Last updated: July 2026 — reflects current published tax rates and assessment data.
Most California buyers moving to Texas understand the big picture: no state income tax, higher property tax rates. What they do not understand — until they see their first Texas tax bill — is how different the line items look. The money does not flow to the same places. The calculation method is not the same. And the way your bill changes year over year follows an entirely different trajectory.
This article walks through the actual line items on a California property tax bill and a Texas property tax bill, using real homes at representative price points. The goal is not to tell you which state has better taxes. It is to show you exactly what you are paying for in each state, so you can budget with clear numbers instead of general impressions [1][5][6].
The California Tax Bill: Line by Line
Let us use a $1,200,000 home in Santa Clara County — a common starting point for Bay Area buyers relocating to the Hill Country. California property taxes are calculated on the assessed value, which under Proposition 13 is locked in at purchase price and increases no more than 2% per year [11]. On a home bought recently for $1,200,000, the assessed value is $1,200,000.
Every line on your California tax bill represents a specific taxing authority — a school district, county, city, or special district — each with its own voter-approved rate. Here is what a typical bill looks like [5][6]:
California Tax Bill — $1,200,000 Home, Santa Clara County
| Line Item | Rate per $100 | Annual Cost |
|---|---|---|
| Prop 13 base rate (1%) | $1.0000 | $12,000 |
| School district bond | $0.1200 | $1,440 |
| County operations | $0.0680 | $816 |
| City operations | $0.0410 | $492 |
| Flood control | $0.0090 | $108 |
| Public library | $0.0050 | $60 |
| Community college | $0.0320 | $384 |
| Vector control district | $0.0020 | $24 |
| Mello-Roos / CFD assessment | $0.1800 | $2,160 |
| Total annual tax | 1.46% | $17,484 |
That $17,484 annual bill is what you pay if your home is in a Mello-Roos district — which is common for homes built after 1990 in Santa Clara County. Without Mello-Roos, the effective rate drops to roughly 1.1%, bringing the annual bill closer to $15,324 [5][7].
The key structural feature of this bill is the Prop 13 lock. If you bought this home five years ago for $1,056,000, your assessed value would be approximately $1,165,909 — not the current $1,200,000 market value. Your tax bill would be proportionally lower, and it would grow by no more than 2% per year going forward. This is the structural advantage California buyers carry with them, and it is the single biggest reason the "Texas rates are higher" headline is only half the story [11].
The Texas Tax Bill: Line by Line
Now let us look at a $550,000 home in Kendall County (Boerne ISD). Texas does not have a locked-in assessed value. The county appraisal district appraises your property at or near current market value at least once every three years — often annually for homestead properties. Your tax bill is calculated on the taxable value, which is the appraised value after exemptions [3][8].
Here is the line-by-line breakdown for a primary residence with the homestead exemption filed [1][2][8]:
Texas Tax Bill — $550,000 Home, Kendall County / Boerne ISD
| Line Item | Taxable Value | Rate per $100 | Annual Cost |
|---|---|---|---|
| Boerne ISD — M&O | $410,000 | $0.7248 | $2,972 |
| Boerne ISD — Debt service (I&S) | $410,000 | $0.3500 | $1,435 |
| Kendall County operations | $440,000 | $0.3770 | $1,659 |
| County road district | $550,000 | $0.0500 | $275 |
| Emergency services district | $550,000 | $0.1000 | $550 |
| Total annual tax (after exemptions) | 1.60%* | $6,890 |
*Effective rate after homestead exemptions applied to the school and county lines. The combined pre-exemption rate is 1.60%.
The most important thing to notice: the school district portion — Boerne ISD M&O plus debt service — is the largest single component, accounting for roughly 60% of the total bill. The $140,000 homestead exemption reduces the school district taxable value from $550,000 to $410,000, which saves approximately $1,505 per year on the school lines alone [8][9].
Note that the county portion uses a smaller optional exemption (20% of appraised value = $110,000), while the road district and emergency services district apply their rates to the full appraised value — they offer no homestead exemption on top of the state minimum. This is common for special districts in Texas [8].
