How Property Tax Works
Dallas County operates under Texas's property tax system, where property taxes serve as the primary funding mechanism for local government services, school districts, and special districts. Property owners in Dallas County pay taxes to multiple entities, including the county, local municipalities, school districts, and various special districts such as community colleges and hospital districts. The Dallas Central Appraisal District (DCAD) assesses property values annually, with a 10% annual assessment cap for homestead properties to provide stability for primary residence owners.
The effective tax rate in Dallas County typically ranges from 2.0% to 2.8% of assessed value, depending on the specific taxing entities that serve your property location. This rate varies significantly based on which city, school district, and special districts your property falls within. For example, properties within Dallas city limits face different rates than those in Rowlett or other municipalities. Texas law provides meaningful relief through homestead exemptions, including a substantial $100,000 school district exemption for primary residences, which can significantly reduce your annual tax burden.