Texas mortgage calculator
Texas mortgage calculator, built around Texas taxes.
Texas has no state income tax, but property tax rates run well above the national average. This calculator defaults to a realistic Texas rate, and the guide below covers the homestead exemption and down payment assistance programs unique to Texas buyers.
Property tax defaults to $6,720/yr, based on Texas's ~1.6% statewide average rate on this home price. Edit it to match your county's actual rate.
No income tax, higher property tax
Why Texas property taxes run high
Texas has no state income tax, so the state leans more heavily on property and sales taxes to fund schools and local government. School districts alone typically account for 50-65% of a Texas property tax bill. The statewide average effective rate is about 1.6%, the sixth highest in the country, though it varies a lot by county — fast-growing suburbs like Fort Bend and Williamson County often run above 2.2%, while some rural counties sit under 1%.
The tradeoff can still favor Texas for higher earners, since there's no state income tax to offset — but it's worth budgeting for the property tax reality specifically, not just comparing sticker prices to other states.
2026 update
The $140,000 homestead exemption
For the 2026 tax year, Texas's mandatory school district homestead exemption is $140,000, up from $100,000 — meaning your school district taxes are calculated on your home's value minus $140,000, not the full appraised value. Homeowners 65 or older, or those with a qualifying disability, get an additional $60,000 exemption, for a combined $200,000 reduction.
This only applies to your primary residence, and you need to file for it — it isn't automatic. Filing is free through your county appraisal district, and the standard deadline is April 30, though late filing for up to two prior years is generally accepted.
Down payment help
Texas down payment assistance programs
Coming up with a down payment is often the biggest hurdle for Texas buyers, and the state runs two agencies specifically to help close that gap.
Up to 5% of your loan amount as a 0% interest second loan, deferred until you sell or refinance. Paired with an FHA, VA, or USDA first mortgage.
Open to all eligible buyers, not just first-timers. Provides up to 5% down payment assistance as either a grant or a forgivable loan.
For teachers, firefighters, police, EMS, corrections officers, veterans, and nurses — a grant plus a slightly below-market mortgage rate.
Most of these programs require a minimum 620 credit score, a homebuyer education course, and have income limits that vary by county. There's also a separate benefit worth knowing about: the Texas Mortgage Credit Certificate, a federal tax credit worth 15% of your annual mortgage interest, capped at $2,000 per year — since Texas has no state income tax, this federal credit carries relatively more weight for Texas buyers than it might elsewhere.
Frequently asked
Texas mortgage calculator FAQ
What is the average property tax rate in Texas?
About 1.6% statewide on average, the sixth highest in the country, though it varies significantly by county — some suburban counties exceed 2.2%, while rural counties can fall under 1%.
How much is the Texas homestead exemption in 2026?
$140,000 off your home's value for school district taxes, up from $100,000. Seniors and homeowners with qualifying disabilities get an additional $60,000, for a combined $200,000 exemption.
Does Texas have down payment assistance programs?
Yes — TDHCA and TSAHC both offer programs providing 3-5% of your loan amount in down payment help, as either a grant or a low-interest deferred second loan, for eligible buyers.
Why are Texas property taxes so high if there's no state income tax?
Texas relies more heavily on property and sales taxes to fund schools and local services in place of a state income tax. School districts alone typically make up 50-65% of a property tax bill.
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