The rate in context
On a $400,000 home, 1.40% means roughly $5,600 per year in property tax, escrowed monthly, so it lands directly in your payment and your debt-to-income ratio.
Exemptions and notes
A 10% annual cap on homestead appraisal growth and a $100,000 school-district homestead exemption (2023) blunt the high effective rate; there is no income tax.
Sources: Tax Foundation 2026 (2024 ACS); TX Comptroller. County-level rates vary; your county page has local detail.
Counties in Texas
Loan limits by county · Texas overview
FAQ
What is the average property tax rate in Texas?
The average effective property tax rate in Texas is about 1.40%, per Tax Foundation 2026 (2024 ACS); TX Comptroller. Individual counties vary above and below that average.
How do Texas property taxes affect my mortgage?
Taxes are escrowed into your monthly payment, so a higher rate directly reduces how much house you qualify for. A 10% annual cap on homestead appraisal growth and a $100,000 school-district homestead exemption (2023) blunt the high effective rate; there is no income tax.