Property taxes in DFW are high because Texas has no state income tax. Here's exactly where the money goes.
How property tax is calculated:
- Your property is appraised annually by your county appraisal district.
- Dallas County: Dallas Central Appraisal District (DCAD). Source: dallascad.org
- Tarrant County: Tarrant Appraisal District (TAD). Source: tad.org
- Collin County: Collin Central Appraisal District (CCAD). Source: collincad.org
- Denton County: Denton Central Appraisal District (DCAD). Source: dentoncad.com
Average effective rates (2026):
- Dallas County: ~2.1% of appraised value
- Tarrant County: ~2.2%
- Collin County: ~2.0%
- Denton County: ~2.0%
Where the money goes (example: Dallas homeowner, $400K home, ~$8,400/year):
- School district: ~55% ($4,620) — the biggest chunk by far
- City: ~18% ($1,512)
- County: ~12% ($1,008)
- Hospital district: ~8% ($672)
- Community college: ~5% ($420)
- Special districts: ~2% ($168)
Why it's so high:
- No state income tax means local property taxes fund everything
- Texas school funding relies heavily on local property taxes
- Rapid appreciation = higher appraisals = higher bills
Exemptions you should have:
- Homestead exemption: File immediately after buying. Saves $1,000+ per year. Source: your county appraisal district website.
- Over-65 exemption: Freezes school tax amount. Significant savings.
- Disabled veteran exemption: Partial to full exemption depending on disability rating.
Sources:
- County appraisal district websites
- Texas Comptroller's office: comptroller.texas.gov
- Tax rate data from each taxing entity
Are you filing your homestead exemption?