Updated October 2026. We rewrote this guide with real county numbers from the Tax Foundation, Texas and Florida exemption rules from the state agencies, and the IRS rules on deducting property tax and splitting it at a sale. All read this month.
Property tax is a yearly local tax based on your home’s assessed value (one of three kinds of property value) times the local tax rate, minus any exemptions. As of October 2026, the effective rate runs from about 0.81% in Miami-Dade County to 1.50% in Harris County, Texas, and 1.73% in Cook County, Illinois (Tax Foundation, 2024 data). Homestead exemptions can cut the bill a lot.
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Property tax in four lines
- Bill = taxable value × tax rate. Taxable value = assessed value minus exemptions.
- Texas school districts must give a $140,000 homestead exemption (Tax Code 11.13(b), Texas Comptroller).
- Florida’s homestead exemption can cut taxable value by up to $50,000 and adds the Save Our Homes cap (Florida DOR).
- The federal SALT deduction cap is now $40,000 ($20,000 married filing separately), with an income phase-down (IRS).
Most people only think about property tax twice: when they buy and when the bill jumps. It’s worth a little more attention than that. In a lot of places it’s the biggest yearly cost of owning after the mortgage, and the rules for lowering it are local. A homeowner in Harris County who never files for the homestead exemption can easily pay thousands more than a neighbor with the same house.
What are property taxes and who sets them?
Property tax is what you pay your local government each year for the home you own. It pays for schools, police, fire, roads and parks. More than one body can tax the same home: the county, the city, the school district and special districts. Each one sets its own rate. Your bill adds them up.
Two offices do two jobs. One sets the value. In Texas, the Comptroller says appraisal districts value homes as of January 1 each year. The other sends the bill. Rates are often shown as a percent or in mills (dollars per $1,000 of value). Our guide to the Connecticut mill rate shows how mills work.
Every state writes its own code. Texas is a good example of how detailed it gets: this overview of the Texas property tax code walks through its main sections, from exemptions and appraisal to collections, delinquency and remedies. Read the parts on exemptions and protests closely, because that’s where you can change your bill.
How do I know what my property tax bill will be?
Find three numbers: the assessed value, your exemptions and the combined tax rate. Your county appraiser or assessor’s website usually shows all three for your parcel. To look up a parcel, see our guides for Florida property tax numbers, Illinois property tax numbers and the Alabama parcel number, APN or tax ID.
Here’s what the Tax Foundation’s 2024 county data show for typical homes:
| County | Median home value | Median tax paid | Effective rate |
|---|---|---|---|
| Miami-Dade, FL | $463,000 | $3,744 | 0.81% |
| Hillsborough, FL | $371,500 | $3,010 | 0.84% |
| Harris, TX | $276,600 | $4,489 | 1.50% |
| Travis, TX | $523,000 | $7,727 | 1.31% |
| Cook, IL | $324,500 | $6,191 | 1.73% |
Location matters a lot, which is worth keeping in mind when you look for the right place to buy. A home near a city center often has a higher value and a higher bill.
When are property taxes due?
It depends on the county. Some bill once a year. Others split it into two or four payments. If you have a mortgage, your lender often pays it for you. It adds a monthly amount to your payment, holds it in escrow and pays the bill. Check your escrow statement each year. A higher tax bill means a higher payment.
Pay late and you owe penalties and interest. Unpaid taxes become a lien on the home. Rules are similar in spirit almost everywhere. Singapore’s tax office, for example, spells out the penalties if you do not pay them on time. In the U.S., if you know you can’t pay, call the tax collector early and ask about payment plans.
Texas also has a protest calendar. The Comptroller notes that the appraisal review board begins hearing protests around May 15. If your appraisal notice looks high, that’s your window.
How can I lower my property taxes?
Start with exemptions, which most states offer for a primary home:
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Buy a home →- Texas: school districts must offer a $140,000 residence homestead exemption under Tax Code Section 11.13(b), and local taxing units may add more.
- Florida: the homestead exemption can reduce taxable value by as much as $50,000 and qualifies the home for the Save Our Homes assessment limitation. You may be able to port part of that benefit to a new Florida homestead.
- Most states: extra relief for seniors, veterans, people with disabilities and surviving spouses.
Then check your value. If it’s higher than what homes like yours sold for, file a protest. Bring recent sales as proof. Most people don’t need a lawyer for this. Our free home value calculator gives you a starting point.
On your federal return, property tax is part of the state and local tax (SALT) deduction if you itemize. The IRS now caps SALT at $40,000 ($20,000 if married filing separately), reduced for higher incomes but not below $10,000.
How are property taxes handled when you buy or sell a home?
They’re split at closing. IRS Publication 530 says the seller is treated as paying the tax up to, but not including, the sale date, and the buyer from that date on. The closing statement shows the split. Where taxes are billed late in the year, the seller often gives the buyer a credit for the months they owned the home.
Special assessments are extra charges for things like road work, sewer lines or flood control. Ask about them before you buy. Tell buyers about known ones when you sell. They can be a big surprise at closing. Selling? Read do I need to pay taxes when I sell my home and who pays closing costs.
A title company calculates the proration and pays any taxes due from closing funds. Beycome Title handles closings in Florida and Texas, and adds Michigan, Ohio, Illinois and Indiana. To list, a Beycome flat fee MLS listing starts at $99, with $0 due to Beycome at closing. Buying a second home? See how to rent out your first, since a rental usually loses the homestead exemption.
Property tax questions
How are property taxes calculated?
Taxable value (assessed value minus exemptions) times the combined rate of every local taxing unit. Your county shows each part.
What is the homestead exemption in Texas?
School districts must provide a $140,000 residence homestead exemption under Tax Code Section 11.13(b). Local units can add their own.
How much does the Florida homestead exemption save?
It can lower taxable value by as much as $50,000 and qualifies the home for the Save Our Homes assessment limitation, per the Florida Department of Revenue.
Can I deduct property taxes on my federal return?
Yes, if you itemize, within the SALT cap of $40,000 ($20,000 married filing separately), which phases down at higher incomes but not below $10,000.
Who pays property taxes in the year a home is sold?
Both. The IRS treats the seller as paying up to the date of sale and the buyer from that date. The split shows on the settlement statement.
How do I appeal my property tax assessment?
File a protest with your county appraiser or review board by the deadline on your notice, with recent comparable sales. In Texas, hearings start around May 15.
County figures: Tax Foundation, Property Taxes by State and County (2024 five-year estimates). Exemptions: Texas Comptroller and Florida Department of Revenue. Federal rules: IRS Topic 503 and Publication 530. Rates, exemptions and deadlines change and vary by county. General information, not tax or legal advice.
Beycome prices as of November 2026 and subject to change: Basic $99, Enhanced $399; Concierge is $1,399. Basic is $129 in California and Illinois ($99 elsewhere). “$0 at closing” means no Beycome fee at closing; taxes, title and any buyer-agent compensation you agree to still apply.
Beycome Title: Florida, Texas, Michigan, Ohio, Illinois and Indiana.
Sources
- Tax Foundation, Property Taxes by State and County, read October 28, 2026.
- Texas Comptroller, Property Tax Exemptions, read October 28, 2026.
- Texas Comptroller, Property Tax Basics, read October 28, 2026.
- Florida Department of Revenue, Property Tax Exemptions and Additional Benefits, read October 28, 2026.
- IRS, Topic 503, Deductible Taxes, read October 28, 2026.
- IRS, Publication 530, Tax Information for Homeowners, read October 28, 2026.
- Beycome, listing package features, October 2026.
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