Highland Park & University Park
Planning for the Park Cities, where the plan has to outlast its authors.
The median home in Highland Park is worth about $1,989,900, and in University Park about $1,861,800. More than half of households in each town earn over $200,000 a year. At this level, planning shifts from building wealth toward keeping it organized, sensibly taxed, and ready to pass to the next generation.
The situation
Two small towns inside Dallas, with their own tax structure
Highland Park (about 8,800 residents) and University Park (about 25,200) are surrounded by the city of Dallas but are separate towns with their own city levies, and both are served by Highland Park ISD. The combined 2025 property-tax rate is roughly $1.57 per $100 in Highland Park and $1.59 in University Park, against about $2.23 for a home in Dallas and Dallas ISD.
The rate is lower; the values are not. With median homes near $2 million, a Park Cities owner still carries a substantial tax bill, and the house is usually one of several large assets alongside portfolios, business interests, retirement accounts and property meant for children or grandchildren. The work here is coordination: titling, basis, beneficiary designations, and a plan the next generation can follow.
Why it’s complex
Five questions for Park Cities families
Low rates, high values
In 2025 the Town of Highland Park levies $0.1993 per $100, University Park $0.2186, Highland Park ISD $0.8347 and Dallas County $0.2155. Even at those rates, the school bill on a median-value home here runs above $14,000 a year.
The homestead is protected at any value
The Texas Constitution shields a homestead from forced sale for most debts. In a city or town the limit is ten acres, with no dollar cap on value, which makes a Park Cities house one of the better-protected assets a family holds.
Community property and the full step-up
A couple who bought in University Park decades ago may be sitting on a very large gain. Because Texas is a community-property state, both halves can take a new basis at the first spouse’s death, depending on how the home was acquired and titled.
The step-up in basisNo state estate tax; the federal one remains
Texas levies no estate or inheritance tax, and the state constitution now prohibits one. The federal exemption is $15 million per person in 2026, and a $2 million home plus investments can put a family closer to it than they assume.
Estate planningPassing on a plan, not just assets
Heirs do better when they inherit instructions along with the accounts: who manages what, how gifts to children and grandchildren are made, and what happens to the family home. We write that down with your estate attorney so someone else can follow it.
Is your family ready?Sources: U.S. Census Bureau, ACS 2020–2024 5-year estimates for Highland Park and University Park; Texas Comptroller 2025 city, ISD and county rate reports; Dallas Central Appraisal District 2025 rate reports (combined rates, approximate); Texas Comptroller, homestead exemptions; Tex. Tax Code §§11.13, 11.26; Tex. Const. art. XVI, §§50–51; IRS, estate and gift tax.
Our approach
One plan for the house, the portfolio and the heirs
We build a single picture of what the household owns, how each asset is titled and what its basis is, then plan taxes and transfers across all of it. The house is part of that math. On a Highland Park home at the median value, the $140,000 exemption leaves $1,849,900 subject to school tax; at Highland Park ISD’s 2025 rate that is about $15,441 a year ($1,849,900 × $0.8347 / $100). For University Park’s median home the same calculation gives about $14,372 ($1,721,800 × $0.8347 / $100).
Map every asset and its basis
List what you own, how it is titled, whether it is community or separate property, and the gain embedded in each holding.
Manage taxes across the whole
Harvest losses, place assets in the right accounts, give to charity from appreciated holdings, and time sales around the basis rules.
Make the plan transferable
Coordinate wills, trusts and beneficiary designations with your attorney, plan lifetime gifts, and document how the family home and investments should be handled.
The work
What you’ll work through with us
- An asset-by-asset inventory of title, basis, and community or separate character
- Estate-tax exposure measured against the 2026 federal exemption
- Gifting to children and grandchildren, including education accounts
- Charitable giving from appreciated assets
- The over-65 exemption and school-tax ceiling on your Park Cities home
- Tax-aware management of concentrated and low-basis holdings
- A written family plan heirs can follow
- Coordination with your estate attorney and CPA
Planning is led by Theo Halbardier, CFP®, CIMA®, CAIA®, the firm’s founder. We are fee-only: no commissions, no product sales. About Theo
Questions
Common questions from Park Cities households
Do you have an office in Highland Park?
We work with Highland Park and University Park households by video and, by arrangement, in person. We do not maintain a public office location.
Why are property-tax rates lower in the Park Cities than in Dallas?
Highland Park and University Park are separate towns with their own city rates, and they are served by Highland Park ISD rather than Dallas ISD. The 2025 combined rates are roughly $1.57 and $1.59 per $100, against about $2.23 in Dallas with Dallas ISD. Because values are higher, the dollar bill can still be large.
How much does the homestead exemption save on a Park Cities home?
At Highland Park ISD’s 2025 rate of $0.8347 per $100, the $140,000 school exemption saves about $1,169 a year, and about $1,669 once it rises to $200,000 at 65. On a $2 million home, the over-65 ceiling, which caps the school levy at the amount in the year you qualify, can be worth more over time than the exemption itself.
Is our home protected from creditors?
Largely, under Texas law. A homestead of up to ten acres in a city or town is protected from forced sale for most debts, with no limit on value. Exceptions include the purchase-money mortgage, property taxes and certain liens, and federal bankruptcy law limits protection for equity acquired within 1,215 days before a filing. Specific situations belong with an attorney.
Do we need estate planning if Texas has no estate tax?
Yes, and not only for tax. The federal exemption is $15 million per person in 2026, and a large estate can exceed it. Just as important: who inherits, who manages assets for them, and whether title and beneficiary designations match your will.
What happens to the basis of our home when one of us dies?
If the home is community property, both halves can receive a new basis equal to its value at the first death. For a Park Cities house bought long ago, that can remove most of the gain before a sale. Separate property, and property acquired while living in another state, can be treated differently, so we review how each asset came into the marriage.
Reviewed by Theo Halbardier, CFP® · Updated September 2026 · Figures current for 2026
Tell us where you are.
The first conversation is 30 minutes. Bring your questions; no preparation needed.
We work with individuals and families across the Park Cities and throughout Texas, meeting by video or in person by arrangement.
Meet with usWe do not maintain a public office at this location; Highland Park is part of the area we serve. Figures reflect law and published rates as of September 2026 and may change.