Five Structural Differences You Need to Understand
Assessment Method: Purchase Price Lock vs. Market Value
California locks your assessed value at the purchase price and caps annual increases at 2% under Prop 13 [11]. Texas appraises your property at current market value — and while the homestead cap limits annual increases to 10%, your starting point is the CAD's independent appraisal, not a guaranteed low base. On a $1,200,000 California home you might be paying taxes on a $936,000 assessed value. On a $550,000 Texas home, you are paying taxes on $550,000 from day one.
Mello-Roos vs. Texas Special Districts
California's Mello-Roos (Community Facilities Districts) add 0.25% to 1.0%+ on newer homes, funding infrastructure like roads, schools, and parks [7]. Texas has the equivalent in Municipal Utility Districts (MUDs), Public Improvement Districts (PIDs), and Water Control and Improvement Districts. In the Hill Country, new construction frequently carries a MUD or PID assessment that can add $100 to $300+ per month to your tax bill. The structure is similar, but Texas special districts often carry higher rates because they are not capped by Prop 13-style protections [3][5].
Exemptions: What the $140,000 Actually Applies To
The Texas $140,000 homestead exemption — increased from $100,000 after voters approved Proposition 13 in November 2025 — applies only to the school district portion of your taxes [8]. Counties and cities may offer optional exemptions of up to 20% (with a mandatory minimum of $5,000). Many special districts offer no exemption at all. In contrast, California's Prop 13 benefit applies to every taxing entity on your bill — the entire assessed value is locked, not just a portion [11].
Annual Growth: 2% Cap vs. 10% Cap
California's Prop 13 limits annual assessment increases to 2%, no matter how fast your neighborhood appreciates [11]. Texas caps homestead increases at 10% per year [10]. Over a decade in a rising market, the gap compounds dramatically. A California homeowner who bought for $1,200,000 in 2016 might be paying taxes on a $984,000 assessed value today. A Texas homeowner who bought for $550,000 in 2016 could be paying on a value close to $550,000 — because the 10% cap allowed the assessed value to track market appreciation much more closely.
Protest Rights: Routine in Texas, Rare in California
California property owners almost never protest their assessed value because Prop 13 already gives them a favorable locked-in number. In Texas, protesting your appraisal is standard practice — about 40% to 60% of property owners in major counties file a protest annually [9]. You file by May 15, attend an informal hearing, and can reduce your appraised value if it exceeds market value. Many homeowners hire tax consultants who work on a percentage of the savings. This is a meaningful tool that does not exist in the California system, and it can reduce your effective tax rate by 5% to 15%.
Three Texas Counties, One Home Value: What Changes
The same $550,000 home produces different tax bills depending on which county and school district it sits in. Here is the actual line-by-line comparison across the three Hill Country counties where California buyers purchase most frequently [1][3][4]:
| Line Item | Kendall / Boerne ISD | Bexar / NISD | Comal / Comal ISD |
|---|---|---|---|
| School M&O | $2,972 | $2,822 | $2,972 |
| School debt (I&S) | $1,435 | $1,230 | $1,435 |
| County operations | $1,659 | $1,216 | $1,342 |
| Road district | $275 | $220 | $165 |
| Emergency services | $550 | $605 | $440 |
| Total annual tax | $6,890 | $6,092 | $6,354 |
| Effective rate (after exemptions) | 1.25% | 1.11% | 1.16% |
The Spread Is Meaningful
On the same $550,000 home, the difference between Kendall County and Comal County is $537 per year. That is not a rounding error — it is a $100+/month difference driven entirely by which taxing entities overlap your property. Before you make an offer, your agent should pull the exact tax rate breakdown for that specific parcel, not rely on county-wide averages.
The 10-Year Trajectory: Where the Real Gap Emerges
The year-one comparison tells part of the story. The real divergence shows up over time. California's 2% annual cap keeps your bill growing slowly, predictably. Texas's 10% cap allows much faster growth — especially in a market like the Hill Country where 5–8% annual appreciation is common [10][11].
