Pre-loaded with Texas property tax rates, current mortgage rates, and state first-time buyer programs. Get your real Texas payment estimate in seconds.
Pre-filled with Texas averages — adjust to match your situation. · Updated July 2026
Texas Fast Facts (2026): Median home price $310,000 · Average property tax rate 1.74% · No state income tax · Average 30-year mortgage rate 6.9% · Down payment assistance available up to 5% through My First Texas Home.
Texas is one of the most active housing markets in the country, driven by robust job growth, no state income tax, and population migration from higher-cost states like California and New York. The Lone Star State added over 500,000 new residents in 2024–2025, keeping demand strong even as mortgage rates climbed. The flip side: Texas property taxes rank among the highest in the nation at an average effective rate of 1.74%, significantly above the national average of 1.10%. This means your monthly payment will include a meaningful escrow component that many out-of-state buyers underestimate.
The Texas market varies dramatically by region. Austin saw price corrections from its 2022 peak and remains the most expensive major market in the state. Houston, Dallas, and San Antonio offer more moderate prices with strong rental demand. For first-time buyers, the Texas Department of Housing and Community Affairs (TDHCA) administers several programs offering below-market rates and down payment assistance — making homeownership more accessible than the high property taxes might initially suggest.
| City | Median Home Price | Year-over-Year Change |
|---|---|---|
| Austin | $575,000 | −3.2% |
| Plano | $465,000 | +1.1% |
| Dallas | $380,000 | +0.8% |
| Fort Worth | $375,000 | +1.4% |
| Houston | $310,000 | +2.1% |
Texas property taxes are set at the county level and fund local schools, emergency services, and municipal governments. Rates vary significantly across the state — Travis County (Austin) and Tarrant County (Fort Worth) tend to be among the higher-taxed areas, while some rural West Texas counties carry lower rates.
| County | Effective Property Tax Rate | Annual Tax on $310K Home |
|---|---|---|
| Harris (Houston) | 1.89% | $5,859 |
| Dallas | 1.81% | $5,611 |
| Tarrant (Fort Worth) | 1.84% | $5,704 |
| Bexar (San Antonio) | 1.65% | $5,115 |
| Travis (Austin) | 1.76% | $5,456 |
| Collin (Plano) | 1.62% | $5,022 |
| Denton | 1.74% | $5,394 |
| El Paso | 1.99% | $6,169 |
| Nueces (Corpus Christi) | 1.47% | $4,557 |
| Lubbock | 1.59% | $4,929 |
The flagship Texas first-time buyer program offers 30-year fixed-rate mortgages at below-market interest rates for qualified buyers. Eligible borrowers receive down payment and closing cost assistance of up to 5% of the loan amount as a 0% interest, deferred second lien — no monthly payments required until you sell or refinance. Income limits apply (generally up to $90,000–$120,000 depending on county and household size). Available to first-time buyers and veterans statewide.
The MCC program provides a federal income tax credit of 20–40% of the annual mortgage interest paid, up to $2,000 per year. Unlike a deduction, this is a dollar-for-dollar reduction in your federal tax bill — effectively lowering your real mortgage cost for the entire loan term. The MCC can be combined with My First Texas Home for maximum benefit. Eligibility requirements mirror the My First Texas Home program, including first-time buyer status and income/purchase price limits.
Using the statewide median home price of $310,000 with a 10% down payment ($31,000), here's what a typical Texas mortgage looks like in 2026:
| Component | Monthly Cost |
|---|---|
| Loan Amount ($279,000) | — |
| Principal & Interest (6.9%, 30 yr) | $1,843 |
| Property Tax (1.74% avg) | $449 |
| Homeowner's Insurance (est.) | $150 |
| Total Estimated PITI | $2,442 |
Note: PMI (~$100–$150/mo) would apply if your down payment is less than 20%. Texas homeowner's insurance tends to run higher than the national average due to hurricane and hail risk in many parts of the state.
At the median Texas home price of $310,000 with 10% down and a 6.9% 30-year rate, your principal and interest comes to about $1,843/month. Adding average property taxes (~$449/month) and homeowner's insurance (~$150/month) brings the total to roughly $2,442/month. Actual amounts vary significantly by city — Austin buyers face considerably higher payments than Houston or San Antonio.
Yes, Texas property taxes average 1.74% of assessed value — well above the national average of 1.10%. This is the primary trade-off for having no state income tax. On a $310,000 home, expect to pay roughly $5,394/year ($449/month) in property taxes. Some Harris County and El Paso County properties carry rates approaching 2.0%.
My First Texas Home is administered by the Texas Department of Housing and Community Affairs (TDHCA). It offers below-market 30-year fixed rates plus down payment assistance of up to 5% of the loan amount. The second-lien assistance is deferred at 0% interest — no monthly payments until you sell or refinance. It's available to first-time buyers and veterans who meet income and purchase price limits.
Yes — Texas offers a General Residence Homestead Exemption of $100,000 off your assessed value for school district taxes (as of 2023 law). Additional exemptions exist for seniors (65+), disabled persons, and veterans. If you purchase a Texas home as your primary residence, filing a homestead exemption application with your county appraisal district is one of the most important steps to take immediately after closing.
Absolutely. Conventional loans allow as little as 3% down; FHA loans require 3.5% with a credit score of 580+. The My First Texas Home program also provides assistance for buyers with limited savings. PMI will apply for conventional loans with less than 20% down, typically adding $60–$180/month depending on your loan size and credit score. PMI can be removed once you reach 20% equity.