Why are Texas property taxes higher than other states?

Texas has 0% state income tax. Local public schools, emergency services, and county infrastructure are funded primarily through local property taxes, which typically range from 2.0% to 2.5% of assessed value.

What is a Texas MUD tax?

A Municipal Utility District (MUD) is a political subdivision authorized to finance water, sewage, drainage, and infrastructure in master-planned communities. MUD tax rates typically range from 0.3% to 1.2% and decrease over time as bonds are paid off.

Do I need windstorm insurance in Galveston County?

Properties in Galveston County and coastal tier-1 zones generally require windstorm and hail insurance through the Texas Windstorm Insurance Association (TWIA) or private carriers, in addition to standard hazard and flood insurance.

Homebuyer Payment Calculator

Monthly Mortgage & Payment Calculator

Estimate your real monthly payment in Greater Houston and Galveston County—including principal, interest, local property taxes, homestead savings, and homeowners insurance.

MONTHLY PAYMENT ESTIMATOR

Estimated Monthly Payment

See what your real monthly payment looks like—including loan principal, interest, local Texas property taxes, and homeowners insurance.

Home Price

$100K$1.25M$2.5M+

Down Payment

$110,00020%

Interest Rate

Loan Term

Where is the home located?Est. Tax Rate: 1.84%

Pick an area to use typical local property tax and insurance rates:

I will live in this home as my primary residenceApplies the Texas $100,000 Homestead Tax Exemption (saves ~$153/mo)

COASTAL WINDSTORM (TWIA / WPI-8) & FLOOD TIER0.85%/yr

ESTIMATED MONTHLY PAYMENT

$3,936/ month

$440,000 loan amount (80% financed) at 6.5% for 30 years

Principal & InterestYour mortgage loan payment

$2,781/mo

Property Taxes1.84% rate · Homestead discount applied

$690/mo

Homeowners & Wind Insurance0.85% Mainland hazard & wind estimate

$390/mo

HOA FeesNeighborhood association dues

$75/mo

✓Includes $153/mo in estimated savings from the Texas $100,000 Homestead Exemption.

Get Pre-Approved or Custom Rate Quote

TEXAS EQUITY & LEASE COMPARISON

Buying vs. Renting Calculator

Compare the true cost of renting against building home equity in Greater Houston, Clear Lake, and Galveston County—factoring in the Texas $100,000 Homestead Exemption and annual rent increases.

Current Monthly Rent$2,600 / mo

Target Home Purchase Price$425,000

Down Payment (%)10% ($42,500)

Planned Time in Home5 Years

5-YEAR OUTCOME COMPARISON

Buying builds ~$165,177 in equity

Total Rent Paid (5 Yrs)

$167,309

$0 Equity Retained

Estimated Homeowner Equity

$165,177

Est. $3,217/mo PITI

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Lock in your true buying power & custom Texas rate in under 3 minutes

Same-Day Pre-Approval Letters · Conventional, Coastal Jumbo, VA & Investor DSCR Loans

TEXAS ESCROW & TAX GUIDANCE

Understanding Your True Monthly Payment in Texas

Unlike other states, your monthly Texas mortgage payment is heavily shaped by local property tax rates (including MUD and PID districts) and coastal hazard insurance (windstorm and flood). The Legacy Group calculates these exact costs before you write an offer—saving you hundreds per month in unexpected escrow surprises.

TAX CODE INSIGHT

Texas Homestead Exemption

Texas primary homeowners receive a $100,000 exemption on school district property tax valuations, along with a 10% annual appraisal cap. Our advisors help you file this upon closing.

DEVELOPMENT BONDS

MUD & PID Trajectories

Master-planned communities like Lago Mar, Meridiana, and Pomona feature Municipal Utility District bonds. As rooftops fill, MUD rates routinely decrease over time.

COASTAL HAZARD

Coastal Insurance Due Diligence

For coastal enclaves in Clear Lake, Kemah, and Galveston, our team helps buyers verify flood zones, insurance requirements, and property condition before writing an offer.