Here is what the next decade looks like for a $1,200,000 California home (at Prop 13's 2% cap) versus a $550,000 Texas home (at a conservative 5% annual appraisal increase, well within the 10% cap):
California — $1,200,000 Home
$17,484/year
2% annual growth (Prop 13 cap)
Texas — $550,000 Home
$6,890/year
5% annual growth (conservative)
Over 10 years, the California homeowner pays approximately $191,445 in property tax on a $1,200,000 home. The Texas homeowner pays approximately $86,668 on a $550,000 home. But remember — the California home costs $650,000 more to purchase, the California homeowner pays California state income tax (typically $14,000–$20,000+ per year for a dual-income household), and the Texas homeowner has the ability to protest and potentially reduce the appraised value annually [9][11].
The raw property tax comparison favors California. The total financial picture — purchase price, income tax, property tax, insurance, and cost of living — still heavily favors Texas for most relocating households. But you need to know the property tax line in the budget, because it is real and it grows faster than what you are accustomed to in California.
What to Do With This Information
Pull the Exact Tax Rate Before You Make an Offer
Do not rely on county-wide averages. Ask your agent to pull the complete taxing entity breakdown for the specific parcel you are considering. The Texas Comptroller publishes rates at Texas.gov/propertytaxes, and each county appraisal district has an online search tool. A home in Boerne ISD will carry a different rate than one in Northside ISD — even if both are in the same county [1][3].
Factor in Special Districts on New Construction
If you are looking at new construction in the Hill Country, ask whether the property is in a MUD, PID, or WCID. These special districts can add $100 to $400+ per month on top of the base tax rate. Some builders advertise lower base prices without disclosing the special district assessment — the total monthly cost may be higher than a comparable resale home without a special district [3][5].
File Your Homestead Exemption Immediately
The deadline is April 30 of the year after your purchase. Filing early saves you from paying the full unexempted rate for months. The exemption is not retroactive to the full year if you file late. This is a simple form that saves $3,000 to $5,000+ per year depending on your school district [8].
Protest Every Year
Texas gives you the legal right to challenge your appraised value annually. If the CAD appraises your home at $570,000 and comparable sales support $545,000, you can argue for a reduction. Even a $20,000 reduction in appraised value saves $300 to $500 per year depending on your rate. Over a decade, consistent protesting can save thousands [9].
Run the Full Budget, Not Just the Property Tax Line
The property tax comparison alone favors California. But property tax is one component of a total financial picture that includes purchase price, mortgage payment, state income tax, insurance, utilities, and daily costs. For most California buyers relocating to the Hill Country, the total savings — even accounting for higher property taxes — remain substantial. The point of this article is not to discourage the move. It is to make sure you budget accurately for the one line item that surprises nearly every California transplant.
Frequently Asked Questions
These are the property tax questions I hear most from California buyers evaluating the Hill Country. Every property is different, but the structural patterns are consistent.
Why are Texas property tax rates so much higher than California's?
Texas has no state income tax, so property taxes are the primary funding mechanism for public schools, counties, cities, and special districts. California funds schools and services through a broad income tax base (rates up to 13.3%), which allows a lower property tax rate. Texas rates typically run 1.8% to 2.5%, compared to California's 1.1% to 1.3% on Prop 13-assessed values. The tradeoff is real, but so is the savings on income tax.
What is Mello-Roos, and does Texas have an equivalent?
Mello-Roos is a California special tax district (Community Facilities District) that finances infrastructure in new developments — roads, sewers, schools, parks. It adds 0.25% to 1.0%+ on top of base property taxes. Texas has an equivalent in the form of Municipal Utility Districts (MUDs), Public Improvement Districts (PIDs), and Water Control and Improvement Districts (WCIDs). These special districts layer additional levies onto your Texas tax bill, and they are common in Hill Country new construction.
Does the Texas homestead exemption apply to every line item on my tax bill?
No. The $140,000 mandatory homestead exemption applies only to the school district portion of your taxes. Counties, cities, and special districts can offer optional exemptions — typically 20% of appraised value — but the amount varies by entity. Some special districts offer no exemption at all. This is why the homestead exemption saves more on the school district line than on any other component.
Can I protest my Texas property tax appraisal every year?
