In Texas, your monthly housing payment is heavily influenced by county property appraisals and school district tax levies. Unlike states where property taxes average under 1%, Texas homeowners typically pay between 1.60% and 2.15% of their appraised home value annually. For example, on a $400,000 home in Harris or Travis County, annual property taxes can reach $7,200 to $8,600 ($600 to $716 per month), rivaling principal and interest payments. However, Texas offers a substantial Homestead Exemption that shields up to $100,000 of your primary residence value from school district taxation. Homeowners insurance in Texas also trends higher than the national median due to hail, windstorms, and Gulf Coast hurricanes. When budgeting in Texas, enter an estimated 1.80% property tax rate and $320/month insurance premium to ensure your pre-qualification calculations reflect true out-of-pocket costs.