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Updated 2025 Tax Year

Matagorda County
Property Tax Guide

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

10 Official Sources
8 min read
Quick Facts
Tax Rate
Varies by location, typically 2.0-2.5% effective rate due to overlapping jurisdictions (county + school district + other entities)
1st Due
Jan 31
Exemptions
5+ Available
Section 1

How Property Tax Works

Matagorda County, Texas operates under the state's property tax system, which serves as the primary funding mechanism for essential local services including schools, county operations, emergency services, and infrastructure maintenance. Property taxes in Matagorda County are assessed annually based on the market value of real property as of January 1st, with the tax year running from January 1 to December 31. The county follows Texas state law requiring properties to be assessed at 100% of market value, though various exemptions and the homestead assessment cap can reduce the taxable value for qualifying property owners.

The effective tax rate in Matagorda County varies significantly by location within the county due to overlapping taxing jurisdictions including the county, school districts (such as Bay City ISD and Matagorda ISD), cities, and special districts. Total combined tax rates typically range from approximately 2.0% to 2.8% of assessed value, depending on which taxing districts apply to a specific property. Property owners should note that their actual tax rate depends on their precise location and the combination of local taxing entities that serve their area.

It's important to understand that most tax exemptions and credits are not automatic and require annual application by specified deadlines. The homestead exemption, while providing significant benefits, must be applied for and approved before it takes effect. Property owners are responsible for understanding which exemptions they qualify for and ensuring timely application to receive these benefits.

Section 2

What Makes Up Your Tax Bill

ComponentApproximate RateDescription
County General Fund0.45% - 0.55%County operations, roads, law enforcement, courts
School District1.20% - 1.40%Varies by district (Bay City ISD, Matagorda ISD, etc.)
Emergency Services District0.05% - 0.10%Fire protection and emergency medical services
Hospital District0.10% - 0.15%Local healthcare services (where applicable)
City Taxes0.30% - 0.60%Municipal services (varies by city, if incorporated area)
Special Districts0.05% - 0.20%Water, drainage, port authority (location dependent)
Total Combined Rate2.15% - 3.00%Varies significantly by location within county

Note: These rates reflect FY 2024-2025 levy year estimates. Actual rates vary considerably based on the specific combination of taxing districts that serve each property location. Properties in unincorporated areas will not have city taxes, while properties in different school districts will have different school tax rates. Contact the Matagorda County Appraisal District for exact rates applicable to your specific property location.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Matagorda 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 taxes in Matagorda County are additional property tax assessments that occur when there are changes to property ownership, value, or use during the tax year. The most common trigger for supplemental taxes is the completion of new construction or major improvements that increase a property's assessed value after the January 1st assessment date. When new construction is completed, the additional value is added to the tax roll and prorated for the remaining months of the tax year.

Supplemental taxes are calculated by determining the difference between the original assessed value and the new assessed value, then applying the applicable tax rate to this difference. The resulting tax is then prorated based on how many months remain in the tax year from the date the improvement was completed or the change occurred.

For example, if a property owner completes a $100,000 home addition in July, and their combined tax rate is 2.5%, they would owe a supplemental tax of approximately $1,250 ($100,000 × 2.5% × 6/12 months remaining in the year). This supplemental tax would be in addition to their original annual property tax bill and typically becomes due within 30 days of the supplemental assessment notice.

Example Calculation

Example 1: $300,000 Home with Homestead Exemption

  • Market Value: $300,000
  • School District Homestead Exemption: -$100,000
  • Taxable Value: $200,000
  • Combined Tax Rate (example): 2.40%
  • Annual Property Tax: $4,800
  • Monthly Escrow: $400

Example 2: $600,000 Home with Homestead and Over-65 Exemptions

  • Market Value: $600,000
  • School District Homestead Exemption: -$100,000
  • Additional Local Exemptions: -$10,000
  • Taxable Value: $490,000
  • Combined Tax Rate (example): 2.55%
  • Annual Property Tax: $12,495
  • Monthly Escrow: $1,041

Example 3: $1,000,000 Home with Maximum Exemptions

  • Market Value: $1,000,000
  • School District Homestead Exemption: -$100,000
  • Additional Local Exemptions: -$15,000
  • Taxable Value: $885,000
  • Combined Tax Rate (example): 2.65%
  • Annual Property Tax: $23,453
  • Monthly Escrow: $1,954

Note: These examples assume applications for exemptions have been filed and approved. Exemption amounts and tax rates vary by specific location within the county. The homestead exemption also provides a 10% annual cap on assessed value increases for tax purposes.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Matagorda County require borrowers to maintain an escrow account for property taxes, especially for loans with less than 20% down payment. The lender collects monthly escrow payments along with the mortgage payment, typically calculated as 1/12th of the annual property tax bill. These funds are held in a separate escrow account and used to pay property taxes when they become due.

