Renters in Texas pay approximately 20% of their monthly rent toward property taxes without knowing it, according to a new report from the Texas Public Policy Foundation. The report argues this knowledge gap leads to uninformed voting decisions on local tax and bond measures that directly affect housing costs. The authors call for state legislation requiring landlords to disclose the exact property tax burden passed on to tenants, allowing renters to understand how public policy shapes their rent.
For a tenant paying $1,253 per month—about $150 less than Texas's median gross rent—approximately $251 goes toward property taxes each month, totaling more than $3,000 annually, the report calculates. Texas's effective property tax rates rank among the nation's highest, ranging from 1.245% to 1.40% for owner-occupied homes and between 1.954% and 2.539% for apartment properties in large cities. Property taxes generated $81.4 billion in 2023, representing 46% of all state tax revenue and far exceeding the $46.6 billion collected from sales tax. Nearly half of Texas renters were cost-burdened in 2024, spending at least 30% of their income on housing, compared to just 24% of homeowners. In Dallas, 75% of single renters with children and 65% of renters age 65 and older were cost-burdened in 2023, and the city saw an average of 77 evictions filed per day in 2025.
The report finds that renters often lack access to critical information about property taxes, which "has the potential to negatively affect election participation and outcomes." According to the authors, this information asymmetry means tenants "may mistakenly attribute any increase in rent to factors within the landlord's purview and unrelated to public policy or governance," when changes in rent prices often result from changes in tax policy. The report notes that in fiscal year 2025, Texas local governments proposed 527 bonds and voters approved 430 of them—an 82% passing rate—contributing $63.71 billion in additional debt that will be repaid through property taxes.
The mechanism behind rising rents tied to public spending works through local bond elections and tax rate approvals, the report explains. When local governments issue bonds to fund projects not already budgeted, they collect property taxes in an "Interest & Sinking" fund to repay both principal and interest, creating a direct link between bond debt and tax rates. As of 2025, Texas local governments carried $368.30 billion in outstanding bond debt, a 39% increase since 2020. Renters comprised just 26% of likely voters in low-turnout constitutional amendment elections, meaning a small group makes decisions affecting affordability for everyone. The report argues that without disclosure, renters may "unknowingly raise their rent amount" by supporting tax increases and bonds, falsely assuming property taxes don't affect them because they don't own property.
The report recommends the Texas Legislature enact a law requiring landlords to provide renters with timely, address-specific information about their monthly or annual property tax payments. The authors argue this transparency would increase tenant awareness of how public policy affects housing costs, foster government accountability by making tax burdens more visible, and allow renters to make informed decisions about rental properties and local elections. The bottom line: renters theoretically could pay 20% less in rent if not for local property taxes, and the report contends they deserve to know that figure before voting on measures that will raise it further.