Texas Mortgage Calculator
Get an accurate monthly payment estimate for a home in Texas — including property taxes, homeowners insurance, and PMI if your down payment is under 20%. Texas property tax bills run higher than most of the country, so we build that in by default instead of leaving you to guess.
What makes a Texas mortgage payment different
If you're moving to Texas from a state like California or New York, your mortgage math works differently than you're probably used to. Texas has no state income tax, which is the trade-off most people have heard about — but the flip side is that the state leans harder on property taxes to fund schools and local services.
The statewide effective property tax rate averages around 1.63%, well above the national average of roughly 1%, and in some counties it climbs past 2.5% once you stack county, city, school district, and any municipal utility district (MUD) taxes together. That's the single biggest reason a Texas mortgage calculator needs to handle property tax seriously instead of using a flat national default — a generic calculator will under-quote your real payment by a few hundred dollars a month in counties like Fort Bend or Tarrant.
On the upside, Texas doesn't charge a separate mortgage tax or state transfer tax, and title insurance rates are set by the state rather than negotiated, so you're not at risk of overpaying on that line item the way you might be elsewhere.
A real example
Say you're buying a home in the Dallas–Fort Worth area for $284,000, putting 10% down ($28,400), with a 30-year fixed loan at around 6.5%. Your principal and interest alone would run close to $1,620 a month. Add a combined property tax rate of about 2.1% for that area (Dallas and Tarrant counties both run above the state average), and you're looking at roughly $497 a month in taxes.
Homeowners insurance in Texas tends to run higher than the national average too — coastal and Gulf-adjacent counties especially, because of hurricane risk — so budget another $300–$350 a month depending on location. Since you're under 20% down, PMI adds roughly $120–$160 a month until you cross that equity threshold.
👉All together, a buyer in this scenario is realistically looking at a monthly payment in the $2,550–$2,650 range, not the $1,620 a bare-bones principal-and-interest-only calculator would show you.
Property taxes vary a lot by county — don't use one number for the whole state
This is the part most calculators skip entirely. Travis County (Austin) and Collin County run some of the highest combined rates in the state, often 2.0–2.5%, largely because of strong school district levies. Harris County (Houston) tends to run lower in some pockets, closer to 1.5–1.8%, but varies block by block depending on which of the dozens of overlapping taxing entities apply.
If you know which county you're buying in, swap in that county's rate using the calculator's advanced options instead of relying on the statewide average — it'll change your estimate by hundreds of dollars a month either direction.
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First-time buyer help in Texas
The Texas Department of Housing and Community Affairs (TDHCA) runs down payment assistance and below-market-rate loan programs for first-time and repeat buyers who meet income limits, and many of these can be paired with FHA, VA, or conventional loans. If you're a first-time buyer, it's worth checking your eligibility before assuming you need the full 20% down — TDHCA programs frequently get overlooked because national mortgage sites don't mention state-level programs at all.
A practical tip
Because Texas property taxes are reassessed and can rise year over year as home values climb, it's worth running your numbers again any time you get a new appraisal notice — your escrow payment can jump even if your interest rate and loan balance haven't changed. Protesting an over-assessment is common practice in Texas and can meaningfully lower your annual bill if you catch it early.
Frequently Asked Questions
Does this calculator include Texas property taxes?
Yes. It defaults to the Texas statewide average of about 1.63%, and you can enter your specific county's rate in advanced options for a more accurate number, since rates range from under 1% to over 2.5% depending on where you're buying.
Why are Texas mortgage payments higher than the interest rate alone suggests?
Texas has no state income tax, so the state relies more heavily on property taxes. Combined with no rate cap on local taxing entities, your escrow portion (taxes + insurance) can add 30–40% on top of your principal and interest payment.
Is there a mortgage tax or transfer tax in Texas?
No. Texas doesn't charge a state mortgage tax or real estate transfer tax, which is one cost you won't have to factor in compared to states like New York.
What down payment do I need in Texas?
There's no state-specific minimum — conventional loans typically want 3–20% down, FHA loans go as low as 3.5%, and VA loans can offer 0% down for eligible veterans. TDHCA also offers down payment assistance programs for qualifying first-time buyers.
How accurate is this calculator?
It gives a close estimate based on current average rates and Texas tax data, but your actual rate, insurance quote, and exact county tax rate will vary by lender and address — treat this as a planning tool, not a final number.