Estimated at 0.9% of home value
Monthly Cost Breakdown
Austin — 1.87% property tax — 30-year loan
28-36% — manageable, but leaves less room for savings.
Compare
Property Tax Rates by City
See how property taxes compare across Austin-area cities. Rates include all overlapping taxing entities — county, city, school district, and special districts.
| City | Tax Rate | Monthly | Annual | MUD | |
|---|---|---|---|---|---|
| West Lake Hills | 1.30% | $460/mo | $5,525/yr | — | |
| Lakeway | 1.40% | $496/mo | $5,950/yr | — | |
| Bee Cave | 1.45% | $514/mo | $6,163/yr | — | |
| Rollingwood | 1.50% | $531/mo | $6,375/yr | — | |
| Spicewood | 1.50% | $531/mo | $6,375/yr | — | |
| Dripping Springs | 1.55% | $549/mo | $6,588/yr | — | |
| Point Venture | 1.55% | $549/mo | $6,588/yr | — | |
| Lago Vista | 1.60% | $567/mo | $6,800/yr | — | |
| Wimberley | 1.60% | $567/mo | $6,800/yr | — | |
| Fredericksburg | 1.65% | $584/mo | $7,013/yr | — | |
| Jonestown | 1.65% | $584/mo | $7,013/yr | — | |
| Llano | 1.70% | $602/mo | $7,225/yr | — | |
| Granite Shoals | 1.75% | $620/mo | $7,438/yr | — | |
| Marble Falls | 1.80% | $637/mo | $7,650/yr | — | |
| Burnet | 1.85% | $655/mo | $7,863/yr | — | |
| Florence | 1.85% | $655/mo | $7,863/yr | — | |
| Round Rock | 1.85% | $655/mo | $7,863/yr | — | |
| Austin | 1.87% | $662/mo | $7,948/yr | MUD | |
| Georgetown | 1.88% | $666/mo | $7,990/yr | — | |
| Liberty Hill | 1.90% | $673/mo | $8,075/yr | — | |
| Cedar Park | 1.92% | $680/mo | $8,160/yr | — | |
| Buda | 1.95% | $691/mo | $8,288/yr | — | |
| Leander | 1.95% | $691/mo | $8,288/yr | MUD | |
| Lockhart | 1.95% | $691/mo | $8,288/yr | — | |
| Del Valle | 1.98% | $701/mo | $8,415/yr | MUD | |
| Pflugerville | 1.98% | $701/mo | $8,415/yr | MUD | |
| Jarrell | 2.00% | $708/mo | $8,500/yr | — | |
| Kyle | 2.00% | $708/mo | $8,500/yr | — | |
| Smithville | 2.00% | $708/mo | $8,500/yr | — | |
| Bastrop | 2.05% | $726/mo | $8,713/yr | — | |
| San Marcos | 2.05% | $726/mo | $8,713/yr | — | |
| Manor | 2.07% | $733/mo | $8,798/yr | MUD | |
| Elgin | 2.10% | $744/mo | $8,925/yr | — | |
| Taylor | 2.15% | $761/mo | $9,138/yr | — | |
| Hutto | 2.20% | $779/mo | $9,350/yr | MUD |
West Lake Hills
1.30% rate
$460/mo
Lakeway
1.40% rate
$496/mo
Bee Cave
1.45% rate
$514/mo
Rollingwood
1.50% rate
$531/mo
Spicewood
1.50% rate
$531/mo
Dripping Springs
1.55% rate
$549/mo
Point Venture
1.55% rate
$549/mo
Lago Vista
1.60% rate
$567/mo
Wimberley
1.60% rate
$567/mo
Fredericksburg
1.65% rate
$584/mo
Jonestown
1.65% rate
$584/mo
Llano
1.70% rate
$602/mo
Granite Shoals
1.75% rate
$620/mo
Marble Falls
1.80% rate
$637/mo
Burnet
1.85% rate
$655/mo
Florence
1.85% rate
$655/mo
Round Rock
1.85% rate
$655/mo
Austin
1.87% rate · MUD zone
$662/mo
Georgetown
1.88% rate
$666/mo
Liberty Hill
1.90% rate
$673/mo
Cedar Park
1.92% rate
$680/mo
Buda
1.95% rate
$691/mo
Leander
1.95% rate · MUD zone
$691/mo
Lockhart
1.95% rate
$691/mo
Del Valle
1.98% rate · MUD zone
$701/mo
Pflugerville
1.98% rate · MUD zone
$701/mo
Jarrell
2.00% rate
$708/mo
Kyle
2.00% rate
$708/mo
Smithville
2.00% rate
$708/mo
Bastrop
2.05% rate
$726/mo
San Marcos
2.05% rate
$726/mo
Manor
2.07% rate · MUD zone
$733/mo
Elgin
2.10% rate
$744/mo
Taylor
2.15% rate
$761/mo
Hutto
2.20% rate · MUD zone
$779/mo
Rates include all taxing entities
Each rate shown is the total effective property tax rate combining county, city, school district (ISD), community college, healthcare district, and any special districts that overlap at that location. School taxes typically make up 45-55% of the total rate. Amounts update as you change the home price above.
