Renters oftentimes do not know how much in property taxes they pay monthly or annually. This knowledge gap can invite negative societal effects, such as uninformed voting decisions.
Key points:
- Many renters are uninformed about their property tax burden.
- Some estimates suggest that as much as 20% of an individual’s rent is due to local property taxes.
- Renters’ knowledge gap may prompt them to vote against their interest by unknowingly raising their rent amount.
- More transparency, not less, is needed to support an informed electorate and good governance.
“Knowledge will forever govern ignorance: And a people who mean to be their own Governors, must arm themselves with the power which knowledge gives” – James Madison
Introduction
The republican form of government and a healthy free market require a well-informed public. Yet in Texas, renters very often lack access to critical information about property taxes, which has the potential to negatively affect election participation and outcomes.
Under current law, landlords are not required to disclose the exact amount of property taxes paid by their tenants. Instead, the tenant’s tax burden is often incorporated into the total rent amount. This can lead tenants to mistakenly attribute any increase in rent to factors within the landlord’s purview and unrelated to public policy or governance. However, changes in rent prices often result from changes in tax policy—especially property taxes—which are directly influenced by local policy matters, such as tax and bond elections and candidate elections.
In the absence of accurate and timely tax information, renters can participate in local elections without full knowledge of the likely fiscal consequences. After all, renters do not own their property, nor are they informed of their existing tax burden, so they may mistakenly assume that they are not affected by property taxes at all. Such a false perspective might induce a friendlier view of candidates and of policies that propose to increase the cost of government or involve redistributionist schemes.
Renters’ current position is a classic case of asymmetric public policy, in which tenants are disadvantaged informationally and expected to participate politically, whilst well-informed authorities propose potentially costly items with long-term effects.
As with most things, the asymmetry does not only impact the parties directly involved—i.e., landlords, tenants, and area governments—but may also impose financial burdens on migrants from different counties and states, as well as long-term residents and businesses within the same jurisdiction. Irrespective of economic position, every Texan should have some basic understanding of the size and direction of local property taxes.
Profiling the Property Tax in Texas
Texas’s effective property tax rate consistently ranks among the highest in the country, with some recent estimates for owner-occupied housing ranging between 1.245% (Jones, 2026) and 1.36% (Yushkov, 2025). For commercial properties in large Texas cities, the effective rate is estimated to range from 1.808% to 2.544% (DeBoer & Langley, 2025, p. 81). For certain apartment properties situated in large Texas cities, the effective rate is observed to be between 1.954% and 2.539% (DeBoer & Langley, 2025, p. 101).
Furthermore, according to the Texas Comptroller, property taxes are “the largest tax assessed in Texas,” with taxing units collecting $81.4 billion in 2023—representing 46% of total tax revenue (Texas Comptroller of Public Accounts, 2024, p. 5). By comparison, the next largest tax revenue source, the state sales tax, generated only $46.6 billion in 2023, or 26.3% of all tax revenue (p. 5).
Texas Renters
The cost of rent has become more favorable to renters due to an increasing supply of apartment units (Oney, 2025). Since 2023, the average asking price for rent has declined, and landlords have been offering more concessions (Oney, 2025).
However, the benefits that renters may experience from an increased supply are partially offset by rising property taxes. Consider that approximately 20% of every dollar of rent goes toward property taxes (Texas Apartment Association, 2024). This means that, in theory, the average individual’s rent could be 20% cheaper had it not been for local property taxes. To put this statistic into perspective, a monthly rent payment of $1,403—which is the median gross rent in Texas between 2020 and 2024—consists of approximately $281 in property tax payments, meaning that the cost of government exceeds $3,300 per year for the median renter (U.S. Census Bureau, 2024a).
High property taxes contributed to half of Texas renters being cost-burdened in 20241 (U.S. Census Bureau, 2023), a term used to define people who spend a minimum of 30% of their income on housing. By comparison, only 24% of owner-occupied households were cost-burdened the same year2 (U.S. Census Bureau, 2023). The high rates of cost-burdened renters have real and measurable repercussions. Take for instance that 75% of single renters with children and 65% of people 65 and older were cost-burdened in Dallas in 2023 (Child Poverty Action Lab, 2026). Only two years later, an average of 77 evictions were filed per day in Dallas, totaling 27,995 evictions in a single year (City of Dallas, 2026, p. 46).
