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Factor in property taxes before buying Texas real estate

On Behalf of | Mar 10, 2017 | Real Estate Transactions

The state of Texas has — whether you think it’s a good idea or not — one of the highest property tax rates in the United States. According to an analysis published by WalletHub, Texans pay approximately 1.9 percent in property taxes. That ranks our state as having the sixth highest property tax rate in the country.

Considering that the average value of Texas homes is $136,000, the average Texas homeowner is paying approximately $2,578 in taxes annually. That said, Texas does not have a state-level income tax, so homeowners arguably are saving on taxes in other areas, compared to states that do have property taxes. Furthermore, Texas does not have a vehicle tax rate, so this represents another area where Texas homeowners save money.

Those who are looking to reduce their tax burden are hopeful that tax reform measures will move forward in the Texas Legislature this year. According to Lt. Gov. Dan Patrick, tax reform is a high priority in government for 2017.

To complete its study of property taxes in Texas and the rest of the United States, WalletHub used statistics from U.S. Census data — in particular, median tax payment figures and median home price numbers.

San Antonio residents seeking to buy real estate need to look at a lot of different financial factors before moving forward with an actual purchase transaction. Meeting the demands of a monthly mortgage payment, in addition to paying property insurance and maintenance expenses, are important considerations. Texas property tax costs should also weigh heavily in these vital budget calculations.

Source: Austin Business Journals, “Texas has some of the highest property taxes in the country,” Evan Hoopfer, March 08, 2017