Texas charges no state income tax, but the 1.6% average property tax rate is above the national median — your property tax bill is a significant part of your monthly payment. This calculator uses Texas-specific defaults: $315,000 median home price, 1.6% property tax, and $2,450/year average insurance.
Last updated: March 13, 2026
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Monthly Payment (Texas)$0
Loan Details — Texas
Texas median: $315,000
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Below 20% triggers PMI on conventional loans
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Average 30-year fixed ~6.75% (March 2026)
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Texas average: 1.6%
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Texas average: $2,450/yr
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Property Tax
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Texas Metro Area Home Prices
Click a metro to load its median price into the calculator above.
Yearly Amortization Schedule+
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Texas's Tax Landscape and Your Mortgage
Texas is one of nine states with no state income tax. That extra take-home pay makes a real difference in mortgage qualifying — a household earning $150,000 keeps roughly $5,000-$10,000 more annually compared to states with 5-7% income tax rates. That translates to an additional $400-$800/month that lenders factor into your debt-to-income ratio.
At the state's median home price of $315,000, the $1.6% property tax rate adds $420/month to your mortgage payment. That's $5,040/year — well above the national median of ~1.1%.
Property Taxes Across Texas
The 1.6% statewide average masks significant variation. No state income tax — but property taxes are among the highest in the nation
Price ranges across the state: Austin has a median of $450,000, while El Paso sits at $235,000 — a $215,000 gap that dramatically changes your monthly payment. At $1.6% property tax, that price difference alone means $287/month more in property tax in Austin.
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Homebuyer Programs and Exemptions
Texas offers several programs for homebuyers:
TDHCA My First Texas Home with competitive rates and down payment assistance up to 5%
My Choice Texas Home for non-first-time buyers
Homestead exemption: General homestead: $100,000 off assessed value for school taxes (increased from $40K in 2023); additional $10,000 for seniors/disabled; school district tax rate frozen for seniors
Texas-Specific Considerations
No state income tax — but property taxes are among the highest in the nation
The $100K school homestead exemption (increased in 2023) significantly reduces property tax bills
Property tax rates vary widely by school district — 1.0% in some rural areas to 2.5%+ in suburban DFW/Houston ISDs
Annual property tax protest process allows homeowners to challenge appraisal values
No state transfer tax
Texas has unique community property rules that affect mortgage qualification for married couples
Insurance costs are high due to hail, tornado, and hurricane (coastal) risk
Insurance Costs in Texas
At $2,450/year, Texas's average homeowners insurance premium is significantly above the national average of approximately $1,500/year. That's $204/month added to your housing cost — a factor that's easy to overlook when comparing states. Insurance costs are high due to hail, tornado, and hurricane (coastal) risk
Compare Texas Mortgage Rates
See personalized rates from Texas lenders. LendingTree matches you with up to 5 offers so you can compare and save.
0.39% property tax, 5% top rate. Median home: $232,500.
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1.04% property tax, no income tax. Median home: $340,000.
Arizona Mortgage Calculator
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0.62% property tax, 2.5% top rate. Median home: $395,000.
Frequently Asked Questions
What is the average property tax rate in Texas?
The average effective property tax rate in Texas is 1.6%. On a $315,000 home (the state median), that works out to approximately $5,040/year or $420/month added to your mortgage payment. Property tax rates vary by county and school district within Texas — always check your specific jurisdiction's rate. Homestead exemption: General homestead: $100,000 off assessed value for school taxes (increased from $40K in 2023); additional $10,000 for seniors/disabled; school district tax rate frozen for seniors
How much does homeowners insurance cost in Texas?
The average annual homeowners insurance premium in Texas is approximately $2,450 ($204/month). This is near the national average of approximately $1,500/year. Actual premiums depend on your home's location, age, construction type, and coverage limits.
What first-time homebuyer programs are available in Texas?
TDHCA My First Texas Home with competitive rates and down payment assistance up to 5%. My Choice Texas Home for non-first-time buyers. These programs typically have income limits, purchase price caps, and may require homebuyer education courses. Check the Texas housing finance agency website for current eligibility requirements and application deadlines.
How does Texas's lack of income tax affect home buying?
Texas has no state income tax, which means more of your gross income is available for mortgage payments. On a $150,000 salary, you keep roughly $5,000-$10,000 more per year compared to states with 5-7% income tax rates. However, Texas compensates with above-average property taxes (1.6%), which directly increases your monthly housing payment. The net benefit depends on your income relative to your property value.
What is the conforming loan limit in Texas?
The 2026 conforming loan limit in Texas is $806,500. Loans above this amount are considered jumbo loans and typically carry higher interest rates (0.25-0.5% premium), require larger down payments (10-20%), and have stricter qualification requirements including higher credit scores (700+) and lower debt-to-income ratios.
This calculator is for educational purposes. Tax rates and insurance costs are based on Texas state averages and may not reflect your specific county, school district, or municipality. Consult a financial professional for advice specific to your situation.