Yes, and you should. Texas property owners have the legal right to protest their appraised value with the county appraisal district annually. About 40% to 60% of property owners in major Texas counties file a protest each year. The deadline is May 15 (or 30 days after your appraisal notice, whichever is later). You can hire a tax consultant who works on a percentage of your savings, or handle it yourself at an informal hearing. It is a routine practice, not a special circumstance.
What happens to my Texas property taxes when my home's value goes up?
For a primary residence with a homestead exemption, Texas caps annual appraisal increases at 10% per year (plus new improvements). If your home's market value increases 15% in a year, your assessed value can only go up 10%. Over time, your assessed value can drift significantly below market value if appreciation is strong. California's Prop 13 caps annual increases at 2%, which is stricter — but it also means California homeowners often pay taxes on an assessed value that is far below market value after many years of ownership.
Understanding the Tax Bill Is Step One. Planning for It Is Step Two.
Every California-to-Texas relocation starts with understanding what you are leaving and what you are entering. The property tax picture is more nuanced than any headline can capture — the rates are higher, but the exemptions, protest rights, and absence of income tax change the total equation significantly.
If you want to run the specific numbers for a property you are considering — the exact line items, the exemptions that apply, and the total monthly budget — I am happy to walk through it. A direct conversation with real numbers for your price point and timeline is worth more than any general article.
Written by
Bill Ross
Hill Country Homesteads Group, brokered by KW Boerne
Bill Ross is a Texas real estate agent with nearly four decades in high-tech sales and a network of 1,000+ California real estate agents for coordinated cross-state transactions. Recognized in USA Today and The Washington Post for his relocation expertise.
Related Guides
Texas Homestead Exemption Guide
How to file, how much you save, and the deadlines that matter for every new Texas homeowner.
Why California Buyers Underestimate Texas Property Taxes
An overview of why the "no income tax" headline doesn't tell the full story.
California Home Equity to Texas Wealth
The real math behind selling in California and buying in Texas — three real scenarios with actual numbers.
The Tax Bill Beneath the Tax Bill
MUDs, PIDs, ESDs, and other special districts that layer on top of your base property tax rate.
Sources
- Kendall County 2025 adopted tax rates and exemptions — Kendall County Appraisal District; Kendall County Tax Assessor-Collector. www.co.kendall.tx.us/306/Kendall-County
- Boerne ISD 2025 tax rate (M&O $0.7248, I&S $0.3500 per $100) — Texas Comptroller of Public Accounts; Boerne ISD. comptroller.texas.gov/taxes/property-tax/rates/
- Bexar County 2025 official tax rates by taxing entity — Bexar County Tax Assessor-Collector. www.bexar.org/4032/2025-Official-Tax-Rates-Exemptions
- Comal County and Comal ISD 2025 adopted rates — Comal County Appraisal District; Texas Comptroller. www.ownwell.com/blog/comal-county-property-tax
- Kendall County effective property tax rate Q4 2025 (2.5%) — Kendall County Times. kendallcountytimes.com/kendall-county-effective-property-tax-rate-in-q4-2025-was-higher-than-national-average/
- California property tax rates by county (LA, Orange, Santa Clara, San Diego) — Realpha; Calclogix; Abode Money (2025–2026). www.realpha.com/blog/california-property-tax
- Mello-Roos / Community Facilities Districts explained — California Streets and Highways Code §2500 et seq.. calclogix.com/library/california-property-tax-guide
- Texas homestead exemption ($140,000 base — Proposition 13, November 2025) — Texas Comptroller of Public Accounts; Ballotpedia. comptroller.texas.gov/taxes/property-tax/exemptions/
- Texas property tax protest rights and procedures — Texas Tax Code §41.44–41.67; Texas Comptroller. comptroller.texas.gov/taxes/property-tax/protests/
- Texas 10% appraisal cap for homesteads — Texas Tax Code §23.23. statutes.capitol.texas.gov/Docs/TX/htm/TX.23.htm
- California Prop 13 2% annual assessment increase cap — California Revenue and Taxation Code §62; Legislative Analyst's Office. lao.ca.gov/pages/vote/prop/prop/prop-13.aspx
Last reviewed: July 2026. Tax rates reflect 2025–2026 published data. Individual rates vary by property location; verify with your county appraisal district.