Texas Property Taxes and Your Mortgage Payment: What to Expect

The short answer

Texas has no state income tax, but property taxes are a real part of homeownership here. Your monthly payment is not just principal and interest. It usually includes property taxes and homeowners insurance too.

The four parts of a typical payment

• Principal and interest on the loan.
• Property taxes, which vary by county, city and school district.
• Homeowners insurance.
• Mortgage insurance or HOA dues, if they apply.

What is escrow?

Many lenders collect a portion of your taxes and insurance each month in an escrow account and pay the bills for you when they are due. It keeps you from facing one big bill and keeps the lender protected.

Plan for the number, not the listing

Tax rates differ across Plano, Frisco and surrounding areas, and a home's assessed value can change. Before you fall for a house, ask us to estimate the full payment, including taxes, so there are no surprises.

Frequently asked questions

Can my taxes go up after I buy?

Yes. Appraised values and tax rates can change, which can change your escrow payment. Texas homeowners may also qualify for exemptions such as the homestead exemption, so be sure to file for it.

Want a real payment estimate? Call (469) 414-5554.

By Kelly Welton, Mortgage Broker (NMLS #314183), Mohave Mortgage Texas Branch. Mohave Mortgage NMLS #1830581 · Texas Branch NMLS #2690682 · Equal Housing Opportunity. General information only, not tax or financial advice or a commitment to lend. Programs, rates and guidelines vary and change.