Buying in Texas: what the numbers look like
Property taxes are the line to watch in Texas: at an average effective 1.58% — 6th highest in the country versus a ~0.94% national average — the typical $300,000 home carries roughly $4,740 a year ($395 per month) in tax before you've paid a dollar of principal. On the insurance side, Texas homeowners average about $4,400 a year — 64% above the 50-state average, so get quotes early; the premium can move a deal's math. Hurricane, hail, and freeze losses make Texas one of the priciest insurance markets.
Put together at an illustrative 6.5% rate (30-year, 20% down), the typical Texas purchase pencils out near $2,279/month: $1,517 principal & interest + $395 tax + $367 insurance. That's the number the calculator above starts from — swap in your real price, rate quote, and county figures to make it yours.
Property taxes & closing costs in Texas
No state income tax — property taxes carry the load. The homestead exemption removes $100,000 of value from school taxes and caps appraisal growth at 10%/year.
Transfer tax: No real estate transfer tax. Closing costs also include lender, title, and recording fees — typically 2–5% of the price all-in.
Texas at a glance
| Typical home value (Zillow, 2025) | $300,000 (32nd highest) |
| Avg. effective property tax (2023) | 1.58% ≈ $395/mo |
| Avg. home insurance (2025) | $4,400/yr ≈ $367/mo |
| Example payment (typical home, 6.5%, 20% down) | $2,279/mo |
Frequently asked questions
How much is the mortgage payment on a typical Texas home?
The typical Texas home runs about $300,000 (Zillow, 2025). With 20% down ($60,000) on a 30-year loan at an illustrative 6.5% rate, the full monthly payment is roughly $2,279 — $1,517 principal & interest, $395 property tax, and $367 insurance. Adjust every input above to match your own price and quote.
What is the property tax rate in Texas?
Texas's average effective rate is 1.58% of home value — the 6th highest in the nation (Tax Foundation, 2023 data). On the typical $300,000 home that is about $4,740 per year. No state income tax — property taxes carry the load. The homestead exemption removes $100,000 of value from school taxes and caps appraisal growth at 10%/year.
How much is homeowners insurance in Texas?
Roughly $4,400 per year on average for $300k of dwelling coverage (Bankrate, 2025) — above the 50-state average of $2,682. Hurricane, hail, and freeze losses make Texas one of the priciest insurance markets.
Nearby states & more tools
Compare: Oklahoma mortgage calculator · Louisiana mortgage calculator · New Mexico mortgage calculator · Arkansas mortgage calculator — or see all 50 states compared.
Not sure of your price range? Start with the home affordability calculator, then fine-tune here. The full mortgage calculator has extra payments and PMI controls too.
Data & sources: Property tax — Effective property tax rate on owner-occupied housing, calendar year 2023 (Tax Foundation analysis of Census ACS data, published 2025). Home value — Typical home value, Zillow Home Value Index (ZHVI), 2025, rounded to the nearest $5,000. Insurance — Average annual homeowners insurance premium for $300k dwelling coverage (Bankrate/Quadrant 2025), rounded to the nearest $50. State-level figures are planning defaults, not quotes: property taxes vary by county and city, insurance varies by home and insurer, and home values move monthly. Every value prefills the calculator but remains editable. The 6.5% rate is illustrative, not an offer or a prediction — always enter a real quote.
Disclaimer: Educational purposes only — not financial advice. See our Terms of Use.