qualifying disability, additional exemptions apply. Second, protest your appraisal if you believe the district has overvalued your property. Both strategies are legal, available to any property owner, and can produce meaningful savings.

Do seniors get a property tax break in Austin?

Texas homeowners age 65 and older receive a $200,000 combined school district exemption and a permanent freeze on their school district taxes. This means your school district taxes will not increase above the level set in the year you first qualified, regardless of future rate or appraisal changes. Additional exemptions from the city and county may also apply. See also: Retiring in Austin? What You Need to Know About Texas Property Taxes and Exemptions

What is the difference between appraised value and taxable value?

Your appraised value is the appraisal district’s estimate of what your property would sell for on the open market as of January 1. Your taxable value is lower. It is what remains after subtracting applicable exemptions and applying the 10% annual homestead cap. For most long-term homestead owners, the taxable value can be significantly lower than the current market value, especially after years of appreciation above the cap.

The Bottom Line on Austin Property Taxes

Property taxes in Austin are a real cost, and the range across the metro is wider than most buyers expect. Whether you are looking at a home in South Austin, a Georgetown subdivision, or a rural property in Driftwood or Dripping Springs, your tax bill could vary by thousands of dollars per year based on your specific address.

The good news is that Texas gives you real tools to manage that bill. File your homestead exemption as soon as you are eligible, look into any additional exemptions that apply to your situation, and do not overlook the protest process if your appraisal seems high.

If you have questions about property taxes in a specific neighborhood or want help understanding what you are looking at on a listing, reach out to the team at Eleven Oaks Realty. Helping buyers make informed decisions has been at the core of what we do since 1978. You can also explore more on how much property taxes are in Austin, or contact us directly — we are happy to walk you through the tax picture on any specific property or neighborhood.

Call: (512) 827-8323
Email: info@11OaksRealty.com
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