Texas has long prided itself on its reputation as having lower taxes than other states in the country. While it is true that it does not have any state income tax, nor any property taxes on vehicles, Texas does actually have one of the highest property taxes in the country. It is among the top five states with the highest property taxes in the United States, and is actually the only southern state on the top ten list of states with the highest property taxes. A person living in Texas can expect to pay $3, 327 in property taxes throughout the course of the year, which is almost 60% higher than the property taxes the average American will pay in any other part of the country. Texas joins a group of mostly northern states, such as Rhode Island and Connecticut, as one of the states that taxes property at the highest rate. This is despite the fact that Texas has a far lower population density than many northern states. Still, some parts of the state remain more affordable than others. The Houston property tax is wide and allows people of all incomes to find a house that is right for them.
What Is the Property Tax Rate In Houston?
Property taxes vary throughout a state as large as Texas, though. The taxes levied in a rural area are not the same as in a major urban area. Houston, TX, reflects this fact. Houston is one of the state’s largest cities and is a highly densely populated metropolitan region. Although it is not as expensive to live in as Dallas or Fort Worth, there are many parts of Houston that are much more expensive than many parts of the state, such as smaller San Antonio. Residents of the city earn less than many other parts of the state, with a median household income of $45, 353 compared to the state median household income of $51, 704. Despite this, the city’s median list price for a home is $349,000. This number can be slightly deceptive. Houston is a massive region with some parts of the city far higher in value than others. The number of homes in inventory is significant and there are many homes in the $150,000 through $200,000 range available.
However, to determine the total tax rate on property, it is best to consider the median list price and compare that against other major cities in the state. Because of the great diversity in home values throughout the city, the tax rate can go as low as 1.1% and as high as 1.5%. This places the total tax rate floor at among the lowest in the state, and the total tax rate among the highest, demonstrating the wide difference in property values throughout the city. This means that median income earners can still find plenty of areas around Houston that provide not affordable house listings, but also reasonable total tax rates.
How Does Houston Compare to San Antonio?
In comparison to San Antonio, though, Houston is more expensive in terms of the median list price. A home in San Antonio typically enters the market at a far lower price point, on average about $230,000. San Antonio is very blue collar town with a lower cost of living and does not have the diverse income range that Houston does. The median household income for individuals is $50, 502. This is part of an overall trend in San Antonio in which cost of living, income, and house listings all fall within a much narrower window than Houston. This is also reflected in the tax rates. At the lower end of the tax range, the tax rate for a property in San Antonio is 1.2%, higher than the tax floor in Houston. At the upper end, the tax rate is 1.4%, lower than the tax ceiling in Houston. Living in Houston may mean a lower floor on property taxes, but on average the home you buy will be more expensive than a home in San Antonio, evening out the differences.
How Does Houston Compare to Dallas?
A comparison of Houston to Dallas, TX, is actually much more appropriate. Dallas, like Houston, is a massive metropolitan area than encompasses a wide range of income earners from all ends of the income earning range. Like Houston, there are a number of extreme income earners that help to drive the median list price of homes upward, to $399,000 throughout the Dallas area. This makes the median list price for a home higher than both San Antonio and Dallas. However, like Houston, Dallas maintains a higher tax ceiling at 1.5%. Unlike Houston, the city also has a higher tax floor, of 1.3%. This makes property taxes in Dallas among the highest in the entire state. Dallas emerges not only as a more expensive place to find a home listed, but also a more expensive place to live as a result of higher property taxes.
Houston is a compromise between the smaller city of San Antonio and the larger metropolis of Dallas. Houston’s property taxes encompass a wider range and though median home listings are higher than in San Antonio, the number of homes on the market makes it possible to find a more budget friendly home in a house that commands a lower list price. If you are looking for a place in Texas to find a home that combines reasonable tax rates with affordable house prices, then Houston is the place to buy.
2 Point Highlight
The Houston property tax is wide and allows people of all incomes to find a house that is right for them.
If you are looking for a place in Texas to find a home that combines reasonable tax rates with affordable house prices, then Houston is the place to buy.
