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The heavy, industrial machinery that powers Texas’ municipal budgets and property tax collections reflects the state’s reliance on this revenue source.El Paso Today
Texas is one of the states with the highest property tax rates in the country, with several major cities like El Paso, Fort Worth, San Antonio, and Arlington known for their elevated property tax burdens. The state’s reliance on property taxes to fund community needs, combined with soaring home values, have made Texas a high-tax state for homeowners.
Why it matters
High property taxes can significantly impact household budgets, especially for retirees and those on fixed incomes. The tax burden in Texas may deter some potential residents from moving to the state and make it more difficult for existing homeowners to afford to stay in their homes long-term.
The details
Texas is one of nine states that does not have a state income tax, meaning the state relies more heavily on property taxes to cover community costs and services. Cities like El Paso, Fort Worth, San Antonio, and Arlington are known for having some of the highest property tax rates in the country, with the typical homeowner paying over 1.4% of their home’s value annually in property taxes.
The Tax Foundation’s most recent data on effective property tax rates was published in 2026.Home prices in Texas have surged since the COVID-19 pandemic, further increasing the property tax burden for homeowners.
The players
Texas
One of nine U.S. states that does not have a state income tax, instead relying more heavily on property taxes to fund community needs.
El Paso
A Texas city known for having high property tax rates that contribute to the state’s overall tax burden.
Fort Worth
A Texas city known for having high property tax rates that contribute to the state’s overall tax burden.
San Antonio
A Texas city known for having high property tax rates that contribute to the state’s overall tax burden.
Arlington
A Texas city known for having high property tax rates that contribute to the state’s overall tax burden.
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What’s next
Texas lawmakers have been considering ways to provide property tax relief for residents, including potential reductions or eliminations of the tax, but it remains to be seen what specific policy changes may be implemented.
The takeaway
The high property tax burden in Texas, driven by the state’s reliance on this revenue source and soaring home values, can make it challenging for both new and existing homeowners to afford living in the state, especially in its major metropolitan areas.