Calculate your monthly mortgage payment in Texas — including the 1.60% property tax rate and current interest rates. Free, instant, no signup.
Enter your home price, down payment, rate, and term — get full amortization schedule instantly.
Open Mortgage Calculator →Texas is the second-largest real estate market in the United States, with over 400,000 home sales annually. The state's combination of no state income tax, strong job market, and relatively affordable home prices (compared to California or New York) makes it consistently attractive for first-time buyers and relocating families alike.
However, Texas's high property tax rates — among the highest in the nation at an average of 1.60% — are a crucial factor that many buyers overlook when calculating affordability. On a $308,000 home, property taxes alone add $411/month to your housing costs.
Unlike states such as California (0.75%) or Colorado (0.49%), Texas relies heavily on property taxes to fund public services, with no state income tax to offset the burden. The 1.60% statewide average translates to:
• $308,000 home → $4,928/year → $411/month
• $420,000 home → $6,720/year → $560/month
• $550,000 home → $8,800/year → $733/month
County-specific rates vary significantly. Travis County (Austin) averages 1.80%, Collin County (DFW suburbs) around 1.70%, and Harris County (Houston) approximately 1.55%. Use the mortgage calculator to add your estimated property tax for an accurate PITI figure.
Houston: Median home price ~$280,000. Most affordable major Texas metro, with diverse neighborhoods from The Heights to Katy and Sugar Land. Strong energy sector employment.
Dallas-Fort Worth: Median ~$340,000. Fastest-growing metro in the US. Suburbs like Frisco, McKinney, and Allen offer newer construction at competitive prices.
Austin: Median ~$480,000. Tech-driven market, significantly pricier than other Texas cities. Round Rock and Pflugerville offer more affordable entry points.
San Antonio: Median ~$260,000. Most affordable major Texas city. Strong military and healthcare employment base.
The standard 28% rule says your total housing payment (PITI — principal, interest, taxes, insurance) should not exceed 28% of your gross monthly income. In Texas, because property taxes are high, this calculation is especially important.
For a $308,000 home with 20% down at 7% interest, your estimated PITI is approximately $2,100/month. To keep this at 28% of income, you'd need a gross monthly income of $7,500 ($90,000/year). Use our mortgage calculator to model your specific scenario.
With the median Texas home price of $308,000, a 20% down payment, and 7% interest on a 30-year loan, the principal & interest payment is ~$1,638/month. Adding property taxes (~$411/mo) and insurance (~$100/mo) brings the full PITI to approximately $2,150/month.
Texas averages 1.60% annually on assessed home value — one of the highest in the US. This varies by county: Travis (Austin) ~1.80%, Harris (Houston) ~1.55%, Bexar (San Antonio) ~1.40%. Check your specific county assessor for exact rates.
No. Texas has no state income tax, which increases your effective take-home pay and partially offsets the higher property tax burden compared to states like California or New York.
A conventional 20% down payment on the median $308,000 Texas home is $61,600. FHA loans allow as little as 3.5% down ($10,780) but require mortgage insurance. Many Texas first-time buyer programs offer down payment assistance — check the Texas State Affordable Housing Corporation (TSAHC) for current programs.