Bond, State, and Other Local Elections
In Texas, local governments issue bonds when they require funding for a project that is not already included in the budget (Bonura & Ebert, 2025). To repay the bonds, a portion of property taxes are collected in a specific fund known as “Interest & Sinking” (I&S). Local governments use I&S to pay for both the principal and interest of bond debt, illustrating a direct correlation between bond debt levels and property tax rates.
In 2025, 527 bonds were proposed, and 430 bonds were carried, an 82% passing rate. These 430 bonds contributed $63.71 billion of additional debt. If all 527 bonds passed—which is not an unrealistic probability given the low turnout rates for bond elections—then the additional debt would have increased by $75.47 billion (Texas Bond Review Board, 2026, p. 41). As of 2025, Texas local governments have racked up an impressive $368.30 billion in outstanding debt from issuing bonds, a 10.5% increase from 2024 and a 39% increase since 2020 (Texas Bond Review Board, 2026, p. iii).
An analysis by Texas 2036 (2025) found that renters comprised 26% of likely voters in Constitutional Amendment Elections, which is a low turnout election that takes place in odd-numbered, off-cycle years. Bond elections are also low turnout, which means that a small number of people are making decisions that impact affordability for the entire community. This underscores the importance that the electorate be fully informed about the impact of bond and property tax proposals.
State and Other Local Elections
Texas residents have the power to elect their local officials, and these local officials decide and approve property tax rates based on budget requirements within their jurisdiction. If a local body seeks to exceed voter-approved tax rates, state law requires an election to approve or reject the increased tax rates (Texas.gov, n.d.). This process gives voters the ability not only to select their local officials but also to provide checks and balances.
While property tax amounts are set and collected at the local level, state officials play a role as well. Playing more of the strategist rather than the tactician, the state sets the course for what local governments can and cannot do. For instance, not only does the state require elections when taxes exceed the voter approval rate, but it also sets the rate (Texas.gov, n.d.), which is typically 3.5% (Texas Tax Code § 26.04, 2023). Additionally, the state lists property tax exemptions (such as exemptions for seniors and veterans), sets legal framework for how tax rates are calculated, and determines how properties are appraised.
Renters have a say in every one of these elections. It is best to ensure that they are equipped with the knowledge that is needed to make informed decisions both for their own self-interest and for the community at large.
Consequences to Third Parties
Renter mobility can influence costs for new and long-term residents, regardless of their opinions or participation in local elections. Since 2015, between 9 and 10% of Texas renters had migrated a year prior from a different county or state (U.S. Census Bureau, 2024b). People living in a renter-occupied unit are three times as likely to have migrated across county or state lines compared to people in an owner-occupied unit (U.S. Census Bureau, 2024b) (see Table 1).
Table 1
Annual Migration Trends (2015-2024)
Note: Data from U.S. Census Bureau (2015-2024), “Geographical Mobility in the Past Year by Tenure for Current Residence in the United States,” American Community Survey 1-Year Estimates. Retrieved from https://data.census.gov/table/ACSDT1Y2024.B07013?q=B07013:+Geographical+Mobility+in+the+Past+Year+by+Tenure+for+Current+Residence+in+the+United+States and author’s calculations
These findings imply that between 9 and 10% of renters could vote in favor of issuing bond debt while dodging the increased taxation through migration. In this social arrangement, new and long-term residents play the role of the scapegoat, bearing the additional costs imposed by different parties. This by no means indicates improper intentions on behalf of the renters. Rather, these findings illustrate both the internalities and externalities of the asymmetric information between landlords and renters.
Policy Recommendation
Renters may not know it, but they pay a substantial amount in local property taxes. In fact, some estimates suggest that as much as 20% of the average rent payment is on account of property taxes.
