Property taxes in Bexar County are one of the more significant financial variables in any San Antonio real estate transaction, and they are something sellers encounter at closing whether they have been thinking about them or not. Texas has no state income tax, and the trade-off is a property tax burden that ranks among the highest in the country. Understanding how Bexar County property taxes work — how they are assessed, what the rates are, how they affect a sale, and what happens when they go unpaid — is practical knowledge for anyone selling a San Antonio home.
Property taxes in Bexar County are administered by the Bexar Appraisal District, commonly called BCAD. BCAD is responsible for appraising all real property in the county and certifying those appraisals to the taxing entities that levy taxes based on them. BCAD is a separate entity from the taxing entities themselves — it sets the values, but it does not set the rates.
BCAD appraises properties annually based on market value as of January 1st of each tax year. Texas law requires that appraisals reflect 100 percent of market value, though in practice BCAD appraisals sometimes lag behind rapidly rising markets and sometimes lead in declining ones. If you believe your BCAD appraisal is higher than your property's market value, you have the right to protest it before the Bexar County Appraisal Review Board. The protest deadline is typically May 15th or 30 days after you receive your notice of appraised value, whichever is later.
For homeowners with a homestead exemption — available on your primary residence — the annual increase in appraised value is capped at 10 percent regardless of how much market values have risen. This cap can create a significant gap between the BCAD appraised value and actual market value for long-term homeowners, which sellers sometimes discover when they receive a cash offer that seems high relative to their tax statement.
The total property tax rate on any given Bexar County property is a stack of rates from multiple taxing entities. Every property in San Antonio is subject to at least the City of San Antonio rate and the relevant Independent School District rate. Depending on location, additional levies from Bexar County, hospital districts, community college districts, flood control districts, and special purpose districts stack on top of those.
In 2024, total effective tax rates in San Antonio city limits generally ranged from approximately 2.0 to 2.8 percent of appraised value annually. On a property appraised at $250,000, that translates to roughly $5,000 to $7,000 per year in property taxes. Properties in incorporated municipalities within Bexar County — Alamo Heights, Converse, Live Oak, Schertz — have different rate structures that may be higher or lower depending on the specific entities serving that area.
Unincorporated Bexar County typically has lower total rates because city taxes do not apply, though this is partly offset by the fact that municipal services are not available either. Rural properties and agricultural land in the county's outer areas benefit from agricultural use appraisals that can dramatically reduce the taxable value.
Texas property taxes are assessed annually but billed and due in arrears. The 2024 tax year bill, for example, is issued in October 2024 and due by January 31, 2025. This timing creates a proration requirement at every real estate closing.
Tax proration divides the current year's tax liability between the seller and buyer based on the closing date. The seller is responsible for taxes from January 1st through the day before closing. The buyer is responsible from the closing date through December 31st. Since the exact tax bill for the current year is often not yet known at the time of closing, prorations are typically calculated based on the prior year's tax bill with a true-up provision if the actual amount differs.
On a $300,000 home with a 2.3 percent effective rate, the annual tax bill is approximately $6,900. Closing in July means the seller is credited with roughly half that amount — $3,450 — as a debit against their sale proceeds and a credit to the buyer to cover the taxes they will owe for the seller's portion of the year. This proration is handled entirely by the title company and is a standard part of every Texas closing.
Property tax liens in Texas are among the most powerful liens in existence. Under Texas Tax Code Section 32.01, property tax liens attach automatically on January 1st of each tax year and take priority over virtually all other liens including mortgages. This means a property tax lien will be paid before the mortgage lender in a sale regardless of when the mortgage was originated.
Any unpaid property taxes on a property must be paid at closing before the title company can issue clean title insurance and transfer ownership. The title search conducted by the title company includes a tax certificate showing the current status of taxes on the property. Outstanding taxes from prior years, penalty and interest that has accrued, and the current year's proration are all calculated and paid from the sale proceeds.
For properties that have accumulated multiple years of unpaid taxes, this can be a significant number. A property with three years of unpaid taxes plus penalty and interest could easily have $20,000 or more in tax obligations. This reduces net proceeds from the sale by that amount. If the accumulated taxes and other liens exceed the sale price, the transaction is effectively a short sale situation.
Direct buyers like Prime Equities purchase properties with back taxes regularly. The taxes are simply paid off at closing from the sale proceeds — we do not require the seller to resolve them beforehand. For sellers who cannot afford to pay back taxes out of pocket, this is an important practical point: you do not need cash to clear the tax lien before selling.
Several Texas property tax exemptions are relevant to sellers. The homestead exemption, available on your primary residence, reduces the appraised value for tax purposes by $100,000 for school district taxes and provides additional reductions for other taxing entities. Importantly, the homestead exemption also activates the 10 percent annual appraisal cap described earlier.
The over-65 exemption provides additional reductions and — critically — caps the school district tax bill at the amount it was in the year you turned 65. This tax freeze transfers to a surviving spouse who is at least 55 years old. For older homeowners selling a long-held property, understanding this exemption helps explain why their BCAD appraised value may be significantly lower than market value.
When a property sells, homestead exemptions are removed for the new owner unless they apply for their own exemption. Buyers need to apply for the homestead exemption themselves by April 30th of the year following purchase. This does not affect the seller directly but is often a question buyers ask.
If you are selling a property in San Antonio or elsewhere in Bexar County, Prime Equities can help you understand exactly what the tax situation looks like for your specific property and how it affects your net proceeds. We work with experienced local title companies who handle the tax research and proration accurately, and we buy properties with back taxes, deferred maintenance, and other complications regularly. Call us at (210) 740-3006 or fill out the form on our Sell My House Fast page.