Texas housing costs at a glance
| Texas | |
|---|---|
| Median home value (Zillow) | $310,000 |
| Average effective property tax | 1.25% |
| Typical rate for a new buyer (calculator default) | 1.6% |
| Average homeowners insurance ($300k dwelling) | $4,668 a year |
| 2026 conforming loan limit (one unit) | $832,750 |
Example: median-priced home
Texas home for $310,000, 20% down, 6.5% 30-year fixed: principal and interest $1,568 + property tax $413 + insurance $389 = about $2,370 a month. Enter your own rate quote and the actual tax rate of the property for a precise figure.
Texas property tax
Texas has no state income tax, so local governments rely on property taxes: school districts, counties, cities and special districts each levy their own rate, often adding up to 1.6%–2.5% of the appraised value in fast-growing suburbs. The statewide average effective rate is about 1.25% because the homestead exemption lowers the taxable value of your main home, and annual increases in a homestead's appraised value are capped at 10%. File for the homestead exemption with your county appraisal district after you move in.
Other Texas costs
- No transfer tax: Texas does not tax real estate transfers or mortgages.
- Insurance: hail, windstorms and hurricanes make Texas one of the most expensive states for homeowners insurance; on the Gulf Coast you may also need windstorm coverage through TWIA and flood insurance.
- MUD taxes: many new subdivisions are in municipal utility districts that add their own tax rate.
Other states
See also the Texas paycheck calculator and mortgage costs in other states.
Frequently asked questions
What is the average property tax rate in Texas?
About 1.25% of a home's value on average, but total rates of 2% or more are common in suburban school districts and MUDs before exemptions.
What is the monthly payment on a median-priced Texas home?
On a $310,000 home with 20% down and a 6.5% rate, principal and interest are about $1,568; with property tax at 1.6% and insurance the total is about $2,370 a month.
Does Texas have a transfer tax on home sales?
No. Texas does not charge a real estate transfer tax or a mortgage recording tax.
Why is home insurance so expensive in Texas?
Severe weather – hail, tornadoes, windstorms and hurricanes – leads to frequent claims. The average premium is about $4,700 a year for $300,000 of dwelling coverage.
For information only; not a loan offer. Property tax, insurance and closing costs depend on the specific property and lender.
Sources
- Texas Comptroller – property tax
- FHFA – 2026 conforming loan limits
- NAHB analysis of Census ACS property tax data
- Zillow Home Value Index
- Insurify – home insurance by state
Rules checked: October 2026