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Own Luxury Homes® Texas No-Income-Tax Real Estate Index™
Own Luxury Homes® Texas No-Income-Tax Real Estate Index™: Texas 0% income tax like Florida, but effective property tax rates 1.6-2.5% vs. FL 0.83%. Annual property tax on $500K home: TX $8,000-$12,500 vs. FL $3,500-$6,000. Texas homestead exemption: $100,000 (vs. FL $50,000 + SOH 3% cap). FL SOH 3% cap compounds to $7,605/yr savings at year 20 vs. TX 10% cap. TX average HO insurance inland: $2,800-$4,500/yr vs. FL statewide $8,458/yr. Own Luxury Homes® 12-Point Agent Integrity Audit™.
Own Luxury Homes® Texas No-Income-Tax Real Estate Index™
Texas, like Florida, has no state income tax — but unlike Florida, Texas has some of the highest property tax rates in the nation. For buyers evaluating a Texas vs. Florida relocation, the headline "no income tax" is the same in both states. What differs substantially is how that tax advantage is offset by property taxation, and what the net financial comparison looks like for different income profiles. This Index quantifies the Texas property tax reality, compares it to Florida, and establishes the framework for the TX vs. FL relocation decision.
01 — Texas Property Tax vs. Florida: The Net Comparison
Both Texas and Florida impose zero state income tax. The difference is in how they fund state and local government: Florida relies on sales tax, tourism taxes, and documentary stamp taxes; Texas relies heavily on property taxation, producing some of the nation’s highest effective rates.
| Financial Metric | Texas (Dallas/Austin) | Florida (Tampa/Orlando) | Net Advantage |
|---|---|---|---|
| State income tax rate | 0% | 0% | EQUAL |
| Effective property tax rate (est.) | 1.6–2.5% | 0.7–1.2% | Florida: ~0.83% lower effective rate |
| Annual property tax on $500K home | $8,000–$12,500 | $3,500–$6,000 | Florida: ~$4,350 less/yr average |
| Annual property tax on $1M home | $16,000–$25,000 | $7,000–$12,000 | Florida: ~$8,500 less/yr average |
| Homestead exemption | $100,000 off appraised value (2023 reform) — significant | $50,000 off assessed value — plus SOH cap | MIXED: TX has larger dollar exemption; FL has SOH cap that compounds indefinitely |
| Assessment cap (like FL SOH) | 10% annual cap on homestead appraisal increases | 3% annual SOH cap | Florida: more protective cap (3% vs 10%); compounds enormously over time |
| State estate tax | None | None | EQUAL |
| Jock tax / athlete income tax | 0% in TX (Dallas Cowboys, Houston Texans, etc.) | 0% in FL (Miami Dolphins, Tampa Bay Buccaneers, etc.) | EQUAL |
| Homeowner’s insurance (avg) | ~$2,800–$4,500/yr statewide | ~$8,458/yr statewide (higher due to hurricane/storm exposure) | Texas: lower average HO insurance in most inland markets |
| Winter weather risk | Ice storms / freezing events (2021 Winter Storm Uri precedent) | Hurricane risk | MIXED: different risk profiles |
| Property tax figures are estimates based on combined county, municipal, and school district levies. Effective rates vary significantly by specific city and school district within Texas. Florida homeowner’s insurance average from Insurify 2026. Texas insurance varies significantly by location and coverage. | |||
02 — Texas Property Tax by Major Metro
| Metro | Effective Rate Est. | Annual Tax on $500K Home | Annual Tax on $1M Home | Notable Context |
|---|---|---|---|---|
| Austin / Travis County | 1.8–2.2% | $9,000–$11,000 | $18,000–$22,000 | Travis County among the highest-rate large counties in TX; school district levies significant |
| Dallas (Dallas County) | 1.7–2.0% | $8,500–$10,000 | $17,000–$20,000 | Highland Park ISD (independent school district) has high quality but higher levy in Park Cities |
| Houston (Harris County) | 1.9–2.3% | $9,500–$11,500 | $19,000–$23,000 | Harris County: highest flood risk in Texas + high property tax rates; dual burden |
| San Antonio (Bexar County) | 1.5–1.9% | $7,500–$9,500 | $15,000–$19,000 | Lower cost of living moderates the absolute tax dollar amount |
| Fort Worth (Tarrant County) | 1.7–2.0% | $8,500–$10,000 | $17,000–$20,000 | Slightly lower than Dallas; growing market with corporate relocations |
| Frisco / Plano (Collin County) | 1.6–1.9% | $8,000–$9,500 | $16,000–$19,000 | High-quality school districts command higher levies; strong corporate employer base |
03 — Texas vs. Florida: Who Should Choose Which
• The buyer is relocating for a specific employer in Austin, Dallas, or Houston and does not need or want a coastal lifestyle
• The buyer has no prior homestead cap benefit to port; starting from zero, Texas’ $100K homestead exemption is larger than Florida’s $50K
• The buyer values the Texas cultural and business environment: major sports franchises, oil and gas economy, technology sector, no state income tax
• The buyer does not want hurricane risk or the associated insurance costs ($8,458/yr FL average vs. $2,800-$4,500/yr TX inland average)
• The buyer is a long-term homeowner: the Florida SOH 3% cap compounds over time, while Texas’ 10% cap provides less protection in appreciation markets
• The buyer wants coastal lifestyle: Florida has 1,350 miles of coastline; Texas has 367 miles, and Gulf Coast Texas is significantly less developed
• The buyer is a professional athlete or high endorsement earner: both states are 0% income tax, but Florida’s athlete domicile infrastructure (established community, privacy, luxury market depth) is more mature
• The buyer has an aging roof or coastal property: Florida’s insurance crisis is more acute, but a buyer with a new inland Florida home in Orange County faces far lower insurance than a Houston buyer in a flood zone
• The buyer is a retiree: Florida’s lower property tax rates, particularly after the SOH cap compounds, typically produce lower carrying costs in retirement than Texas’ high-rate environment
Brown, Ryan. “Own Luxury Homes® Texas No-Income-Tax Real Estate Index™.” Own Luxury Homes®. https://www.ownluxuryhomes.com/markets/texas/research-indices/texas-no-income-tax-real-estate-indexMedia: ownluxuryhomes.com/connect · 407-900-7030
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— Ryan Brown, Principal Broker & CEO, Own Luxury Homes® (FL License BK3626873)