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Updated 2025 Tax Year

Mills County
Property Tax Guide

Everything you need to know about property taxes in Mills 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
Varies by location due to overlapping jurisdictions (county, school districts, cities, special districts)
1st Due
Jan 31
Exemptions
5+ Available
Section 1

How Property Tax Works

Mills 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 local government operations, with the county experiencing a 10.22% increase in property tax revenue for the current budget cycle, representing an additional $510,467 in collections.

The effective tax rate in Mills County varies by location within the county due to overlapping taxing jurisdictions including the county, school districts, cities, and special districts such as emergency services districts or water districts. Property owners may be subject to different combinations of these taxes depending on their specific location. The state of Texas does not impose a state-level property tax, making local property taxes the primary mechanism for funding local government services.

All property taxes in Mills County are administered through the local appraisal district, which determines property values and applies applicable exemptions, while individual taxing entities set their own tax rates within state-mandated limits.

Section 2

What Makes Up Your Tax Bill

ComponentRate (per $100)Description
County GeneralVariesMills County operations, roads, law enforcement
School DistrictVaries by districtLocal school funding, varies by specific district boundaries
City/MunicipalityVaries by cityMunicipal services (where applicable)
Emergency Services DistrictVaries by districtFire and emergency medical services
Other Special DistrictsVariesWater districts, hospital districts, or other special purpose entities

Note: Specific rates for FY 2025-2026 vary by taxing entity and property location. The combined rate typically ranges around the state average of 1.8% but varies significantly based on which taxing districts serve each property. Property owners should consult their tax statement for their specific combined rate, as rates differ throughout the county based on overlapping district boundaries.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Mills 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 Mills County are triggered when property undergoes significant changes during the tax year that affect its assessed value. The most common triggers include change of ownership (sale/transfer), completion of new construction, additions or major improvements, and removal of temporary exemptions.

When a supplemental assessment occurs, the appraisal district calculates the difference between the old assessed value and the new assessed value, then applies the current tax rate to determine the additional tax owed. This supplemental tax is prorated based on the number of months remaining in the tax year from the date of the change.

For example, if a property sells in July and the new assessment increases the taxable value from $200,000 to $300,000, the additional $100,000 in assessed value would be subject to the applicable tax rate for the remaining 6 months of the tax year (July through December), resulting in a supplemental bill for half of the annual tax on that $100,000 difference.

Example Calculation

Example 1: $300,000 Home

  • Market Value: $300,000
  • Homestead Exemption (School): -$100,000
  • Net Taxable Value: $200,000
  • Estimated Combined Rate: 1.80%
  • Annual Tax: $3,600
  • Monthly Escrow: $300

Example 2: $600,000 Home

  • Market Value: $600,000
  • Homestead Exemption (School): -$100,000
  • Net Taxable Value: $500,000
  • Estimated Combined Rate: 1.80%
  • Annual Tax: $9,000
  • Monthly Escrow: $750

Example 3: $1,000,000 Home

  • Market Value: $1,000,000
  • Homestead Exemption (School): -$100,000
  • Net Taxable Value: $900,000
  • Estimated Combined Rate: 1.80%
  • Annual Tax: $16,200
  • Monthly Escrow: $1,350

Note: These examples use estimated rates. Actual rates vary by specific location within Mills County. Homestead exemptions require application and approval. Additional exemptions may be available for seniors, veterans, or disabled persons but must be applied for separately.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Mills County require property tax escrow accounts for borrowers with less than 20% equity. The lender collects 1/12 of the estimated annual property tax bill each month along with the mortgage payment, holding these funds in an escrow account to pay taxes when due.

Property taxes in Texas are due January 31st each year, and lenders typically pay the full annual amount by this deadline. Lenders are required to provide annual escrow statements showing collections, payments, and any account shortages or surpluses. If property taxes increase significantly, lenders may adjust monthly escrow payments and may require additional payments to cover shortages.

Property owners should verify that their lender has paid taxes correctly and on time, as the property owner remains ultimately responsible for payment even when using escrow. The Mills County Tax Assessor-Collector's office can confirm payment status and provide verification of tax payments for mortgage or insurance purposes.

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 Mills County? A: Property taxes for the current fiscal year are due January 31st. Taxes become delinquent February 1st and begin accruing penalty and interest charges immediately.

Q: What homestead exemption is available and how do I apply? A: The school district homestead exemption provides up to $100,000 reduction in assessed value for your primary residence. You must apply with the Mills County Appraisal District. This exemption also caps annual assessment increases at 10% for homestead properties. Applications are not automatic and must be filed.

Q: What other tax credits or exemptions are available? A: Additional exemptions may include senior citizen (65+), disability, and veteran exemptions. Each requires separate application with specific documentation. Contact the Mills County Appraisal District for applications and eligibility requirements.

Q: How do I appeal my property assessment? A: You can file a written protest with the Appraisal Review Board by May 31st, or within 30 days of receiving your notice of appraised value if received after May 1st. Protests must be filed in writing with supporting documentation.

Q: Can I pay my property taxes online? A: Contact the Mills County Tax Assessor-Collector's office for current online payment options and accepted payment methods. Many Texas counties offer online payment systems for taxpayer convenience.

Q: What happens if I pay my taxes late? A: Taxes become delinquent February 1st and immediately begin accruing penalty and interest charges. Extended delinquency can result in tax lien foreclosure proceedings against the property.

Q: Why did my taxes increase this year? A: Tax increases can result from higher property values, increased tax rates by local taxing entities, or loss of exemptions. Mills County's current budget reflects a 10.22% increase in property tax revenue compared to the previous year.

Q: How do special district taxes work? A: Special districts (emergency services, water, hospital districts) can levy additional taxes based on your property's location. These appear as separate line items on your tax bill and fund specific services for residents within those district boundaries.

Verified Sources

Backed by 10 Official Government Sources

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

01
September 30, 2025 This proposed Budget will increase ...millscountytx.gov
02
County
County Rates and Levies (XLSX)comptroller.texas.gov
03
2025 ISD Summary Worksheet - Texas Comptrollercomptroller.texas.gov
04
General Information The Mills Central Appraisal District ...comptroller.texas.gov
05
Tax Doc
Paying Your Taxes - Texas Comptrollercomptroller.texas.gov
06
County
Mills County Clerk's Officemillscountytx.gov
07
Sample Ballotmillscountytx.gov
08
2025 Deduction Detail - Texas Comptrollercomptroller.texas.gov
09
Tax Doc
96-1717 Handbook of Texas Property Tax Rulescomptroller.texas.gov
10
07/28/25millscountytx.gov
All sources verified as of 2025 Tax Year

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