Home Buying in Austin>Question Details

Jane, Home Buyer in

I was thinking about relocating to Texas

Asked by Jane, Sat Jun 28, 2008

Looking at the prices of homes, I notice they are significantly priced lower than my area. Then someone told me it's made up in property tax. How much are property taxes there? Could you give me an example? Say, how much would the annual taxes be on a $150,000 home?

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If you are thinking of the Austin metro area, the estimated taxes would be approximately $3,700. This will vary, plus or minus, depending on the area you purchase a home. By applying for Homestead Exemption, there are some savings on your property taxes. Also, the amount paid for property taxes, is a tax deduction you can take on your federal income tax return. This amount will vary, depending on what tax bracket you are in. Please go to my web site, there are a numeroust tools available on this site to evaluate the area, such as: schools, community profiles, roads, etc. I would happy to assist and advise you in finding a home in this area. Finally, I would be glad to provide you a relocation package of the Austin Metro area. Please feel free to contact me at your convenience.
1 vote Thank Flag Link Sat Jun 28, 2008
I have a home in that price range and my taxes are $3,740. Where are you coming from Jane? Texas has no state income tax which is a big plus. In other parts of the country there are high tax bills and a state inccme tax. Tax bill would equate to about $300 per month on your house payment. Does that answer your question
Web Reference: http://www.LeanderHomes.com
1 vote Thank Flag Link Sat Jun 28, 2008

There are no income taxes, so depending on where you're coming from, the property taxes here compared to income and property taxes where you are, may not be an issue. Typical property taxes run from 1.9% to 3.5% depending on the locale. When you say Austin, that isn't enough for someone to answer your question definitively. There are locations in the Austin metro area that can vary as widely as the percentages I gave above.


1 vote Thank Flag Link Sat Jun 28, 2008
I am a realtor in San Antonio, Texas. Therefore, I can only speak to property taxes in San Antonio, and then It depends on whether the home is located in the City of San Antonio or outside the city limits. Normally, properties located outside the city limits are $1,000 less in taxes because you would not be paying city taxes. Typically, on a $150,000 home inside the city limits you would pay roughly $3,500 annually. Outside the city you may be paying $2,700 annually. If you are thinking of San Antonio as a possible destination, please contact me, and I will provide you with more detailed information.

Yvonne Baker, REALTOR
(210) 488-5504
Web Reference: http://www.YvonneBaker.com
1 vote Thank Flag Link Sat Jun 28, 2008
Dear Jane,
The tax rates vary depending upon which neighborhood you live in. For example the taxes in Tarrytown are higher than those in Barton Hills. The average rate is about 2.8 for the Austin area in general. For a $150K home if the taxe rate is 2.75% the taxes would be $4125. Although the are exceptions to the rule. For example if you go a little south there is a neighborhood called Shady Hollow (just south of Brodie & Slaugther Lane) technically it outside the city limits, so there are no city taxes. the homes are priced from $200K-$650K. The average lots are about a half acre, with the higher priced homes on lots as big as three acres. The street address of these homes show up as being 'Austin' however they are about 1.50 miles south of Austin clity limits. So the taxes are less, now you don't get to vote in the city elections because you are a 'county' resident, but its worth it. I live in this neighborhood and it takes me about 15 minutes to get to downtown, during rush hour its about 30 minutes. There is plenty of shopping and entertainment close by as well.

Please call me if I may help you with your new home purchase.
Web Reference: http://www.BetinaForeman.com
0 votes Thank Flag Link Mon Sep 29, 2008
Hello - where are you moving from?
Please do not forget - our property taxes are higher, but Texas does NOT have a State Income tax!
number example:
if your property taxes here are say 3% of the $150,000 home = equals $4,500 a year.
if you are say used to $1,500 - $3,000 depending on where you are coming from, then your delta # to address is preliminarily +$1,500.00 ish.
Depending on the State or where you are relocating from, when we moved from California to Austin - we saved a LOT more than the $1,500 that we had to ante up for our new property tax amount.
Now, I don't want to say that someone might be "tripping over pennies" becasue you work hard for your annual compensation; but as your Mortgage Broker - I am extremely qualified to show you how all of these numbers "fold in / will come together" for you and your family.
Please give us a call, or drop us an email with your questions, if you would like to crunch some numbers!
Jeff Albrecht
REALTOR & Mortgage Broker
Web Reference: http://www.WindsorCap.biz
0 votes Thank Flag Link Sat Sep 20, 2008
I lend all over the state. Taxes vary a bit by location.
I have seen them as low as 2% and as high as 3.5% give or take.