Property tax payments in Matagorda County can be made in installments, with the first installment typically due around August 7th, and subsequent installments due February 1st, May 1st, and August 1st of the following year. However, many lenders prefer to pay the full annual amount when the first installment becomes due to avoid multiple payment processing and potential late fees. Property owners should verify their lender's escrow payment schedule and ensure adequate funds are maintained in the escrow account.

Homeowners have the right to request an escrow analysis from their lender annually, which shows how the escrow funds were used and whether adjustments to monthly payments are needed. If property values or tax rates change significantly, the monthly escrow payment may need to be adjusted. Property owners who pay off their mortgage or have sufficient equity may choose to opt out of escrow and pay property taxes directly, but should ensure they budget appropriately for these substantial periodic payments.

How HonestCasa Helps
  • Understand whether your escrow is set correctly
  • See how rising taxes will change your monthly payment
  • Plan ahead instead of being surprised by "shortage" letters
Section 6

Frequently Asked Questions

Q: When are property taxes due in Matagorda County for the current tax year? A: For FY 2024-2025, property taxes can be paid in installments: first installment due August 7, 2024; second installment due February 1, 2025; third installment due May 1, 2025; and fourth installment due August 1, 2025. Alternatively, the full annual amount can be paid with the first installment.

Q: What is the homestead exemption and do I need to apply for it? A: The homestead exemption provides up to $100,000 reduction in assessed value for school district taxes on your primary residence, plus it caps annual assessment increases at 10%. This exemption is NOT automatic - you must file an application with the Matagorda County Appraisal District, typically by April 30th of the tax year.

Q: What other tax exemptions are available and how do I apply? A: Additional exemptions may include over-65 exemptions, disability exemptions, veteran exemptions, and agricultural use exemptions. Each requires a separate application filed with the county appraisal district. Applications are generally due by April 30th, though some have different deadlines. Contact the appraisal district for specific forms and requirements.

Q: How often is my property reassessed and can I appeal the value? A: Properties are reassessed annually as of January 1st. If you disagree with your assessed value, you can file an appeal with the Appraisal Review Board, typically by May 31st or within 30 days of receiving your notice of appraised value, whichever is later.

Q: What happens if I pay my property taxes late? A: Late payments incur penalties and interest charges. Penalty rates start at 6% for payments 1-30 days late, increasing to 7% for 31-60 days late, and 8% for over 60 days late, plus additional interest charges that accrue monthly.

Q: Can I pay my property taxes online? A: Yes, most taxing entities in Matagorda County offer online payment options through their websites or third-party payment processors. There may be convenience fees for credit card payments. Check with the specific tax office for available payment methods.

Q: Why do I receive multiple tax bills? A: You may receive separate bills from different taxing entities (county, school district, city, special districts) depending on your property location. Some entities coordinate billing while others bill separately. The total amount owed is the sum of all applicable taxing entities.

Q: How do special district taxes affect my property tax bill? A: Special districts provide specific services like fire protection, water, drainage, or hospital services. If your property is located within a special district's boundaries, you'll pay additional taxes to fund those services. The rates and services vary by location within the county.

Q: What documentation do I need to apply for a homestead exemption? A: You'll typically need a completed homestead exemption application, proof of ownership (deed), driver's license or state ID showing the property as your address, and proof that January 1st was your primary residence date. Contact the Matagorda County Appraisal District for complete requirements and current forms.

Q: If I'm over 65, what additional tax benefits am I eligible for? A: Property owners 65 and older may qualify for additional local exemptions that reduce assessed value, and potentially a "tax ceiling" that freezes the total tax amount on their residence. These benefits require separate applications and have specific eligibility requirements beyond just age.

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