The Texas trade off, in plain terms

Texas has no state income tax, and it funds schools and local services largely through property taxes instead. For many buyers moving to San Antonio and the Hill Country, that trade works in their favor, but only if they understand how the bill is built before they choose a home.

The good news: once you know the moving parts, Texas property taxes are predictable. Here is what every relocating buyer should know.

How your tax bill is built

Your annual bill is the home’s appraised value, minus any exemptions, multiplied by the combined tax rate of every local entity that serves the property. The county appraisal district sets the value each year, and each taxing entity sets its own rate.

A typical property can be taxed by several layers at once:

County, such as Bexar, Kendall, or Comal
City, if the home sits inside city limits
School district, usually the largest share of the bill
Special districts, such as a hospital district, community college, or emergency services district
MUD or PID, common in newer master planned communities to pay for roads, water, and infrastructure

Because these layers vary street by street, two homes at the same price can carry noticeably different tax bills. Always ask for the full combined rate on any home you are serious about, not just the county rate.

Inside vs. outside city limits

Much of the Hill Country sits outside incorporated city limits, and those homes do not pay a city tax at all. That is part of why areas around Boerne, Bulverde, and Spring Branch can feel like a better value than a similarly priced home in town.

The trade off is services. Outside city limits you may rely on a well or a private water supply, septic instead of city sewer, and county roads. Many buyers happily make that trade for more land and fewer restrictions, but it is worth knowing going in.

The homestead exemption: your biggest savings

If the home will be your primary residence, the homestead exemption is the single most valuable tax break available to you. For the 2026 tax year, it removes $140,000 of your home’s value from school district taxes, up from $100,000 after Texas voters approved Proposition 13 in November 2025.

Exemption	Amount off school district taxable value
General residence homestead	$140,000
Additional for homeowners 65+ or disabled	$60,000 (combined $200,000)
Counties, cities, special districts	Optional, set locally (up to 20% of appraised value)

For example, on a $450,000 home, school taxes would be calculated on $310,000 instead of the full value. A homestead also unlocks a 10% annual cap on how much your home’s taxable value can rise, and homeowners 65 and older get a school tax ceiling.

How to claim it: file Form 50-114 with your county appraisal district, along with a Texas driver’s license or ID showing the new address. It is free, you file it once, and it renews automatically. The standard deadline is April 30, and new owners can often qualify in the year they buy. Exemption amounts can change, so confirm current figures with your county appraisal district.

Buying acreage? Ask about ag and wildlife valuation

Qualifying land in agricultural use, such as grazing, hay, or beekeeping, can be taxed on its productive value rather than its market value. On Hill Country acreage, that difference can be dramatic. Many owners also convert to a wildlife management valuation, which keeps the lower valuation while managing the land for native habitat.

A few things to know before you count on it:

The valuation is not automatic for a new owner; you must apply and keep the land in qualifying use.
Each county sets its own guidelines, including minimum acreage and required activity.
If the land’s use changes, a rollback tax can apply, so ask about the property’s history and current status during your option period.

We help buyers confirm a property’s current valuation before they commit, so there are no surprises on the first tax bill.

Does it actually net out?

For many relocating buyers, yes, but it depends on where you are coming from, your income, and the home you choose.

From California, New York, Illinois, or Washington, D.C.: state (and sometimes city) income taxes are significant, so dropping them often more than offsets a higher property tax bill, especially for higher earners.
From Arizona or Colorado: income taxes there are lower flat rates, so the savings are smaller. The bigger draw is usually land, space, and overall cost of living.
From Washington State: there is no state income tax there either, so compare home prices, property taxes, and everyday costs side by side.
From elsewhere in Texas: you already know the system. The question is how rates in Kendall, Comal, and Bexar counties compare to where you live now.

The smartest move is to run the numbers on your own situation. A tax professional can estimate the income side, and we can pull the full combined rate on any home you are considering.

The Texas tax calendar and tips for your search

Texas property taxes run on a yearly cycle, and they are paid in arrears, meaning each year’s bill comes due at the end of that year.

When	What happens
January 1	Property value is assessed as of this date
Spring	Appraisal notices arrive; homeowners can protest their value, typically by May 15
April 30	Standard deadline to file for the homestead exemption
Late summer to fall	Taxing entities set their rates
October to November	Tax bills are mailed
January 31	Payment due to avoid penalties

Tips while you shop:

Look at the current year’s tax rate, not just last year’s bill, since the seller’s bill reflects their exemptions and value.
Budget for a possible escrow adjustment after your first year, when the home is reappraised closer to your purchase price.
Ask whether the home is in a MUD or PID and how long that assessment is expected to last.
Taxes are prorated at closing, and because they are paid in arrears, the seller typically credits you for their share of the year.

Thinking about a move to the Hill Country?

We help families relocate to San Antonio, Boerne, Bulverde, Spring Branch, New Braunfels, and the Texas Hill Country every year, and taxes are one of the first things we walk through together. If you are working with an agent in another city, they can refer you to us through Compass, and we will keep them in the loop every step of the way.

The Jackson Group at Compass Marisa and Chaz Jackson 210.872.2539 | thejacksongrouprealestate.com

This article is for general information only and is not tax or legal advice. Exemption amounts and rates change; confirm current figures with your county appraisal district or a tax professional.

Texas Property Taxes Explained for Buyers Moving to San Antonio and the Hill Country