Texas Property Tax Explained: What Relocators Pay in 2026

Texas property tax explained with real numbers. The same $450,000 house on four Central Texas lots: from $599 a month to almost $1,000. Read the full article: https://holleyhomesrealty.com/article... Nobody puts that math on the listing. If you are relocating to Central Texas and you keep hearing that Texas property taxes are brutal but nobody will give you an actual number, this is that number. By the end of this, you will be able to estimate the real monthly tax bill on any home in South Austin, Buda, Kyle, or Bastrop before you even speak with a lender. Here is what we cover: How a Texas property tax bill is actually built. There is no state income tax here, so schools, counties, and cities fund themselves this way. Your bill is a stack: school district first and largest, then county, then city if you are inside city limits, then smaller items like the community college and healthcare districts, and on some lots, one extra line that changes everything The $140,000 homestead exemption most out-of-state buyers have never heard of. If the home is your primary residence and you file one free form, the school district taxes you as if the home were worth $140,000 less. That is roughly $1,400 to $1,800 a year, and if you are 65 or older or disabled, there is an additional $60,000 stacked on top Why the tax number on the listing is never your number. The 10% cap on taxable value belongs to the seller. When you buy, the appraisal district resets to full market value and your bill starts completely over. This is the single most common tax surprise I see with out-of-state buyers The same $450,000 house on four real lots, using 2025 certified rates. An established South Austin 78748 neighborhood in Austin ISD runs about $7,200 a year, roughly $599 a month, near a 1.6% effective rate. An established Buda resale in Hays CISD lands within two dollars of it. A new build in Sunfield in Buda, which sits in a MUD adding about $0.90 per $100 of value, jumps to about $9,700 a year or $806 a month. A new build in 6 Creeks in Kyle, which advertises one of the lowest base rates in town, carries a PID assessment of $3,000 to $4,200 a year that never shows in the advertised rate, landing you between $900 and $1,000 a month The two traps. New construction escrow, where the county may tax the lot dirt only in year one and your payment spikes in year two, and simply forgetting to file your homestead exemption. Texas does let you file late and backdate up to two full years The five-step appraisal protest playbook, from the April notice to the May 15 deadline to the informal review and the ARB hearing Easton Park in Southeast Austin runs combined rates pushing 2.5% to 2.7%, and Persimmon in Buda carries a PID near the top of the entire list. I like these communities, and I have said so on this channel. Just know your real monthly number before you fall in love with the floor plan, not after. One non-negotiable rule before you put an offer on paper: get the certified total tax rate and any PID assessment for that specific lot in writing. Not the neighborhood average. The lot. I am a real estate broker, not an appraiser, tax adviser, or attorney. This is general information from public data, not formal tax or legal advice. Rates change yearly, and every lot is different, so always verify your exact numbers with your county appraisal district. I understand now may not be the right time, and I never want to be pushy; just know that I am here if you have questions, would like to start planning, or need anything. Free MUD and PID Tax Guide: https://holleyhomesrealty.com/MUD-PID... Free Central Texas Relocation Guide: https://holleyhomesrealty.com/moving-... Watch next: Austin MUD and PID Tax Explained, The Hidden Cost of New Homes - Austin MUD and PID Tax Explained: The Hidd... SEARCH HOMES Search new construction: https://a.nhb.app/u/brandon-holley Search the MLS: https://app.unlockmls.com/2337C713 WORK WITH BRANDONBrandon Holley — Broker/Owner, Holley Homes Realty South Austin | Kyle | Buda | Bastrop 512.487.9242 | [email protected] Timestamps 0:00 The same house, two very different tax bills 1:40 What homes cost right now (July 2026) 2:47 How a Texas property tax bill is built 3:26 The $140,000 homestead exemption 4:14 Why the listing's tax number is not your number 5:00 One $450K house on four real lots 7:49 Two traps: escrow and the homestead filing 9:25 How to protest your appraisal, step by step 10:50 Which neighborhood fits your situation 12:20 Is the tax bill a dealbreaker? The honest answer #TexasPropertyTax #AustinRealEstate #HomesteadExemption #MUDTax #MovingToTexas