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Updated 2025 Tax Year

Gray County
Property Tax Guide

Everything you need to know about property taxes in Gray County, TX. Rates, due dates, exemptions, and how it affects your monthly payment.

10 Official Sources
8 min read
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Quick Facts
Tax Rate
Base county rate 0.589848%, total effective rate varies 1.8-2.5% depending on school district and municipal taxes
1st Due
Jan 31
Exemptions
5+ Available
Section 1

How Property Tax Works

Gray County, Texas operates under the state's property tax system to fund essential local services including schools, county operations, emergency services, and infrastructure maintenance. Property taxes are the primary revenue source for these services, with tax rates varying by location within the county due to different combinations of taxing entities such as school districts, municipalities, and special districts.

The effective property tax rate in Gray County varies depending on your specific location and the taxing entities that serve your property. For the 2025 tax year, the base county rate is approximately 0.589848 per $100 of assessed value, but your total rate will be higher when combined with school district taxes, municipal taxes (if applicable), and any special district assessments. Property owners should expect total effective rates typically ranging from 1.5% to 2.2% of assessed value, depending on their specific taxing district combination.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100)Description
Gray County0.589848County operations, roads, law enforcement, courts
School DistrictsVaries by districtLocal school funding (varies by ISD)
MunicipalVaries by cityCity services (if within city limits)
Special DistrictsVariesHospital districts, water districts, other special purposes

Rates shown are for FY 2025-2026 tax year. The county adopted the no-new-revenue rate of 0.589848 per $100 of assessed value. Your total tax rate depends on which school district, municipality, and special taxing districts serve your property location. Contact the Gray County Appraisal District for your specific rate combination.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Gray County, property taxes are due in two installments:

First Installment
Jan 31
Delinquent after Dec 10
Pro tip: If you pay through mortgage escrow, your lender splits these payments across your monthly mortgage. If you pay directly, set calendar reminders to avoid late penalties.
Section 4

Supplemental Tax Bills

Supplemental tax assessments in Gray County occur when there are changes to property ownership, new construction, or improvements made after the January 1 assessment date. These supplemental bills represent the additional taxes owed for the current tax year based on the increased assessed value.

For example, if you complete a $50,000 home addition in June, and your total tax rate is 2.0%, you would receive a supplemental bill for approximately $1,000 ($50,000 × 0.02) prorated for the remaining months of the tax year. Supplemental taxes are due within 30 days of the bill date and become delinquent if not paid by the specified due date.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Less: Homestead Exemption: $100,000 (school district portion)
  • Net Taxable Value: ~$280,000 (varies by district)
  • Annual Tax (at 2.0% effective rate): $5,600
  • Monthly Escrow: $467

Example 2: $600,000 Home

  • Market Value: $600,000
  • Less: Homestead Exemption: $100,000 (school district portion)
  • Net Taxable Value: ~$580,000 (varies by district)
  • Annual Tax (at 2.0% effective rate): $11,600
  • Monthly Escrow: $967

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Less: Homestead Exemption: $100,000 (school district portion)
  • Net Taxable Value: ~$980,000 (varies by district)
  • Annual Tax (at 2.0% effective rate): $19,600
  • Monthly Escrow: $1,633

Note: Homestead exemptions require application and are not automatic. Rates vary by specific taxing district combination.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Gray County require property tax escrow accounts to ensure timely payment of property taxes. Your lender collects monthly payments equal to 1/12 of your annual tax bill plus a cushion amount. Since Gray County property taxes are due January 31st, lenders typically pay your taxes in January from the escrow account.

Lenders must provide annual escrow statements showing payments made on your behalf and may adjust your monthly escrow amount based on actual tax bills received. If you pay off your mortgage or choose to eliminate escrow (where permitted), you become directly responsible for paying the Gray County Tax Assessor-Collector by the January 31st deadline to avoid penalties and interest charges.

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Section 6

Frequently Asked Questions

Q: When are Gray County property taxes due for the 2025 tax year? A: Property taxes are due by January 31, 2025. Taxes become delinquent on February 1st with penalties and interest applied to unpaid amounts.

Q: What homestead exemptions are available and how do I apply? A: The primary homestead exemption is $100,000 off the school district portion of taxes for your primary residence. You must apply with the Gray County Appraisal District by April 30th of the tax year. The homestead also caps annual assessment increases at 10%.

Q: Are there other tax exemptions available? A: Yes, including exemptions for seniors 65+, disabled persons, veterans, and agricultural/timber land use. All exemptions require separate applications with specific deadlines, typically April 30th.

Q: How often are properties reassessed? A: Properties are assessed annually as of January 1st. However, homestead properties are protected by a 10% annual assessment increase cap, regardless of market value changes.

Q: What are the penalties for late payment? A: Delinquent taxes incur penalties starting February 1st, plus interest charges. Penalty rates increase over time, and properties can eventually face tax foreclosure proceedings.

Q: Can I pay my taxes online? A: Contact the Gray County Tax Assessor-Collector's office for current online payment options and accepted payment methods.

Q: How do I appeal my property assessment? A: File a protest with the Gray County Appraisal Review Board by May 15th (or within 30 days of receiving your notice). Protests can be filed online or in person.

Q: Do special districts add to my tax bill? A: Yes, depending on your location, you may pay additional taxes for hospital districts, municipal utility districts, or other special purpose districts that provide services to your area.

Verified Sources

Backed by 10 Official Government Sources

Every fact in this guide is sourced from official county, state, and federal documents.

01
County
Adopted FY 2025 Budget - Gray Countyco.gray.tx.us
02
Tax Doc
NOTICE OF PUBLIC HEARING ON TAX INCREASEnewtools.cira.state.tx.us
03
County
County Rates and Levies (XLSX)comptroller.texas.gov
04
Tax Doc
96-1717 Handbook of Texas Property Tax Rulescomptroller.texas.gov
05
Gray - 090 - Texas Comptrollercomptroller.texas.gov
06
Tax Doc
Property Tax Today - Texas Comptrollercomptroller.texas.gov
07
Residence Homestead Exemption Affidavits - Texas Comptrollercomptroller.texas.gov
08
2024 ISD Summary Worksheet - Texas Comptroller - Texas.govcomptroller.texas.gov
09
Tax Doc
Texas Property Tax Exemptionscomptroller.texas.gov
10
Tax Doc
Paying Your Taxes - Texas Comptrollercomptroller.texas.gov
All sources verified as of 2025 Tax Year

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