Property Tax on Lake LBJ — Burnet County vs. Llano County

How Texas Property Tax Works

Texas has no state property tax. All property tax is local — set by county, school district, city, and special district taxing entities combined. Each entity sets its own rate, expressed in dollars per $100 of appraised value. Your total tax bill is the sum of all applicable entity rates applied to your property's appraised value minus any exemptions.

The most important exemption for primary residence owners is the homestead exemption. For 2026, the school district homestead exemption is $140,000 off your appraised value for ISD taxes only (this was increased from $100,000 under SB 4 / Prop 13, approved November 2025). Counties, cities, and special districts may offer their own additional exemptions. The homestead exemption applies only to a property that is your principal residence on January 1 of the tax year — second homes and investment properties do not qualify.

Where the County Line Falls

The Burnet County-Llano County boundary follows the Colorado River through most of the lake. Properties on the north and east bank of the Colorado River arm are in Burnet County. Properties on the south and west bank — including Horseshoe Bay, Highland Haven, and most of the south shore — are in Llano County. At Kingsland, where the Llano River meets the Colorado River, the county line creates a more complex situation: the historic downtown of Kingsland straddles the boundary, with some blocks in Burnet County and others in Llano County.

Granite Shoals is primarily in Burnet County. Sunrise Beach is in Llano County. For properties in Kingsland specifically — or anywhere the county assignment is unclear from the address — look up the parcel on the county appraisal district websites directly. Both Burnet CAD and Llano CAD offer searchable online databases that confirm county, school district, and applicable taxing entities for any specific parcel.

Burnet County Tax Rates

Burnet County's 2025 general levy is $0.2863 per $100 of assessed value. Combined with Marble Falls ISD or Burnet CISD (depending on location), city rates if within an incorporated city limit, and applicable special districts, total combined rates in lake-area Burnet County parcels typically run $1.00 to $1.30 per $100 of assessed value. The Burnet County effective tax rate — the actual percentage of market value paid after accounting for exemptions and assessment ratios — runs approximately 1.04% for homestead properties and somewhat higher for non-homestead properties.

For a $1.5 million lakefront home in Burnet County as a homestead, a 1.04% effective rate produces an annual tax bill of approximately $15,600. As a non-homestead (second home), the bill rises to approximately $17,000 to $19,500 depending on specific entity rates and the absence of the homestead exemption.

Llano County Tax Rates

Llano County's general levy is $0.25953 per $100 of assessed value for 2025-2026. Llano County school districts — primarily Llano ISD for lake-area properties — run lower combined rates than comparable Burnet County districts. Total combined levy rates in Llano County lake-area parcels typically range from $0.85 to $1.10 per $100. The effective tax rate for Llano County homestead properties runs approximately 0.75%.

For the same $1.5 million lakefront home in Llano County as a homestead, a 0.75% effective rate produces an annual bill of approximately $11,250 — roughly $4,350 less per year than the Burnet County equivalent. Over a typical 10-year ownership horizon, that is $43,500 in cumulative tax savings, assuming rates hold relatively stable.

Horseshoe Bay, which sits almost entirely in Llano County, benefits from this lower rate structure. It is one of several reasons Horseshoe Bay commands consistent premium pricing relative to comparable waterfront in Burnet County — the long-term cost of ownership is structurally lower.

The $140,000 School Homestead Exemption (2026)

Texas Proposition 13, approved by voters in November 2025, increased the school district homestead exemption from $100,000 to $140,000 effective for the 2026 tax year. This change reduces school ISD taxes — the largest single component of most Texas property tax bills — on any homestead-qualifying property. A home in Marble Falls ISD (Burnet County) or Llano ISD (Llano County) pays ISD taxes on $140,000 less of appraised value under the new exemption.

For a $1.5 million Lake LBJ home with the full homestead exemption, the ISD portion of the bill is calculated on $1,360,000 rather than $1,500,000. The county, city, and special district portions are unaffected by the school exemption. The net effect varies by specific ISD rate, but for a typical Marble Falls ISD rate of approximately $0.70 per $100, the $140,000 exemption saves approximately $980 per year in ISD taxes alone versus the previous $100,000 exemption.

This exemption applies only to homestead-qualifying properties. Verify current exemption amounts with the applicable county appraisal district, as both amounts and eligibility requirements can change through legislative action.

How to Verify Before You Buy

Steps to confirm tax burden on any specific Lake LBJ property before making an offer:

• Go to burnet-cad.org or llanocad.net and search by the property address or parcel number
• Confirm which county the parcel is in — this is not always obvious from the address alone
• Review the "Taxing Units" section to see every entity levying taxes on that parcel
• Check the appraised value and any current exemptions applied
• Ask your agent for the most recent tax statement from the seller — this shows what was actually billed last year
• For non-homestead purposes, calculate without the homestead exemption to understand the true second-home tax burden

Tax appraisals in Texas can be protested annually. Both Burnet County and Llano County have Appraisal Review Boards that hear protests. The protest deadline is typically May 15 or 30 days after the Notice of Appraised Value is mailed, whichever is later. Properties on Lake LBJ — particularly in Horseshoe Bay and along the premium waterfront — have seen aggressive appraisal increases in recent years. Filing an annual protest is common practice among experienced Texas lake property owners.