Texas mortgage calculator
Prefilled with Texas’s numbers, not national averages. The effective property tax rate here is 1.63% and the average homeowners premium is about $4,400 a year. Both are already in the calculator below.
Texas mortgage calculator
Principal and interest schedule
Tax and insurance are collected alongside the loan but are not part of it, so they are excluded here.
What Texas actually costs a homeowner
Among the highest rates in the country and no state income tax; a large mandatory school district homestead exemption offsets part of it.
On the state median home value of $260,400, the property tax bill works out at roughly $4,245 a year, or $354 a month before anything else. That is above the national effective rate of 0.86% — 1.9 times the US average.
Insurance is the other half of the escrow payment. At about $4,400 a year, Texas sits above the national average of roughly $2,400. Together, tax and insurance add around $720 a month to the loan payment on a median-priced home here.
Why your bill will differ
The figure above is a state average, and property tax is set locally. Two houses of the same value in different counties of Texas can carry bills that differ by thousands. Check your county assessor before treating any estimate as final, and check whether a homestead exemption applies to you — in most states it does, and in several it is substantial.
A high property tax state
Texas sits in the top tier nationally, 6th of 51 by effective rate. At 1.63% the tax bill is a genuine constraint on what you can borrow: lenders count it in your debt-to-income ratio, so a $4,245 annual bill reduces your purchasing power by roughly $54,417 of loan at current rates. Buyers moving here from a low-tax state routinely find they qualify for less house than they expected.
Insurance is the bigger problem
At roughly $4,400 a year, homeowners insurance in Texas costs more than the property tax bill on a median home. It is also the volatile half: tax assessments move on a schedule, premiums move after a bad season. Budget for renewal increases rather than treating today’s quote as fixed, and get a quote on the specific address before you are under contract — carrier appetite varies street by street here.
Tax and insurance are close to balanced
About $4,245 in tax against $4,400 in insurance, so neither dominates the escrow payment. Together they add roughly $720 a month before any principal or interest — the part of a housing budget that does not fall as you pay the loan down.
Stepping up from the median
At $390,000 — about half again the Texas median — the annual tax becomes $6,357 and the escrow portion of the payment rises to roughly $896 a month. With 20% down at 6.5% over thirty years, the all-in payment is about $2,868.
Comparison with neighbouring states
Texas and its neighbours
| State | Effective rate | Median home value | Median tax bill |
|---|---|---|---|
| Texas | 1.63% | $260,400 | $4,245 |
| Vermont | 1.78% | $272,400 | $4,849 |
| New Hampshire | 1.77% | $367,000 | $6,496 |
| Nebraska | 1.54% | $205,600 | $3,166 |
| New York | 1.54% | $384,100 | $5,915 |
Effective rate is median real-estate tax paid divided by median home value. Insurance figures are broad state averages and move quickly, especially on the Gulf coast. Both are estimates for orientation, not quotes.
Tax and insurance by price in Texas
| Home price | Annual tax | Tax / mo | Insurance / mo | Escrow / mo |
|---|---|---|---|---|
| $150,000 | $2,445 | $204 | $367 | $570 |
| $250,000 | $4,075 | $340 | $367 | $706 |
| $350,000 | $5,705 | $475 | $367 | $842 |
| $500,000 | $8,150 | $679 | $367 | $1,046 |
| $750,000 | $12,225 | $1,019 | $367 | $1,385 |
Property tax at the Texas effective rate of 1.63%. Insurance held at the state average, which understates it on larger homes.
Guides that explain this
Written with the same engine, so every figure agrees with the calculator.
The first-time buyer's mortgage guideWhat lenders really check, how much deposit you need, every closing cost itemised, and why your payment jumps in year two.12 min read
APR vs interest rate: what actually separates themWhat separates APR from the interest rate, which fees are included, and why APR quietly flatters a loan you will not keep for its full term.8 min read
How your credit score sets your interest rateWhat a credit score is built from, how score bands translate into real rate differences and dollars, and which actions move a score quickly versus slowly.10 min read
Questions people actually ask
What is the property tax rate in Texas?
The effective rate is about 1.63%, measured as median real-estate tax paid divided by median home value. On the state median home value of $260,400 that is roughly $4,245 a year. Local rates vary considerably within the state.
How much is homeowners insurance in Texas?
The state average runs around $4,400 a year, above the national average of roughly $2,400. Premiums vary widely by construction, claims history and distance from the coast.
What is the monthly payment on a median-priced home in Texas?
With 20% down on the $260,400 median value at 6.5% over 30 years, principal and interest come to about $1,317 a month, plus roughly $720 for tax and insurance.