Texas vs. other states’ property tax rates If you own a home here, you’ve probably felt that yearly hit and wondered how it compares to other states. Are we paying way too much? Is it normal? And why does it seem so much higher than in other places? Let’s get real—property taxes in Texas are some of the highest in the country. There’s no state income tax, so a lot of the state’s revenue has to come from somewhere. That “somewhere” is your property tax bill.
How Do Texas Property Taxes Stack Up?
When you look at property tax rates across the country, Texas is consistently in the top 10 of the highest. The national average for property tax rates sits at around 0.99%, while Texas homeowners are paying an average of 1.6%—well above what most Americans pay.
Now, compare that to a state like Hawaii, where the average property tax rate is just 0.29%. Even states with big metro areas, like California (0.76%) and New York (1.38%), have lower tax rates than Texas.
| State | Average Property Tax Rate |
|---|---|
| Texas | 1.6% |
| California | 0.76% |
| Florida | 0.91% |
| New York | 1.38% |
| Hawaii | 0.29% |
Why Are Texas Property Taxes So High?
It comes down to one major thing—Texas doesn’t charge a state income tax. That’s great when you get your paycheck, but it means local governments need a way to make up for that missing revenue. Property taxes bridge that gap.
How?
- Schools rely heavily on property taxes for funding
- Counties and cities need revenuefor roads, emergency services, and public services
- There’s no state income tax, so property taxes naturally go up
That’s why your tax bill is so high. The money goes to pay for public schools, police, firefighters, and other community projects. But the catch? Texas property values keep rising, so homeowners end up paying more each year.
Are There Any States Worse Than Texas for Property Taxes?
Yes. Texas isn’t the worst state for property taxes, but it’s close. New Jersey takes the top spot, with an average property tax rate of 2.21%. Illinois (2.05%) and New Hampshire (1.96%) are also worse.
But Texas is right up there on the list. Homeowners in Texas are paying some of the highest property taxes in the nation, even beating out expensive states like California and New York.
How Do Texas Property Taxes Affect Homebuyers?
If you’re thinking about buying a home in Texas, property taxes matter—big time. That number impacts how much home you can afford, how much you’ll pay each month, and whether Texas is even the right place for you.
For example:
- Buying a $400,000 home in Texas? Expect to pay around $6,400 per year in property taxes.
- That same home in California? Just about $3,000 per year.
- In Hawaii? A shockingly low $1,160 per year.
The difference is huge.
What Can Texas Homeowners Do to Lower Their Property Taxes?
You can’t avoid property taxes, but you can fight back and try to lower them. A few ways to get some relief include:
- Filing a homestead exemption – This can lower your home’s taxable value and give you a break on your tax bill.
- Protesting your assessment– If you think your home’s value is too high, you can appeal to the appraisal district.
- Taking advantage of senior or disabled exemptions– If you qualify, you could get a massive tax reduction.
Most homeowners don’t protest their property values—so if you think your home is overvalued, it’s worth looking into.
FAQs
Why is Texas property tax higher than other states?
Texas has no state income tax, so it relies heavily on property taxes to fund public schools, infrastructure, and government services.
Do Texas property taxes ever go down?
Not really. Even if tax rates stay the same, rising home values mean most homeowners see an increase in what they pay each year.
How do Texas’s property taxes compare to Florida’s?
Texas property taxes are much higher. The average in Texas is 1.6%, while Florida sits at just 0.91%.
Conclusion
Texas property taxes are notably high due to the state’s lack of income tax, placing it among the top states for property tax rates nationwide. While this funds essential services, it significantly impacts homebuyers and existing homeowners. Although relief options exist, such as homestead exemptions and assessment protests, Texas residents should anticipate substantial property tax burdens.