Texas Mortgage Calculator

Texas trades a state income tax for some of the highest property tax bills in the country, and the bill is assembled from several taxing units: county, city, school district and often a utility or hospital district, each with its own rate. A home in a new subdivision may sit inside a municipal utility district (MUD) whose rate alone can rival the city's, so ask for the full list of units before you compare two houses. Insurance is the other large line: hail and wind push the state's average premium well above the national figure.

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The calculator is pre-filled for a $313,200 home (the Texas median, ranked 30th of 51) with 20% down at 7.40%. That comes to $2,315.41 a month: $1,734.83 principal and interest, $341.92 tax, $238.67 insurance. With 5% down and PMI it is $2,764.67.

Homestead exemptions and property tax relief

School districts must exempt $140,000 of a residence homestead's appraised value (Tax Code §11.13(b)), and homeowners 65 or older or disabled get another $60,000 off school taxes. Any taxing unit may also grant up to 20% of value. Once the homestead is in place, its appraised value cannot rise more than 10% a year. You apply on form 50-114 with the county appraisal district, not the state; the regular window is January 1 to April 30, and a buyer who closes mid-year can qualify for a prorated exemption.

First-time buyer programs

The Texas Department of Housing and Community Affairs offers My First Texas Home, a 30-year first mortgage for first-time buyers (veterans and buyers in targeted areas are exempt from that rule) with down payment and closing cost help of up to 5% of the loan, either as a deferred second lien repaid at sale or a version forgiven after three years. My Choice Texas Home drops the first-time requirement, and the Texas Mortgage Credit Certificate turns part of each year's mortgage interest into a federal tax credit.

Transfer and recording taxes

Texas has no state or local real estate transfer tax, so a deed costs only the county clerk's recording fee. Title insurance premiums, which are set by the Texas Department of Insurance rather than by each company, are usually the biggest third-party closing charge; by local custom the seller often buys the owner's policy.

Closing costs to plan for

Because there is no deed tax, cash to close is mostly lender fees, the lender's title policy, a survey and prepaid escrow. Prepaids run high here: with a 1.3% effective tax rate and premiums near $2,900, the initial escrow deposit can be several thousand dollars on a median home.

When property tax bills are due

Texas property tax bills generally go out in October and are due by January 31; unpaid taxes become delinquent on February 1 and start to add penalties and interest. Because Texas has no state income tax, local property tax is the main cost difference between neighborhoods, and the combined rate can change every year as school districts, counties and special districts adopt new rates.

Before you buy in Texas

Apply for the residence homestead exemption with the appraisal district in the county where the home is located, not with the state, using Form 50-114. You can file from January 1 through April 30 for the year you own and live in the home on January 1, and late applications are generally accepted up to two years after the delinquency date. School districts must give a $140,000 general homestead exemption, and once granted the homestead also caps annual growth in the home's taxable appraised value.

2026 loan limit in Texas

FHFA 2026 one-unit conforming limits: all 254 counties use the $832,750 baseline. A median-home loan of $250,560 is conforming.

Texas numbers used above

MeasureTexasU.S.
Median home value (ACS 2024)$313,200$360,600
Effective property tax rate1.31% (8th highest)0.89%
Average HO-3 premium (NAIC 2023)$2,864$1,737
Median household income$79,721$81,604
Median gross rent$1,475$1,487
Income needed at 28% (20% down)$99,232–

Frequently asked questions

Can I get the homestead exemption the year I buy?

Yes. A buyer who closes after January 1 can apply and receive a prorated exemption if the seller did not have one.

What is the median-home payment in Texas?

About $2,315.41 a month on a $313,200 home with 20% down at 7.40%, including tax and insurance.

What income do lenders want for that?

Roughly $99,232 a year under the 28% rule, or $118,486 with 5% down and PMI.

How does Texas insurance compare?

The 2023 average HO-3 premium was $2,864, above the $1,737 U.S. average.

Sources

See also: all states · house affordability · Texas paycheck