[Real Estate Joe]

I tend to hear this question from out of state clients frequently. Many buyers move to Texas from other areas with property taxes at a fraction of the 2-4% property taxes in Texas.

The major reason for higher property taxes is the fact that we don't have any state income tax, so we need to generate taxes from somewhere.

The other most important factor.....You get to have the privilege of living in the great State of TEXAS

Here is an interesting comparison:

Annual property tax for homes valued at $189,000

Houston, Tx Davenport, Fla Mt. Vernon, Ind.
Price $189,000 $189,900 $189,900
Property tax $6,020 $876 $1,831

The Houston property has 3,095 square feet with 4 bedrooms and 2-1/2 baths
The Davenport property has 1,847 square feet with 3 bedrooms and 2 baths
The Mt. Vernon property has 2,214 square feet with 3 bedrooms and 2 baths

Houston Description: The kitchen has plenty of cabinet space, an oversized center island and a built-in desk; each bedroom has a walk-in closet, and the master suite boats an attached bathroom with a whirlpool bathtub. The home was built in 1990.

Davenport Description: This contemporary style home, built in 1995 is located in a gated community. A $60,000 addition was put on three years ago that includes an extra bedroom and a family room. The home faces south, so the yard gets sun all year round.
Mt. Vernon Description: Built in 1998, this brick home has a master bedroom with its own bathroom and a whirlpool tub, a wet bar in the dining room and 12-foot ceilings in the entryway.

Source: The Wall Street Journal, March 9, 2005