Texas has no state property tax; the bill is the sum of local rates — city, county, school district, college, hospital, and any special districts — applied to the appraisal district’s value each year, and for a rental there is no homestead exemption. Two Tax Code provisions shape a rental budget. §41.44: a protest of the appraised value must be filed by May 15 or the 30th day after the appraisal notice, whichever is later. And §23.231: for tax years 2024 through 2026 a “circuit breaker” limits the annual increase in the appraised value of non-homestead real property worth up to $5 million (indexed) to 20% plus new improvements — a limitation that “expires December 31, 2026,” so a 2027 budget should assume it is gone unless the Legislature extends it. Rates are adopted each autumn under the truth-in-taxation process; the twenty city guides on this site record the current city rates and link the appraisal districts.
Building the line
| Input | Where | Note |
|---|---|---|
| Appraised value | Appraisal district notice (spring) | Protest deadline: May 15 or 30 days after the notice (§41.44) |
| Taxing units | Appraisal district record | City, county, ISD, college, hospital, MUD, ESD, drainage or navigation districts by address |
| Rates | Each unit’s adopted rate (autumn); the appraisal district or county tax office compiles them | City rates for twenty cities are on this site’s city guides |
| Exemptions | None for a rental homestead; over-65 and homestead exemptions belong to owner-occupants | Budget on full value |
| Circuit breaker | 20% cap on appraised-value increases for qualifying non-homestead property through tax year 2026 | §23.231; expires December 31, 2026 |
| Payment | County tax office; due January 31; penalties and interest after | Escrow if mortgaged |
The calendar
- April–May: appraisal notice arrives; compare with sales evidence and the prior year; file a protest by the §41.44 deadline if the value is wrong.
- Summer: appraisal review board hearing if protested.
- August–September: taxing units publish proposed rates and hold hearings; adopted rates follow.
- October–November: tax bills issue; budget the exact figure.
- January 31: payment due; file the receipt with the year’s tax records.
Why the rent budget needs it
Across the twenty cities on this site, combined rates in September 2026 range from roughly $1.7 to $2.6 per $100 of value, and the value moves every year. A rent set without the current bill is a guess; an increase justified by a documented tax change is a lawful, non-retaliatory ground when the lease has an escalation clause for taxes (Property Code §92.332(a)(1)).
Frequently asked questions
Is there a homestead exemption for a Texas rental?
No — homestead exemptions and the over-65 freeze belong to owner-occupied residences; a rental is taxed on its full appraised value.
When is the deadline to protest a Texas appraisal?
May 15 or the 30th day after the appraisal notice was delivered, whichever is later (Tax Code §41.44).
What is the 20% circuit breaker?
A limitation, for tax years 2024–2026, on annual increases in the appraised value of non-homestead real property worth up to $5 million (indexed) to 20% plus new improvements; it expires December 31, 2026 (Tax Code §23.231).
Sources
Rules change and the right answer can depend on the home, the city, the lease and the timing. These are the official pages this guide relies on; check them before signing, charging a fee, sending a notice or making a legal decision.
- Texas Tax Code §41.44 — notice of protest (May 15 or 30 days after the appraisal notice) ↗
- Texas Tax Code §23.231 — circuit breaker limitation on appraised value of non-homestead real property (expires December 31, 2026) ↗
- Texas Property Code, Chapter 92 — Residential Tenancies ↗
- IRS Publication 527 (2025) — Residential Rental Property ↗
General information for U.S. landlords, with a Texas focus. This guide is not legal, tax or accounting advice. Consult a qualified professional for your situation. Written by the rentalfreelease.com Editorial Team; last reviewed September 19, 2026.