Property Tax on Cedar Creek Lake: Henderson vs. Kaufman County Explained

The Two-County Problem

Cedar Creek Lake sits in both Henderson and Kaufman counties, and the lake's communities fall on both sides of the county line. This creates a property tax situation that surprises buyers who assume "Cedar Creek Lake" is a single tax jurisdiction. It is not. The county your specific parcel sits in determines your county tax rate, your school district, and which county appraisal district handles your homestead exemption filing. Getting this wrong -- for example, filing a homestead exemption with the wrong appraisal district -- is a common and expensive mistake that can delay your exemption by a full tax year.

Always verify which county and appraisal district your specific parcel falls in before closing. Your most recent tax statement lists the appraisal district at the top. If you are buying and do not yet have a tax statement, check your property's parcel on either Henderson CAD or Kaufman CAD's public search -- only one will have a record for your parcel.

School District: The Largest Component

The school district levy is the largest single component of any Cedar Creek Lake property tax bill, typically representing 50% to 60% of the combined rate. Cedar Creek Lake is served by several school districts depending on location:

• Mabank ISD: Serves Gun Barrel City, portions of Mabank, and surrounding areas in both Henderson and Kaufman counties. A larger, established district with a recognized athletic and academic program.
• Eustace ISD: Serves Eustace and surrounding Henderson County communities. Smaller district with a strong local identity.
• Seven Points ISD / Trinidad ISD: Serve their respective smaller communities on the west and south shores.
• Malakoff ISD: Serves Malakoff and surrounding Henderson County communities near the dam on the south shore.

Effective Combined Rate Examples

Combined effective property tax rates at Cedar Creek Lake run approximately 1.20% to 1.50% depending on the specific city, school district, and any MUD or special district overlays. Henderson County's lower county rate (~$0.34) gives its communities a slight structural advantage over Kaufman County properties, though school district levies vary independently. On a $350,000 waterfront home, a 1.30% effective rate produces a tax bill of approximately $4,550 per year -- notably lower than comparable LISD-territory Lewisville Lake homes of equivalent value, which run approximately $6,000 to $7,500 per year depending on location.

The most affordable property tax positions on Cedar Creek Lake are generally in Henderson County communities (Malakoff, Trinidad, Star Harbor, Tool) served by smaller school districts with lower levies. The highest rates tend to occur in Kaufman County portions of the market where the county base rate is higher and school district levies are competitive with Henderson County alternatives.

The Homestead Exemption

Texas's homestead exemption provides a $140,000 reduction (as of 2026 after Proposition 13 passed in 2024) in school district taxable value for primary residences. For Cedar Creek Lake homes in the $300,000 to $500,000 range, this exemption eliminates school district taxes on a meaningful fraction of the property value. File with the appraisal district of the county your parcel is actually in -- not where you receive mail. If you bought in 2022 or later, you can file as soon as closing without waiting until the next tax year. Over-65 buyers also qualify for an additional $10,000 exemption and the school district tax freeze that locks the dollar amount of school taxes at the qualifying year's level regardless of future value increases.