Calculate your Texas mortgage payment with state-specific property tax rates (1.60% average), no state income tax, and 2026 conforming loan limits.
TX average: 1.60% (no state property tax cap)
Texas has no state income tax. This is one of the state's biggest advantages for homeowners and workers.
Texas has some of the highest property taxes in the nation:
Texas has no state income tax, so local governments rely heavily on property taxes to fund schools, roads, and services. The average effective rate is 1.60%, among the highest in the nation. However, the homestead exemption can reduce your taxable value by up to $100,000, significantly lowering your actual tax bill.
Correct. Texas is one of seven states with no state income tax. You only pay federal income tax. This can save high earners thousands per year compared to states like California or New York. However, the trade-off is higher property taxes and sales taxes.
The homestead exemption reduces the taxable value of your primary residence. In Texas, you can exempt up to $100,000 of your home's value from school district taxes. For a $350,000 home, this saves you about $1,600/year in property taxes. Seniors (65+) get an additional $10,000 exemption and a tax ceiling.
Yes, Texas offers several programs through TSAHC (Texas State Affordable Housing Corporation). These include down payment assistance (up to 5% of loan amount), competitive interest rates, and special programs for teachers, first responders, and military. There are income caps and purchase price restrictions.
Income limits may apply.