School district taxes are the portion of your property tax bill that funds local public schools. In most Texas communities, school taxes represent 50-60% of your total property tax bill—making them the single largest component of what you pay.
School districts set their own tax rates (within state limits) and receive their portion of property tax revenue directly. The quality and funding level of schools significantly affects property values, creating a connection between what you pay and what your home is worth.
Understanding school district taxes matters because they're where the biggest exemptions apply—the $100,000 homestead exemption and the over-65 tax ceiling only apply to school district taxes.
Since school taxes are your biggest bill component, they're also where you save the most when you protest or claim exemptions.
Maximum savings potential:
• $100K homestead exemption at 1.2% rate = $1,200/year
• Over-65 ceiling can save thousands as values rise
• Successful value protest reduces school taxes most
What you can't change:
• School tax rates (set by district/voters)
• Which district you're in (based on location)
What you CAN change:
• Your assessed value (through protests)
• Exemptions claimed (through applications)
Focus your energy on reducing value and claiming exemptions—that's where your control is.
School district taxes breakdown:
Tax bill example:
• School district: $5,400 (54%)
• County: $1,800 (18%)
• City: $1,500 (15%)
• Special districts: $1,300 (13%)
• Total: $10,000
School tax rate components:
• Maintenance & Operations (M&O): Funds daily operations
• Interest & Sinking (I&S): Pays for bonds/debt
• Combined rate: Often $1.00-$1.50 per $100 of value
Exemptions that apply to schools:
• $100,000 homestead exemption (mandatory)
• Over-65 additional $10,000
• Over-65 tax ceiling (frozen dollar amount)
• Disabled person additional $10,000
Schools are expensive to operate—teacher salaries, facilities, transportation, programs. Texas relies heavily on local property taxes for school funding (despite state supplements), making school districts the largest taxing entity for most homeowners.
No. Property taxes fund public services regardless of personal use. Everyone pays school taxes whether they have children in school or not. However, over-65 homeowners get special relief through the tax ceiling that limits school tax increases.
Yes, but rarely significantly. Rates can drop slightly due to increased property values in the district (same revenue from lower rate) or state funding changes. Major rate decreases require voter approval of reduced spending, which is uncommon.