Texas homebuyers are grappling with some of the highest property tax rates in the nation, as a new report from Redfin reveals that property tax bills have increased since 2019 in nearly every major U.S. metro area. While states like New York and New Jersey hold the title for the highest median property taxes, with Nassau County, NY, topping the list at $905 per month, Texas cities such as Austin are also feeling the pinch. In Austin, the effective property tax rate stands at 1.8%, making property taxes a significant burden for residents, accounting for about 20% of the median housing bill.
Other Texas cities are not far behind, with San Antonio, Houston, and Fort Worth each reporting property taxes that constitute 19% of monthly housing payments. This stark contrast is evident when compared to lower property tax rates in the Sun Belt states, where effective tax rates drop below 0.5% in cities like Nashville, Phoenix, and Las Vegas.
Despite nationwide trends showing that the typical U.S. homebuyer spends about 4% of their income on property taxes, the share is notably higher for Texans. In Austin, buyers allocate around 8% of their income to property taxes, while Newark, NJ, and New Brunswick, NJ, follow closely with 9% and 7%, respectively.