Let me know the area you are looking and I will give you a tighter range.
Good luck!! You will love it here.
0 votes Thank Flag Link Thu Jul 24, 2008
After you purchase your home in Texas and declare it as your primary home (after January 1st), you are eligible for Homestead exemption on your property taxes. You will be able to see a discount in your property taxes and the discount varies per Appraisal District.
0 votes Thank Flag Link Thu Jul 24, 2008
2.5 to 3% a year is fairly normal. It depends on the area, city, schools, etc. We raise tax revenues this way versus in income taxes. No state income tax here.
Web Reference: http://www.teamlynn.com
0 votes Thank Flag Link Wed Jul 2, 2008
Bruce Lynn, Real Estate Pro in Coppell, TX
Well, I don't know where I saw those cheap homes, but it wasn't on your website Brian. LOL! Nice homes, but my gosh, they are just as expensive as the ones around here. And then I'd have to pay an extra $300-400 a month? Maybe I oughta stay put.
0 votes Thank Flag Link Tue Jul 1, 2008
if you buy in the austin area you can expect a tax rate of around 2.7% annually . for $150K that will put you at around $4000. Let me know if I can be of any assistance. you can visit my website and do some property searches.
Web Reference: http://www.brianeddins.com
0 votes Thank Flag Link Tue Jul 1, 2008
Jane, the actual tax rate in Austin varies. It ranges from 2.15% as high as 2.8% depending on what part of town you live in. And yes there are a few military bases near Austin that can save you money. One in Killeen, One in San Antonio, and Camp Mabry, which I'm not sure if there is commissary on site, but it is a base. Happy Hunting.
0 votes Thank Flag Link Tue Jul 1, 2008
Jane, When you find a specific home you are interested in go to the County Appraisal District site. You can enter the address, and find the exact annual tax amount.
0 votes Thank Flag Link Mon Jun 30, 2008
FYI . . . San Antonio is a great place for military and civilian retirees. We have Lackland AFB, Kelly AFB, Randolph AFB and Fort Sam (Army). Bexar County Tax Appraisers also offers homestead tax exempt status (lowers property tax for seniors). We also have some beautiful communities in San Antonio to choose from. Log onto my website to view some of these properties.
Web Reference: http://www.YvonneBaker.com
0 votes Thank Flag Link Mon Jun 30, 2008
Fort Hood is in Killeen TX about 40 miles north of Austin. I'm surprised that no one mention it.


0 votes Thank Flag Link Mon Jun 30, 2008
You may want to check on the level of service to retirees. Just and FYI...
0 votes Thank Flag Link Mon Jun 30, 2008
Thanks, Lucy. I noticed also that San Antonio has Lackland AFB. That base also has a medical facility.
0 votes Thank Flag Link Sun Jun 29, 2008
The Naval Air station / Joint Reserve Base is located in Fort Worth, Texas. Just a heads up in the event you consider north Texas as a final destination.
0 votes Thank Flag Link Sun Jun 29, 2008
Karen, thanks for your input. I found it helpful to hear how your income went up. I'm sure that helps with the tax payment a great deal. Sales tax where we are is about 8% too. Are there any military bases near Austin? We are a retired military family and can save money when we are near a base with commissary and medical facilities.
0 votes Thank Flag Link Sun Jun 29, 2008
We don't have state income tax, but we do have property taxes and a pretty hefty sales tax as well. The property taxes are roughly 3% (estimating up) and the sales tax rate is 8% with the municipalities having some ability to add on up to 0.5% more.

For all of that, when we moved here from Kentucky 9 years ago, not having state income tax added almost $500/month to our income immediately. The property taxes can and should be escrowed into your month mortgage payment. We didn't at first because our lender wouldn't do it, and it was a real hassle to come up with $3 -4,000 by the end of January every year.

In addition, we found that our energy costs were higher, but then we didn't have AC in our old house in KY and we now have a swimming pool, which adds to the cost of electricity significantly.

We live in the DFW area, but I presure the situation is similar in Austin.

I'm glad we moved here. (We were transferred with my husband's job.) I am one of those rare birds that actually misses the cold weather and the snow. Oddly enough, our winter is actually high summer. Instead of the cold killing the garden plants and forcing us into our homes to succumb to cabin fever, we have the high heat that can wither garden plants in a matter of hours and which sends us into the safety and comfort of our AC. We do not have the high humidity with the high temperatures though, and we are too far inland to really experience any serious hurricane activity.
0 votes Thank Flag Link Sun Jun 29, 2008
In the event you consider moving to the Fort Worth area, the estimated tax percentages range from 2.5% - 2.8%, depending on if you live within city limits. My daughter bought a new home from a builder that wa priced at 162k, she got it for 148k with builder discounts and a guaranteed 4.8% interest rate for 30 years. New builds are by far the best investment in my area because sellers are competing with the awesome amount of inventory in Keller, Southlake and the Alliance Corridor.
Where are you coming from? What is your time frame to move? Interest rates are going up so let me know if you need any help in determining what part of Texas you will call home.
Lucy Puniwai

0 votes Thank Flag Link Sun Jun 29, 2008
Thanks for all your answers!
0 votes Thank Flag Link Sat Jun 28, 2008
What part of the state. Texas was the #1 inbound state for moves in 2007, so we must be doing something right, you also have a homestead exemption. If you are moving to Dallas contact my office 972-699-9111 website http://www.lynn911.com over 60,000 Dallas homes for sale posted there including Dallas home foreclosures.
0 votes Thank Flag Link Sat Jun 28, 2008
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