Texas property taxes fund local schools, cities, and counties - and rates vary significantly by location. A $500,000 home in one city might cost $2,000 more per year in taxes than the same home across the city line. Knowing these differences helps you make smarter buying decisions.

The good news: Texas offers generous exemptions. The homestead exemption alone can save you thousands annually, and seniors over 65 qualify for additional savings. This calculator factors in these exemptions to give you a realistic estimate.

Remember: property taxes are based on assessed value, not purchase price. Your home will be reassessed annually by the county appraisal district, but Texas law limits increases to 10% per year on homesteaded properties.