🏡 How Much Are Property Taxes in Houston? What Every Buyer Should Know

If you’re planning to buy a home in Houston, Texas, you’ve probably noticed one thing right away — property taxes here can vary a lot.

Whether you’re moving from another state or upgrading within the area, understanding Houston property taxes is key to setting the right budget. As a Top Realtor in Cypress, TX and award-winning Realtor in Houston with over 13 years of experience, I always tell my clients: in Texas, property taxes are local — and location matters a lot.

💰 What’s the Average Property Tax Rate in Houston?

The average property tax rate in the Houston area typically ranges from 2.3% to 3.8% of a home’s assessed value.
Unlike many other states, Texas doesn’t have a state income tax, which means local governments rely more heavily on property taxes to fund schools, police, roads, and community services.

That’s why rates can differ so much from one neighborhood or subdivision to another — even within the same ZIP code.

📍 Do Property Taxes Vary by County? Absolutely.

Greater Houston spans multiple counties, and each one has its own tax rates and authorities.

Here’s a quick look:

• Harris County (includes Houston & Cypress): Around 2.5% – 3.5% depending on the subdivision and MUD (Municipal Utility District).

• Fort Bend County (includes Katy & Sugar Land): Generally 2.2% – 3.3%, often lower in established neighborhoods.

• Montgomery County (includes The Woodlands & Magnolia): Around 2.0% – 2.8%, with some of the region’s most competitive rates.

• Waller County (includes parts of Cypress & Hockley): Typically 2.3% – 3.1%, depending on the community and utility districts.

💡 Pro Tip from a Relocation Specialist in Houston: When you’re comparing homes, don’t just look at price — check the total tax rate on HAR.com or through your lender’s estimate. Two homes with similar prices can have very different monthly payments once taxes are included.

🏘️ Why Subdivisions and MUDs Matter

One of the biggest factors that affects your Houston property tax rate? The MUD, or Municipal Utility District, your home falls under.

Newer master-planned communities like Bridgeland, Towne Lake, and Elyson often have higher tax rates (sometimes above 3.5%) because MUDs help fund infrastructure like water, drainage, and roads during development.

Older, established neighborhoods — where those bonds have been paid off — tend to have lower property taxes.

So, if you’re shopping in Cypress, Katy, or Tomball, your leading luxury agent in Cypress (👋 that’s me!) can help you compare MUD rates and estimate your all-in monthly costs before you make an offer.

🧾 Can You Lower Your Houston Property Taxes?

Yes — in some cases!

You can apply for homestead exemptions, which reduce the taxable value of your home and lower your annual bill. Other exemptions may apply for:

• Seniors over 65

• Veterans and disabled homeowners

• Agricultural or open-space land

Your 5-star real estate agent in Houston can connect you with local tax professionals who specialize in property exemptions and appeals.

📆 When Are Property Taxes Due in Houston?

Property taxes are assessed each January and typically due by January 31 of the following year. Most homeowners pay through an escrow account managed by their mortgage lender, so payments are automatically included in your monthly mortgage bill.

If you’re paying directly, mark your calendar — late payments can accrue penalties quickly.

🧭 The Bottom Line

Property taxes in Houston and Cypress, TX may be higher than the national average, but the trade-off is no state income tax and access to top-tier amenities, schools, and infrastructure.

Whether you’re buying your first home, upgrading, or relocating, having a knowledgeable Realtor in Houston ensures you understand your full costs before you fall in love with a property.

As a number one real estate agent in Cypress, TX and trusted relocation specialist in Houston, I help my clients break down tax estimates, compare neighborhoods, and find the perfect balance between lifestyle and affordability.

Written by Gabrielle Strout, Compass Real Estate
Your award-winning Realtor in Houston, leading luxury agent in Cypress, and trusted expert for all things relocation and real estate in Greater Houston.