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Updated 2025 Tax Year

Terry County
Property Tax Guide

Everything you need to know about property taxes in Terry 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, typically 1.2-1.8% effective rate depending on school district and municipal boundaries
1st Due
Jan 31
Exemptions
5+ Available
Section 1

How Property Tax Works

Terry County, Texas operates under the state's property tax system, which serves as the primary funding mechanism for local government services, school districts, and special improvement districts. Property owners in Terry County face an effective tax rate environment that varies by location within the county due to different combinations of taxing entities including the county, school districts, cities, and various special districts.

The county follows Texas Property Tax Code provisions, including the 10% annual assessment increase cap for homestead properties and standardized exemption programs. Property taxes in Terry County fund essential services such as public education, county administration, road maintenance, and emergency services. Due to the county's rural nature and agricultural base, property owners may encounter different tax scenarios depending on whether their property is classified as residential, commercial, or agricultural use.

Section 2

What Makes Up Your Tax Bill

ComponentRate per $100Description
County General$0.798767Terry County operations, road maintenance, courthouse
School DistrictVaries by districtEducational services (rates vary by specific school district)
City/MunicipalVaries by cityMunicipal services where applicable
Special DistrictsVariesHospital districts, utility districts, other special assessments
Total Effective Rate~$0.80-$2.50Combined rate varies significantly by location

Rates shown are for FY 2025-2026. The county base rate of $0.798767 per $100 of assessed value applies countywide, while additional rates depend on your property's location within specific taxing jurisdictions. Rural properties may have fewer overlapping districts than properties within incorporated cities.

Section 3

When Are Property Taxes Due?

For the 2025/2026 tax year in Terry 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 Terry County are triggered by changes in property ownership, new construction, or significant improvements that increase a property's assessed value during the tax year. When these events occur, the county assessor calculates the difference between the new assessment and the previous assessment, then applies the current tax rate to determine additional taxes owed.

For example, if you purchase a home in March and the new assessment is $50,000 higher than the previous owner's assessment, you would owe supplemental taxes on that $50,000 difference prorated from the date of ownership change through the end of the tax year. New construction is assessed based on the completion date and occupancy status.

Example Calculation

$300,000 Property (with Homestead Exemption):

  • Market Value: $300,000
  • School District Homestead Exemption: -$100,000
  • Net Taxable Value: $200,000
  • Annual Tax (at $2.00/$100): $4,000
  • Monthly Escrow: ~$333

$600,000 Property (with Homestead Exemption):

  • Market Value: $600,000
  • School District Homestead Exemption: -$100,000
  • Net Taxable Value: $500,000
  • Annual Tax (at $2.00/$100): $10,000
  • Monthly Escrow: ~$833

$1,000,000 Property (with Homestead Exemption):

  • Market Value: $1,000,000
  • School District Homestead Exemption: -$100,000
  • Net Taxable Value: $900,000
  • Annual Tax (at $2.00/$100): $18,000
  • Monthly Escrow: ~$1,500

Examples use estimated combined rates. Homestead exemption requires application and applies only to primary residences. Actual rates vary by specific location within Terry County.

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Section 5

Escrow & Property Taxes

Most mortgage lenders in Terry County require property tax escrow accounts for loans with less than 20% down payment. Your lender collects monthly payments equal to 1/12 of your estimated annual property tax bill plus any required cushion (typically 2 months). The lender pays your taxes directly to Terry County when due.

Lenders typically conduct annual escrow analyses and may adjust your monthly payment based on actual tax bills and assessment changes. You'll receive an escrow statement showing payments made on your behalf and any surplus or shortage. If your property qualifies for the homestead exemption's 10% assessment cap, this can help stabilize your escrow payments over time, though lenders may still budget conservatively for potential increases.

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 Terry County property taxes due for FY 2025-2026? A: Property taxes are due by January 31st annually. This is a single payment deadline - there is no split payment option in Terry County.

Q: What homestead benefits are available and do I need to apply? A: The primary homestead exemption provides up to $100,000 reduction in assessed value for school district taxes on your primary residence. You MUST file an application with the Terry County Appraisal District - it's not automatic. The homestead also caps annual assessment increases at 10%.

Q: What other tax exemptions require applications? A: Senior citizen exemptions (age 65+), disability exemptions, veteran exemptions, and agricultural/timber exemptions all require separate applications filed with the appraisal district. None are automatic - you must apply to receive benefits.

Q: How often are properties reassessed in Terry County? A: Properties are assessed annually. However, homestead properties benefit from the 10% cap on assessment increases regardless of market value changes, provided you've filed for homestead exemption.

Q: What are the penalties for late property tax payments? A: Late payments incur penalties and interest charges that accumulate monthly. Contact the Terry County Tax Collector for current penalty rates and to avoid potential tax lien procedures.

Q: Can I pay my property taxes online? A: Check with the Terry County Tax Collector's office for current online payment options and accepted payment methods. Many Texas counties offer online payment systems.

Q: How do I appeal my property assessment? A: File a protest with the Terry County Appraisal Review Board typically by May 31st following the tax year. You can protest market value, unequal appraisal, or other assessment issues.

Q: Why do property tax rates vary within Terry County? A: Your total tax rate depends on which taxing entities serve your property location - county, school district, city (if applicable), and special districts. Rural properties typically have fewer overlapping districts than properties in incorporated areas.

Verified Sources

Backed by 10 Official Government Sources

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

01
County
County of Terry Fiscal Year 2025-2026 - Budget Cover Page ...co.terry.tx.us
02
013 PAGEnewtools.cira.state.tx.us
03
County
2025 Budget - Terry Countyco.terry.tx.us
04
Tax Doc
96-1717 Handbook of Texas Property Tax Rulescomptroller.texas.gov
05
County
FEE SCHEDULE COPY 2024-12-27.xlsx - Terry Countyco.terry.tx.us
06
County
FEE SCHEDULE - Terry Countyco.terry.tx.us
07
County
Terry County Appraisal Districtcomptroller.texas.gov
08
2024 ISD Summary Worksheet - Texas Comptroller - Texas.govcomptroller.texas.gov
09
Texas Legislature Online - Reportcapitol.state.tx.us
10
County
Untitled - Terry Countyco.terry.tx.us
All sources verified as of 2025 Tax Year

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