If you are moving to Houston, TX, the short answer is this: the median home price is $370,000, you will pay no state income tax, and you should budget for property taxes that typically land between 1.8% and 2.8% of your home's assessed value each year. Here is what you need to know about the cost of living, the commute, and getting set up in the Greater Houston metro.
The Houston housing market at a glance
Houston's local median home price sits at $370,000, which places the market in the mid tier for a major U.S. city. That price buys you more space than you would get in many coastal metros, but it comes with a trade off in property taxes. The city is part of Harris County, and the homes here range from historic bungalows inside the Loop to newer construction in the suburbs. Inventory has been steady, and most buyers are finding that a $370,000 budget gives them solid options in neighborhoods served by Houston ISD, which holds a state accountability rating of B.
No state income tax and what it means for your budget
Texas does not levy a state income tax, which keeps take-home pay higher than in most large states. For a household earning $100,000 a year, that can mean thousands of extra dollars in your pocket compared to states with a 5% or higher income tax. The trade-off is one of the highest effective property tax rates in the country, typically 1.5% to 2.8% of assessed value, funded primarily through ISDs and county or municipal taxing entities. So while you keep more of your paycheck, a larger share of your housing cost goes toward annual property taxes.
The reality of property taxes in Houston
Texas property tax rates vary significantly by county and ISD, generally landing between 1.8% and 2.8% of assessed value annually. The bill stacks: county, municipal, ISD, MUD or PID where applicable, community college, and special districts each levy a rate. For a $370,000 home, that could mean an annual tax bill of roughly $6,660 to $10,360 depending on the exact rates in your area. The homestead exemption and the 10% annual appraisal cap for primary residences provide partial protection from rate increases. If you buy a home as your primary residence, you can apply for the homestead exemption with the Harris County Appraisal District to lower your taxable value.
Commute and getting around Houston
Houston is a car-centric city. The commute is a fact of life, and most residents drive to work, school, and errands. The Greater Houston metro area is sprawling, so where you live relative to where you work matters a lot. Highways like I-10, I-45, and the 610 Loop can get congested during peak hours. If you work in the Energy Corridor or the Texas Medical Center, look at neighborhoods within a 15 to 20 minute drive to avoid a long commute. Public transit via METRO buses and the light rail is available but limited compared to other major cities. Plan on a car and budget for gas and maintenance.
Getting set up: utilities, schools, and services
Once you close on a home, you will need to set up electricity, water, and internet. Houston has a deregulated electricity market, so you can shop for plans from providers like Reliant, TXU, or Griddy. Water and trash services are typically handled by the city or a MUD. For schools, Houston ISD serves most of the city proper, and the district holds a state accountability rating of B. Many families also explore charter schools or private options. For healthcare, the Texas Medical Center is one of the largest medical complexes in the world and offers world-class care. Register your vehicle with the Harris County Tax Office within 30 days of moving, and update your driver's license with the Texas DPS within 90 days.
Homexa® provides general information, not legal, tax, or financial advice. Property tax rates, exemptions, insurance requirements, and school boundaries vary by parcel and can change; verify specifics with the county appraisal district, a licensed insurance agent, the ISD, and a licensed real estate or tax professional before you rely on them.