Texas Mortgage Calculator

Texas has no state income tax, which means your take-home pay is higher than in states like California or New York. However, Texas partially offsets this with higher property taxes — averaging 1.60% of home value annually, one of the highest rates in the US. A lender will still calculate your debt-to-income ratio using gross income, so the income tax advantage primarily helps with monthly cash flow, not qualification. Source: Tax Foundation State Income Tax Rates (https://taxfoundation.org/data/all/state/individual-income-tax-rates/).

Texas property taxes average 1.60% statewide but vary significantly by county. Travis County (Austin) averages around 1.75%, Harris County (Houston) around 2.00%, and Dallas County around 1.85%. More rural counties tend to be lower. Property taxes are reassessed annually by the county appraisal district and can rise substantially in fast-appreciating markets. Texas does offer a homestead exemption of at least $100,000 off your home's taxable value for primary residences as of 2023. Source: Texas Comptroller (https://comptroller.texas.gov/taxes/property-tax/).

Texas has no state or county documentary transfer tax, making it one of the more seller-friendly states for closing costs. Buyers pay only recording fees, which average $150–$250. There is also no mortgage excise or intangible tax on the loan amount. The main buyer closing costs in Texas are lender fees, title insurance (typically $1,500–$3,000), and escrow fees. Source: Texas Department of Insurance (https://www.tdi.texas.gov).

The 2026 FHFA conforming loan limit in Texas is $806,500 for all counties — Texas has no high-cost counties that qualify for elevated limits. Loans above $806,500 are classified as jumbo loans and typically require a minimum 20% down payment, credit score of 700+, and 12 months of cash reserves. Source: FHFA 2026 Conforming Loan Limit Table (https://www.fhfa.gov/data/conforming-loan-limit).

The two main programs are through TSAHC and TDHCA. TSAHC's Home Sweet Texas program provides 3–5% down payment assistance as a grant that never needs to be repaid — no income limit for homes in targeted areas. TDHCA's My First Texas Home offers up to 5% down payment assistance as a low-interest loan. Income limits for both programs are roughly $85,000–$120,000 depending on household size and county. Visit https://www.tsahc.org or https://www.tdhca.state.tx.us for current eligibility details.