Texas Mortgage Calculator — Rates, Property Tax & Homestead Exemption
Calculate your Texas mortgage payment including property taxes (~1.8%), PMI, and the Texas Homestead Exemption. See how no state income tax and first-time homebuyer programs affect your payment.
Texas Mortgage Calculator
Results update instantly as you type
Enter Values
Annual Property Taxes
$6,300/yr
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Monthly P&I
$2,486
Monthly w/ Tax & PMI
$3,011
Total Interest
$167,393
Total Cost
$447,393
Texas Property Taxes: $6,300/yr
This adds significantly to your true monthly cost
Loan Balance Over Time
Year by Year
| Year | Balance | Paid | Interest |
|---|---|---|---|
| 1 | $268,871 | $11,129 | $18,697 |
| 3 | $244,216 | $35,784 | $53,695 |
| 5 | $215,981 | $64,019 | $85,112 |
| 7 | $183,644 | $96,356 | $112,427 |
| 9 | $146,611 | $133,389 | $135,047 |
| 11 | $104,199 | $175,801 | $152,287 |
| 13 | $55,627 | $224,373 | $163,367 |
| 15 | $0 | $280,000 | $167,393 |
The Formula
Standard monthly mortgage payment formula. Texas-specific factors include property taxes (highest in the nation at ~1.8% average), no state income tax, and the Texas Homestead Exemption which can reduce school district property taxes.
Variable Definitions
Monthly Payment
Your monthly principal and interest payment. Texas property taxes add significantly to the true monthly cost.
Private Mortgage Insurance
Required when down payment is under 20%. In Texas, FHA loans and USDA loans are popular alternatives to avoid PMI.
Texas Homestead Exemption
Texas law exempts a portion of your home value from school district property taxes. Currently up to $40,000 for general homestead, $100,000 for seniors.
How to Use This Calculator
- 1
Enter the Texas home price — use $350,000 as a starting point for the statewide median.
- 2
Enter your down payment. First-time buyers in Texas can use programs like TSAHC or Texas My First Home.
- 3
Select your loan term. 30-year fixed is most common in Texas.
- 4
Enter the property tax rate. Default 1.8% is the Texas average — your county may vary from 1.0% to 2.5%.
- 5
Review the results: your true monthly cost includes taxes, not just principal and interest.
Common Applications
- Estimate monthly mortgage payments on a Texas home factoring in the state above-average property tax rates and homestead exemption.
- Compare the no-state-income-tax advantage against higher property taxes to understand your true housing cost in Texas.
- Plan your home purchase by exploring TSAHC and Texas Veterans Land Board down payment assistance programs.
Texas has no state income tax but property taxes average 1.8%, among the highest in the US. The Homestead Exemption reduces school district taxes.
Understanding the Concept
Texas is unique in the US housing market because it has no state income tax but relies heavily on property taxes to fund local services. The average effective property tax rate in Texas is approximately 1.8% of home value annually — among the highest in the nation. This means a $350,000 home in Texas costs about $6,300 per year in property taxes alone ($525/month), which is significantly more than the national average of ~1.1%. However, Texas offers a Homestead Exemption that reduces the taxable value of your home for school district taxes. First-time homebuyers should also explore programs like the Texas State Affordable Housing Corporation (TSAHC) and the Texas Veterans Land Board for down payment assistance. Despite the high property taxes, Texas remains attractive due to no state income tax, strong job growth, and relatively affordable home prices compared to coastal states.
Frequently Asked Questions
Sources & References
Related Calculators
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