Government · Chapter 13
Who controls property taxes?
In most states, property-tax rates are set by local taxing entities (school districts, counties, cities, and special districts), while the state legislature sets the overall rules and limits. The federal government does not levy property taxes.
Plain English
What it actually means
Your annual property-tax bill is the sum of separate tax rates set by each local taxing entity that covers your property. For a typical home, that usually includes a school district rate, a county rate, and a city rate.
Each of those rates is set by the elected board of that entity — the school board, the county commissioners, the city council — in their annual budget vote. State law sets the rules they have to follow, such as caps, exemptions (like homestead exemptions), and required hearings.
Breakdown
School district
Usually the largest piece of a local property-tax bill. The school board adopts the rate as part of the school budget.
County commissioners
Set the county property-tax rate that funds the sheriff, jail, county courts, public health, and county roads.
City council
Sets the city property-tax rate that funds municipal police, fire, water, streets, parks, and libraries.
State legislature
Does not set local rates directly, but writes the rules: caps on rate increases, homestead exemptions, appraisal rules, and required public hearings.
Why this matters when voting
“I will cut your property taxes” is one of the most common campaign promises. Whether a candidate can actually do that depends entirely on which office they are running for. This chapter helps you check that.
Common questions
Follow-up questions
- Why does my school district make up so much of my bill?
- In many states, public schools depend heavily on local property taxes for funding, which is why the school board’s rate often makes up the single largest piece of the bill.
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Sources
Where this information comes from
Last updated May 10, 2026. Civic Basics chapters cite official .gov sources where possible and are reviewed for neutrality.
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What does a school district control?