Dallas County property taxes are among the highest in the U.S., with a median property tax bill of $5,040. Moreover, property taxes have risen 32.7% in Dallas County since 2019. At the same time, Texas housing prices skyrocketed. Understanding how this tax works can help you reduce your Dallas County property tax liability.
How Property Taxes Are Calculated
Local entities budget annually to fund services like schools, utilities, and road maintenance. They figure the tax rate by dividing their budgets by the total value of all properties in the tax jurisdiction. The tax rate is expressed as cents on every $100 of appraised property value. The current median effective Dallas County property tax rate is 1.74%, which takes into account exemptions and other reductions.
Your tax bill is calculated by multiplying the local tax rate by your property's appraised value. For example, a Dallas County homeowner with a $500,000 appraisal would owe ~$8,700 in property taxes ($500,000 x 0.0174). The Dallas Central Appraisal District (DCAD) is responsible for setting home appraisal values, which are based on recent sales of similar homes in your neighborhood and improvements or upgrades to your property.
Important Deadlines for Property Tax Payments
January 1: Dallas Central Appraisal District sets property market values for the year based on recent sales of similar properties, residential improvements, and other factors.
April 15: Dallas County mails Notice of Appraised Value to property owners.
October 1: Texas property taxes are assessed for the tax year and are due by January 31 of the following year.
Due Dates for Payments
Pay your property taxes on or before January 31 of the year following the tax year in question to avoid paying interest or penalties. For example, 2025 tax year payments are due by January 31, 2026.
Unpaid Dallas County, Texas, property tax begins to accrue interest on February 1 and increases monthly.
Timeline for Protesting Property Taxes
A Dallas County property tax search reveals that residents face significant annual increases due to high home appraisals. Though there are ways to lower property taxes, homeowners often overpay or miss critical appeal deadlines. Knowing how and when to navigate the property tax protest process can lead to significant savings.
You can file a protest with the Dallas Central Appraisal District to lower your home's appraised value by May 15 (or 30 days after your appraisal notice is mailed, whichever is later).
However, if you miss the protest deadline, you forfeit your right to dispute your property's value until the following year!
Strategies for Reducing Property Tax Liability
Consider applying for Texas homestead exemptions to lower your property tax. In 2023, Dallas County increased the general homestead exemption on school district taxes from $40,000 to $100,000. This meant a homeowner with a property valued at $500,000 only paid taxes on $400,000 of the home's value with an exemption — a significant cost savings.
Currently, Senate Bill 4 (SB4) in the 89th Texas legislative session aims to increase the general homestead exemption to $140,000, providing further property tax relief.
Applying for Homestead Exemptions
The deadline to file an affidavit for homestead exemptions in Dallas County is April 30 of the current tax year. Exemptions received before March 15 appear on your Notice of Appraised Value. Otherwise, exemptions are posted when approved.
To claim the homestead exemption, you must show that you lived at the property as your primary residence as of January 1 and provide proof that you qualify for any other exemptions you're claiming.
Taking Advantage of Tax Deductions
Texans over age 65, those with disabilities, and veterans may qualify for additional property tax exemptions:
Over 65 or disabled: $10,000 from local school district taxes*
Over 65 or disabled: Minimum $3,000 from local taxing unit (when offered)
100% disabled veteran: 100% of property value
Disabled veteran with home donated by charitable organization: Exemption determined by service-connected disability rating
Surviving spouse of a U.S. Armed Services member killed in action: 100% of property value
Surviving spouse of a first responder killed in the line of duty: 100% of property value
*The disabled person must meet the Social Security Administration's standards for disability.
You can also retroactively apply for missed exemptions for up to two years. This requires more paperwork and time, but Ownwell can do it on your behalf.
Protesting Property Taxes
If your property appraisal is higher than you believe it should be, you have the right to appeal the valuation with the Dallas Central Appraisal District. Follow these steps:
File an informal protest with the DCAD before May 15.
Gather documentation, including comparable property values in your neighborhood. Look for homes of similar age and square footage with like features. Include information such as repair estimates or evidence of depreciation to support your claim.
If the appraisal board lowers your valuation to an acceptable amount during the informal review process, you're done and will receive a bill from your county or mortgage provider if you have a lien.
If you don't come to an agreement during the informal appeal process, request a formal hearing with the Appraisal Review Board (ARB). Attend and present the evidence you collected to show the true value of your property. Clearly communicate the reasons you believe the current property assessment is unfair.
If the ARB stands by the original appraisal or doesn't lower the appraisal value to your desired amount, you have the right to appeal the decision in district court or to enter into binding arbitration to resolve the dispute.
Understanding Your Property Tax Statement
When you receive your property tax statement, look it over for accuracy. It should include the following elements:
Property information: Your address, a legal description of the property, and the appraisal district in which it's located.
Market value: The appraised value of your property, which determines your overall tax liability. If this number is too high, it's important to correct it by filing a tax protest before the May 15 deadline.
Exemptions: Verify any exemptions for which you have applied and qualified.
Taxing units: A list of all taxing entities in your area, including school districts, municipalities, counties, and special districts. Each determines its own tax rate. Your total tax obligation is determined by multiplying each entity's tax rate by your appraisal amount and adding those numbers together.
Taxes owed: The total amount of taxes you owe.
Distribution: A breakdown of tax liability by taxing entities. The distribution shows you how much of your tax bill is being distributed to each.
Due date: The date taxes are due. If you miss the deadline for tax payment, interest and penalties can accrue.
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Impact of Rising Property Values on Tax Bills
With Texas housing prices up 42% over the past five years, home appraisals have also increased. Dallas ranks third in the country for the highest median property tax bill increase among the nation's most populous areas. The rise happened so quickly that it's been difficult for homeowners, seniors, and first-time homebuyers to keep up with their ballooning tax bills.
However, our Texas data study found that Dallas County residents had the greatest YoY market value difference between protestors and non-protestors in 2023 (5.36%) and 2024 (6.46%) among seven populous counties. This means that it pays to protest your taxes!
Legislative Changes Affecting Property Taxes in 2025
In February 2025, the Texas legislature proposed increasing the general homestead exemption amount from $100,000 to $140,000. Under this proposed law, exemptions for Texans over 65 would also jump from $110,000 to $150,000. The changes equate to a median annual savings of $486.57 for all qualifying Texas homeowners and $666.93 median savings for seniors in the state.
If passed in the House, Texans will still have to approve the proposition when they vote in November, but lawmakers hope to sign Senate Bill 4 into law. The increased exemption amounts would apply retroactively to 2025 tax bills.
Another legislative change affecting Dallas County property taxes is a 2023 mandatory five-year verification requirement for homestead exemptions.
Homeowners are now required to verify their homestead exemption status at least once every five years to keep it. County appraisal districts will send out verification notices, which property owners should respond to immediately. Failing to respond will result in a loss of the exemption, which will raise your property taxes.
Making Informed Decisions Regarding Property Taxes
With the recent changes and many deadlines associated with managing your Texas property taxes, consider hiring a professional tax reduction specialist to lower your bill.
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