Texas Real Estate: Pros and Cons for Today's Professionals

Texas draws professionals from every corner of the country, and the first thing most of them hear is that the state has no income tax. That is true, and it matters, but it is only half the financial story. This guide lays out the real pros and cons of Texas real estate for today's professionals, with public figures and the trade-offs that rarely make it into the relocation pitch.

The pro: no state income tax

Texas has no state individual income tax, which the Tax Foundation and state finance sources confirm, so none of your paycheck is withheld for state income tax, a real difference for high earners. The state instead relies on sales tax, a business franchise tax, and property taxes. For a professional earning a six-figure salary, that can be worth thousands a year compared with income-tax states.

The con: property taxes above the national average

Texas property taxes are the trade-off. The Tax Foundation puts the state's average effective property tax rate around 1.4 percent of home value in its 2026 ranking, the seventh-highest in the nation and well above the national average of roughly 1.0 to 1.1 percent. On a $500,000 home, that spread is real money every single year, and it is baked into your monthly payment through an escrow.

The pro: no transfer tax when you sell

Texas is one of the states with no state real estate transfer tax, so a six-figure sale does not carry a state levy on the way out. That is part of why the full cost of selling here, commissions and title aside, usually runs lower than in states with transfer taxes. The Texas Department of Insurance even cut regulated title insurance premiums 6.2 percent effective March 1, 2026, the first reduction in over a decade.

The con: insurance and the other layers

Homeowners insurance in Texas averages roughly $3,900 to $4,100 a year for a standard policy in 2026 rate trackers, well above the national average, thanks to hail, hurricanes, and reinsurance costs. Add flood insurance in mapped zones, MUD or PID fees in many newer communities, and HOA dues in master-planned areas, and the monthly carrying cost of a Texas home includes several layers the listing price never shows.

The pro: strong job markets and lifestyle

Houston, Dallas-Fort Worth, and Austin keep adding professional jobs, and Texas offers space, schools, and a cost of living that stretch paychecks further in housing terms. Professionals who move here for work usually find the career math works, especially when their employer factors in the housing difference between metros.

How to make the call

The honest way to compare is total cost, not taxes alone: model the no-income-tax gain against the property tax bill, insurance, and community fees for the specific home and county you are considering, and check the homestead exemption, which caps appraisal growth on your primary residence. The numbers vary by address, which is exactly why a local broker should run them with you before you commit.

Sharon Yeary has helped professionals relocate into Texas for 27 years, from Houston to Katy to Dallas-Fort Worth. Ask the Sharcom team to run the realistic monthly math for the neighborhoods you are considering, taxes, insurance, fees, and all, so the move is a plan, not a surprise.