How are property tax rates determined in Texas?

Property tax rates in Texas are set by each taxing district (municipality, school district, park district, library, etc.) based on their annual levy (the amount of tax revenue they need). The rate is calculated by dividing the levy by the total assessed value of all property in the district.

What is the composite tax rate?

The composite tax rate is the sum of all overlapping taxing district rates that apply to a specific property. A typical property may be taxed by several overlapping districts. The composite rate determines your total tax bill when multiplied by your property's assessed value.

Why do tax rates vary within the same town?

Properties within the same municipality can have different composite rates because overlapping districts (school, park, fire, library) have different boundaries. A home in one school district may have a different rate than a home two blocks away in a different school district.

Bay City, TX Property Tax Rate 2026 — Full Breakdown by District

Showing latest tax year with year-over-year changes. Full rate history available with a paid plan. See products & pricing →

Property Tax — Tax Year 2025 (payable 2026)i

TX Comptroller

Composite Ratei

1.89%–2.23%+0.1%YoY

Varies by school district

Municipal Portioni

0.5577%-2%YoY27.1% of total

Effective Ratei

1.89%–2.23%

Est. Annual Taxi

$3K–$4K

Median Home Valuei

$160,800

Total Leviedi

$159.6M

Tax Per Capitai

$421

Rate varies by school district. Your actual rate depends on which school district your property falls in.

Rate Trend — click a year to explorei

20242025

Municipal

Other Districts

Where Your Tax Dollar Goesi

$0.51 Boling ISD

$0.49 Bay City ISD

$0.46 Palacios ISD

$0.42 Van Vleck ISD

$0.42 Tidehaven ISD

$0.34 Matagorda ISD

$0.27 City of Bay City

$0.16 Matagorda County

$0.11 Matagorda County Hospital District

$0.02 Port of Bay City Authority

$0.01 Palacios Area Seawall Commission Dist

Estimated Tax by Home Valuei

$50K

$944–$1,116

$100K

$1,889–$2,231

$150K

$2,833–$3,347

$200K

$3,778–$4,462

$250K

$4,722–$5,578

$300K

$5,667–$6,694

$350K

$6,611–$7,809

Highlighted value is closest to median home value ($161K)

11 Overlapping Taxing Districtsi

Boling ISDUnit K-12i

51%1.0496%

$444K levied

Bay City ISDUnit K-12i

48.6%1.0007%

$25.3M levied

Palacios ISDUnit K-12i

46%0.9486%

$19.5M levied

Van Vleck ISDUnit K-12i

41.8%0.8618%

$24.6M levied

Tidehaven ISDUnit K-12i

41.6%0.8578%

$15.9M levied

Matagorda ISDUnit K-12i

34.3%0.7073%

$3.5M levied

City of Bay Cityi

27.1%0.5577%

$7.5M levied

Matagorda Countyi

16.3%0.3365%

$34.9M levied

Matagorda County Hospital Districti

11.1%0.2288%

$23.6M levied

Port of Bay City Authorityi

2.3%0.0465%

$4.0M levied

Palacios Area Seawall Commission Disti

0.6%0.0121%

$276K levied