💰 Houston Property Taxes: How Texas Compares to California

If you’re considering a move to Houston, Texas, or anywhere in the Lone Star State, one of the most common questions you might ask is:

“How do Texas property taxes compare to states like California?”

It’s a smart question — especially for buyers relocating from higher-cost areas like Los Angeles, San Francisco, or San Diego.

While Texas property tax rates are generally higher than the national average, the overall cost of living and lack of state income tax often make up the difference. Let’s break it down so you can understand what to expect when purchasing a home in Houston, TX.

🏡 Understanding Property Taxes in Texas

Texas doesn’t have a state income tax, so property taxes are one of the main ways local governments fund schools, roads, and public services.

Each county, city, and school district sets its own tax rate, so your total property tax bill depends on where you live.

📊 Average Property Tax Rate in Texas (2025):

• Texas Statewide Average: ~1.60% of assessed home value

• Harris County (Houston area): 2.2%–2.8%

• Galveston County: 1.8%–2.3%

• Fort Bend County: 2.3%–2.7%

That means for a $350,000 home in the Houston metro area, annual property taxes might range between $6,000 and $9,000 per year depending on the exact jurisdiction.

🌴 California Property Taxes: Lower Rate, Higher Prices

California’s property tax system works very differently thanks to Proposition 13, which limits annual tax increases.

📉 Average Property Tax Rate in California:

• Statewide Average: ~0.75% of assessed value

That looks great on paper — but there’s a catch. Home prices in California are much higher than in Texas.

Example Comparison:

So while Texas has a higher tax rate, the lower home prices and no state income tax usually mean buyers keep more of their money overall.

🧾 Houston’s Homestead & Tax Exemptions

Texas homeowners benefit from several property tax exemptions that can lower their annual bill:

• Homestead Exemption: Reduces the taxable value of your primary residence by up to $100,000 statewide (as of 2023 reform).

• Over-65 or Disabled Exemption: Provides additional tax reductions for seniors or disabled homeowners.

• School District Caps: Limit how much your school taxes can increase each year once you qualify for the senior or disabled exemption.

Pro Tip: When you buy a home in Houston, be sure to file for your homestead exemption as soon as possible. It’s free, and it can save you hundreds — even thousands — every year.

📍 Why Houston Still Wins for Affordability

Even with higher property taxes, Houston consistently ranks among the most affordable major metro areas in the U.S.

Here’s why:

• No state income tax (a big contrast to California’s 9.3%–13.3% income tax bracket).

• Lower housing costs: Houston’s median home price is less than half of Los Angeles or San Francisco.

• Lower everyday expenses: Groceries, gas, and utilities are all below national averages.

When you add it all up, many families relocating from California find that their total cost of living drops 25–40% after moving to Texas — even with higher property taxes.

🏘️ Property Taxes Across Greater Houston

The Houston metro area includes several counties, and each has slightly different tax rates:

Each county publishes its rates annually, so checking before you buy is important — especially if you’re comparing different suburbs.

💬 The Bottom Line

If you’re relocating from California to Texas, here’s the key takeaway:

✅ Texas = higher property taxes, lower home prices, and no state income tax
✅ California = lower property taxes, higher home prices, and high income tax

For most families and professionals, the move to Houston means more space, more savings, and a better overall quality of life.

📞 Thinking About Buying a Home in Houston?

Whether you’re moving from California or anywhere else, The Freund Group at FIV Realty can help you navigate the numbers — from property taxes to neighborhood affordability.

We’ll help you:

• Compare costs between your current city and Houston

• Understand tax rates by county and school district

• Find the perfect home in your budget

📲 Contact The Freund Group today to start your Houston relocation journey — and discover why so many Californians are making the move to Texas.