property tax report

Texans are paying the 7th highest property taxes in the U.S., per report

At least Texas doesn't have New Jersey's tax rate.

Photo by Kostiantyn Li on Unsplash

Tax season is here, and Texas homeowners might be reeling at the thought of a multi-thousand dollar property tax bill. However, Texans can find some consolation in the fact that their property taxes are lower than in six other U.S. states, according to WalletHub's 2024 property tax report.

The median value of a house in the Lone Star State is $238,000, the report found, which is a $35,400 increase from the state's median home value in 2023. Once a homeowner factors in Texas' effective real estate tax rate of 1.63 percent (compared to 1.74 percent last year), that means the average Texan is paying $3,872 in property taxes.

"Some states charge no property taxes at all, while others charge an arm and a leg," said WalletHub analyst Cassandra Happe. "Americans who are considering moving and want to maximize the amount of money they take home should take into account property tax rates, in addition to other financial factors like the overall cost of living, when deciding on a city."

Texans can be glad they don't live in New Jersey, which WalletHub maintains has the worst property tax rate in the nation for the second year in a row. New Jersey homeowners are paying over $9,300 annually for their homes, based on a median home value of $401,400 and an effective tax rate of 2.33 percent.

Instead, Texas homeowners can pine after Hawaii's property tax rate, as the Aloha State came out on top with the lowest property tax rate in the country for the second consecutive year. Hawaii homeowners have an effective tax rate of 0.27 percent, which on a high median home value of $764,800, amounts to only $2,054 in property taxes.

The states that pay the lowest real estate property taxes are:

No. 1: Hawaii – 0.27 percent
No. 2: Alabama – 0.39 percent
No. 3: Colorado – 0.49 percent
No. 4: Nevada – 0.50 percent
No. 5: South Carolina – 0.53 percent
No. 6: West Virginia, Louisiana, Delaware, Utah (tied) – 0.55 percent
No. 10 – Arizona, Idaho, and District of Columbia (tied) – 0.56 percent

While Texas homeowners feel the sting of their property taxes, at least they can find some comfort in not having to worry about vehicle property taxes. Texas vehicle owners only have to pay a 6.25 percent tax rate on the purchase price of a car with their local tax assessor-collector, but they do not have to pay any annual vehicle property taxes.

Plus, it’s not just Texas – WalletHub determined that 23 other states and Washington, D.C., also do not have vehicle property tax rates. Louisiana has the lowest rate out of the remaining states that do pay vehicle property taxes, at 0.10 percent. The state with the highest vehicle property tax rate is Virginia, at 3.97 percent.

reports texas wallethub taxes property taxes in texas

spacious memorial mansion

Striking French-inspired Houston estate hits market for $12.75 million

TK Images for Martha Turner Sotheby’s International Realty

412 Timberwilde Lane sits on more than two acres in Hunters Creek Village and is on the market for $12.5 million

A magnificent estate awaits in one of Houston’s most desirable neighborhoods. 412 Timberwilde Lane is a stunning brick and limestone home, inspired by French country manor houses. It’s on the market for $12.75 million and represented by Jay Monroe and Stephen Warrell ofMartha Turner Sotheby’s International Realty

Nestled on nearly 2.5 acres of meticulously manicured grounds in exclusive Hunters Creek Village, this home blends old world elegance with modern amenities, including 24/7 private security. The grand foyer’s soaring ceiling sets the tone upon entry, announcing that 412 Timberwilde Lane is something special.

Consider the formal library, with its rich, paneled walls and cross-beam ceiling, and the spacious dining room with its cozy fireplace. The living room offers breathtaking views of the rear gardens, pool, cabana, and tennis courts. Just off the kitchen, a light-filled breakfast room is a perfect place for morning coffee and admiring the grounds.

The primary suite is the embodiment of luxury, with dual bathrooms and ample closet space, ensuring comfort and convenience. This private oasis is a place to unwind and relax.

The home’s second floor offers a floor plan that can be tailored to suit any lifestyle. The bedrooms are generously sized with large closets and private baths. A playroom with a built-in playhouse castle makes for a perfect spot for kids’ imaginations to run wild. Other rooms could be utilized for a second home office, exercise room, yoga retreat, crafting space, or whatever else a family might need.

The third floor offers a game room featuring a wet bar, billiards area, and a big-screen TV, making it the ultimate place to relax and have fun with family and friends. The outdoor areas include an in-ground pool and summer kitchen, perfect places.

This one-of-a-kind estate offers an array of amenities for living and entertaining. Its location is both convenient to the city and a restful retreat.

Photo by TK Images for Martha Turner Sotheby’s International Realty

412 Timberwilde Lane sits on more than two acres in Hunters Creek Village and is on the market for $12.5 million.

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