What Relocators Need to Know
The Real Cost of Homeownership in Texas
Texas does things differently. No state income tax sounds great — until you see the property tax bill. Here's what to plan for beyond the mortgage payment.
Property Taxes Are Higher Than You Think
Texas has no state income tax, but makes up for it with property taxes of 1.3-2.2% of your home's appraised value, depending on the city. On a $400K home, that's $5,200-$8,800 per year — significantly more than states like California (0.7%) or Colorado (0.5%). Your total rate depends on the overlap of county, city, school district, and any special districts at your specific address.
MUD & PID Taxes: The Hidden Extra
Municipal Utility Districts (MUDs) and Public Improvement Districts (PIDs) are special taxing entities common in newer Austin-area developments. They fund infrastructure (roads, water, sewer) that the city hasn't annexed yet. MUD taxes can add 0.25-1.0% on top of your standard property taxes. These rates typically decrease over time as bonds are paid down, but they can add $100-$300+/mo to your housing cost. Not every home in a city is in a MUD — it's property-specific.
Texas Homeowner's Insurance Is Expensive
Texas homeowner's insurance premiums average $3,500-$4,500/year — among the highest in the nation due to hail, wind, and severe weather risk. Rates have increased significantly in recent years. If your property is in a FEMA flood zone, you'll need separate flood insurance (another ~$1,200/year). Getting quotes before you make an offer is smart — insurance cost varies significantly by location, construction type, and coverage level.
Homestead Exemption Saves Real Money
If the property is your primary residence, Texas's homestead exemption reduces your taxable value by $100,000 for school district taxes (the largest portion of your tax bill). On a typical Austin-area tax rate, that saves roughly $80-$100/month. You should apply before April 30 to receive the exemption for that tax year. Most new homeowners apply during the first January-April after closing. The exemption does NOT apply to MUD taxes, and there are additional optional exemptions from cities and counties that vary by jurisdiction.
No State Income Tax — But It's a Trade-off
Texas is one of nine states with no state income tax, which means more take-home pay. For a household earning $120K, that's roughly $4,000-$6,000/year you keep compared to a state with 4-5% income tax. However, Texas recovers that revenue through higher property taxes and sales tax (8.25% in Austin). The net benefit depends on your income-to-home-value ratio — higher earners with modest homes benefit most.
Maintenance Costs Add Up Fast
The general rule is to budget 1% of your home's value annually for maintenance and repairs — that's $4,000/year on a $400K home. In Texas, factor in HVAC costs (your AC will run hard from May through October), lawn irrigation, and potential foundation issues common with the clay-heavy soil in parts of the Austin metro. Older homes may need more; newer construction may need less initially but still benefits from a reserve fund.
Personalized Assessment
Need Help With Your Budget?
Every buyer's situation is different. Angie can walk you through a personalized affordability analysis based on your income, debts, and target neighborhoods — no generic calculator can replace that conversation.
Angie Ufomata
Real Estate Expert
Helping You Find Your Way Home