Texas has no state income tax, making it attractive to buyers — but property tax rates are among the highest in the nation, averaging around 1.60–1.80% in many counties. The state selector defaults to a statewide average; your actual county rate may differ significantly.
Free Calculator
Calculate your exact payment
Pre-loaded for this scenario · Adjust any input · Instant results
The average effective property tax rate in Texas is approximately 1.05%. On a $305,000 home, that works out to roughly $3,203 per year, or $267 added to your monthly mortgage payment. Rates vary by county and municipality, so your actual rate may differ.
What is the average mortgage payment in Texas?
Based on the median home price of approximately $305,000 in Texas, with 20% down and a 7% interest rate on a 30-year loan, your monthly principal and interest payment would be around $1,623. Add property taxes and insurance and your total PITI payment is typically $2,017/month.
Do I need a special loan for buying in Texas?
No — conventional, FHA, VA, and jumbo loans are all available in Texas. If you're a veteran or active-duty service member, a VA loan is worth a close look since it requires no down payment and no PMI. First-time buyers should also check Texas's state housing finance agency for down payment assistance programs that may be available.
What is the minimum down payment to buy a home in Texas?
The minimum down payment depends on loan type. Conventional loans allow as little as 3% down. FHA loans require 3.5% (with a 580+ credit score). VA loans allow 0% down for eligible veterans. The higher the purchase price, the more down payment you'll typically need to keep your monthly payment manageable — use the calculator above to model different scenarios.
What salary do I need to afford a home in Texas?
Using the 28% rule (housing costs should not exceed 28% of gross monthly income), you'd need a gross monthly income of at least $7,205 — about $86,456 per year — to comfortably afford the median-priced home in Texas with 20% down at current rates.