By Tim Landy · October 3, 2026
The payment that matters is the full monthly payment, not the principal and interest line. In Austin that means property taxes and insurance belong in the number before you tour, not after you fall for a house.
There is no single Austin tax rate. Each address is a stack of taxing units: city or county, school district, and often a community college, hospital, or special district. Two houses a few miles apart can carry different bills on the same price.
Texas has no state property tax and no state real estate transfer tax. The school homestead exemption is separate from the rate. The Texas Comptroller currently lists a $140,000 school homestead exemption, plus an extra $60,000 for homeowners age 65 or older or with a disability (checked October 3, 2026).
The Payment Is Principal, Interest, Taxes, and Insurance
A rate quote that leaves taxes and insurance out is not a budget. Ask the lender to show those lines on the estimate. Our mortgage calculator splits them so you can see the pieces. The percentages in that tool are starting estimates, not a quote for your address.
There Is No Single Austin Property Tax Rate
Do not budget from one citywide percentage. Look up the taxing units for the address, then the current rates and exemptions. A homestead filing can lower the taxable value. It does not create one rate for the metro.
Homestead and Age or Disability Exemptions
If the house is your primary residence, you can apply for a homestead exemption after you own it and live in it. The Comptroller’s school exemption is $140,000. Homeowners age 65 or older, or with a disability, can receive an additional $60,000 school exemption (Texas Comptroller).
Some cities and counties offer their own exemptions on top of the school one. Those are local. Do not assume Travis County’s extra exemption applies in Williamson or Hays.
Insurance Is a Quote, Not a Statewide Premium
Get quotes for the address. Roof age, claims history, flood zone, and the insurer all move the price. We will not print one Austin insurance dollar amount and call it typical. If the house is in a flood zone, ask whether flood insurance is separate from the homeowners policy.
HOA Dues Belong in the Same Monthly Number
A low tax bill with a high HOA is not a bargain until you add the dues. Special districts and municipal utility districts can add their own tax. Read the resale certificate and the tax bill, not just the listing’s tax estimate.
Do This Before You Tour
Put taxes, insurance, and HOA into the payment, then decide which houses are real. That order is the same one in what to budget before you tour and in cash to close. Start on the buyers page.
Frequently Asked Questions
What is the property tax rate in Austin?
There isn’t one rate. Each property is taxed by its own set of units, and each unit sets its own rate. Look up the address. A homestead exemption can reduce taxable value. It does not replace the rate.
How does the Texas homestead exemption work?
If the house is your primary home, you file for a homestead exemption with the appraisal district after you own it and live in it. The Comptroller lists a $140,000 exemption from school taxes, plus an extra $60,000 if you are 65 or older or have a disability. Confirm those amounts on the Comptroller site before you count on them. Local exemptions, if any, are separate.
How much is homeowners insurance in Austin?
It depends on the house and the insurer. Get quotes. We will not publish one premium and call it the Austin number. Flood insurance, if you need it, is often a separate policy.
Are property taxes and insurance part of the mortgage payment?
Usually yes, through an escrow account, but confirm that on your loan estimate. Budget the full payment either way. An approval that ignored the tax bill is not finished.
Does Texas have a state property tax or a transfer tax?
No state property tax, and no state real estate transfer tax. Local property taxes still apply. Title and lender fees are separate from a transfer tax.
What should I put in the monthly budget before I look?
Principal and interest, property taxes for that address, insurance quotes, and HOA dues if there are any. Then compare houses. The market update is for prices and sales, not for your tax bill.
Want help building the full payment for a specific house? Talk with our team or call / text 512-693-8578.