This is the type of information that renters ought to know, especially prior to participating in public elections. Without it, renters may have incomplete information with which to make decisions about bonds, taxes, and candidates.
In light of this concern, the 90th Texas Legislature should enact legislation ensuring that renters have timely and accurate information about their property tax circumstances. This detail should be specific to the renter’s address, provide a snapshot of the monthly or annual payment, and be provided with regularity.
If structured properly, there are several potential benefits to be gained, including:
- Increased Tenant Awareness: Tenants will have a clearer understanding of how their rent payments are impacted by the property taxes levied on their residences. This transparency can empower tenants to better comprehend the cost of housing and the impact of public policy.
- Accountability for Governments: The disclosure mechanism will likely foster increased accountability since it would require governments to make their tax burden more widely known, ensuring they are transparent about key cost factors.
- Informed Decision-Making: For prospective tenants, this information could be valuable in making informed decisions about rental properties, particularly when comparing units in different complexes or different rent structures. It would also allow for assessments and comparisons as well as incentive rate negotiations if property taxes decrease.
References
Bonura, J., & Ebert, G. (2025). May 2025 bond election report. Texas Public Policy Foundation. https:/www.texaspolicy.com/wp-content/uploads/2025/08/2025-08-TPP-May-2025-Bond-Election-Report-Bonura-Ebert.pdf
Child Poverty Action Lab. (2026). 2025 Rental Housing Needs Assessment (Report). Child Poverty Action Lab. https:/childpovertyactionlab.imgix.net/CPAL_Rental-Housing-Needs-Assessment_2025-Report.pdf
City of Dallas. (2026). State of housing: Dallas, Texas. https://dallascityhall.com/government/citymanager/Documents/Council%20Materials/State%20of%20Housing%20%E2%80%93%20Dallas,%20Texas.pdf
DeBoer, B., & Langley, A. (2025). 50-state property tax comparison study. Lincoln Institute of Land Policy. Minnesota Center for Fiscal Excellence. https://go.lincolninst.edu/50-state-property-tax-comparison-for-2024.pdf
Fritts, J. (2026, March 16). Property taxes by state and county, 2026. Tax Foundation. https://taxfoundation.org/data/all/state/property-taxes-by-state-county/
Jones, J. (2026, February 9). Where are U.S. property taxes highest and lowest? A state, county, and city analysis. Construction Coverage. https://constructioncoverage.com/research/average-property-tax-by-state-county-city
Oney, D. (2025, May 21). Commercial | Spring 2025: Multifamily supply and demand. Texas Real Estate Research Center. https://trerc.tamu.edu/article/commercial-spring-2025/
Texas Apartment Association. (2024, September 3). Senate Finance written testimony (Signed testimony). https://www.taa.org/wp-content/uploads/2024/12/09-04-24-senate-finance-written-testimony-signed.pdf
Texas Bond Review Board. (2026, January). 2025 Local government annual report: Fiscal year ended August 31, 2025 (p. iii). https://www.brb.texas.gov/wp-content/uploads/2026/02/2025LocalARFinal.pdf
Texas Comptroller of Public Accounts. (2024). Biennial property tax report. https://www.texaspolicy.com/wp-content/uploads/2026/06/Texas-Comptroller-Biennial-Property-Tax-Report.pdf
Texas.gov. (n.d.). Property tax transparency in Texas. Retrieved March 18, 2026, from https://www.texas.gov/living-in-texas/property-tax-transparency/
U.S. Census Bureau. (n.d.). QuickFacts: Texas. United States Census Bureau. https://www.census.gov/quickfacts/fact/table/TX/HSG650223
U.S. Census Bureau. (2024). Financial characteristics (Table ACSST1Y2024.S2503) [Data set]. American Community Survey 1-Year Estimates Subject Tables. Retrieved May 18, 2026, from https://data.census.gov/table/ACSST1Y2024.S2503?g=040XX00US48
Wat, Jordan. (2025, October 15). When only a few million vote: Constitutional amendment elections. Texas 2036. https://texas2036.org/posts/when-only-a-few-million-vote-constitutional-amendment-elections/