Austin TX Property Tax Overview
Texas has no state income tax, but property owners pay some of the highest property tax rates in the nation to fund local schools, county services, and city government. In Austin (Travis County), effective tax rates typically run 1.7%–2.2% of appraised value, making property taxes the largest ongoing cost of homeownership after your mortgage.
Understanding how Austin property taxes work — and how to reduce them legally — is essential knowledge for every Austin homeowner and investor.
How Austin Property Taxes Are Calculated
Your tax bill = (Appraised Value - Exemptions) x Tax Rate
Austin property taxes are collected by multiple taxing entities:
- Austin ISD (or other school district) — typically the largest portion (~1.0–1.1%)
- Travis County — ~0.35–0.40%
- City of Austin — ~0.45–0.55%
- Austin Community College — ~0.10%
- Hospital District — ~0.09%
- Total effective rate: ~1.8–2.2% for Austin proper
Travis County Property Tax Rates (2025)
| Taxing Entity | Rate (per $100 value) |
|---|---|
| Austin ISD | $1.0145 |
| Travis County | $0.3547 |
| City of Austin | $0.4627 |
| ACC (Austin CC) | $0.0943 |
| Healthcare District | $0.0857 |
| Total (Austin proper) | ~$2.01–$2.10 |
Note: Rates for Round Rock (Williamson County), Cedar Park, and Georgetown differ — generally 1.6–2.0%.
Sample Property Tax Bills (Austin, 2025)
| Home Value | Annual Tax (Austin proper) | Monthly Escrow |
|---|---|---|
| $350,000 | $7,000–$7,350 | $583–$613 |
| $450,000 | $9,000–$9,450 | $750–$788 |
| $550,000 | $11,000–$11,550 | $917–$963 |
| $700,000 | $14,000–$14,700 | $1,167–$1,225 |
Texas Homestead Exemption (2025)
Filing the homestead exemption is the single most important step to reduce your Austin property tax bill:
- General homestead exemption: $100,000 reduction in school district taxable value
- Travis County optional exemption: Additional 20% reduction (if offered by your taxing units)
- Over 65 freeze: School taxes frozen when you turn 65 — cannot increase for the rest of your ownership
For a $450,000 home, the $100,000 school exemption saves approximately $1,015/year.
Disabled Veteran Property Tax Exemptions in Texas
Texas provides among the most generous disabled veteran property tax exemptions in the country:
| VA Disability Rating | Exemption |
|---|---|
| 10%–29% | $5,000 off appraisal |
| 30%–49% | $7,500 off appraisal |
| 50%–69% | $10,000 off appraisal |
| 70%–99% | $12,000 off appraisal |
| 100% P&T or IU | Full exemption — $0 property taxes |
A 100% P&T veteran pays no property taxes on their primary residence in Texas. This benefit is worth $7,000–$15,000/year in Austin depending on home value.
How to Protest Your Austin Property Appraisal
The Travis Central Appraisal District (TCAD) sets appraised values annually. If your appraisal is too high, you have the right to protest.
Protest Deadlines
- Standard deadline: May 15 (or 30 days after receiving your notice, whichever is later)
- File online at: traviscad.org → "Online Protest Portal"
Grounds for Protest
- Value is too high — Most common. Requires comparable sales evidence.
- Unequal appraisal — Your property is assessed higher than comparable properties in the neighborhood.
- Inaccurate property data — Square footage, number of rooms, or features are listed incorrectly.
What Evidence to Gather
- Recent sales of comparable homes within 0.5 miles (ideally within 6 months)
- Any condition issues not visible from the exterior (foundation problems, roof damage, deferred maintenance)
- Photos of defects
- Your purchase price if you bought within the past 12 months
DIY vs. Hiring a Tax Consultant
Many Austin homeowners hire property tax consultants who work on a contingency basis — typically 25–40% of the savings they achieve. If you save $1,500, they keep $375–$600. Many homeowners find this worthwhile given the time savings.
You can also protest yourself — the online process is straightforward if you have comparable sales data.
Cap on Appraisal Increases
Texas law limits annual appraisal increases to 10% per year for properties with a homestead exemption. This cap provides significant protection in rising markets — your tax bill cannot spike more than 10% annually even if market values jumped 20–30%.
Investment properties do NOT have this 10% cap.
Property Tax Escrow: How It Works
When you finance your home, your lender typically requires an escrow account that collects 1/12 of your annual property tax and insurance with each monthly payment, then pays the bills when due (typically January–March in Travis County).
Watch your escrow account carefully — if your appraisal rises or you miss the homestead exemption deadline, your escrow payment will adjust significantly at the next annual review.
Frequently Asked Questions
Austin proper (Travis County) has an effective rate of ~2.0–2.2% including all taxing entities. On a $450,000 home, expect $9,000–$9,900/year in property taxes.
Yes. Texas offers a full property tax exemption for 100% P&T disabled veterans. Partial exemptions apply for 10–99% disability ratings. This is one of the most valuable veteran benefits in the state.
