Austin Texas Property Tax & Insurance Costs for Tech Workers Moving from California: Why the No-Income-Tax Math Isn't Enough

Austin homeowners typically pay somewhere in the 1.6%–2% range of their home's value in property taxes every year, and homeowner insurance premiums in the area tend to run higher than what many California transplants are used to—together, these two costs can quietly cancel out much of the savings tech workers expect from Texas's no state income tax.

If you're relocating from California and doing the math on a spreadsheet titled "Why Texas Is Cheaper," it's worth slowing down before you hit send on that offer letter. The soil looks different once you dig in.

The Root of the Confusion: No Income Tax ≠ No Taxes

Texas doesn't tax wages, and that's real. But state and local governments still need to fund schools, roads, and services—and in Texas, that funding grows mostly from property taxes instead of income taxes. Think of it like a garden that gets its water from a different source. The plant still needs watering; it's just coming from a different hose. For tech workers used to California's property tax structure (capped and slow-growing thanks to Prop 13), Austin's approach can feel like a surprise downpour.

Digging Into Austin's Property Tax Roots

Property tax rates around Austin and greater Travis County commonly land in that 1.6%–2% band of assessed value, and unlike California, there's no long-term cap keeping your bill low relative to what you paid. As home values rise—and Austin's have risen a lot over the past several years—your tax bill tends to rise with them. A home that seemed like a steal compared to the Bay Area can carry an annual tax bill that changes the whole budget conversation.

The Insurance Weed Nobody Warns You About

Homeowner insurance in Texas has been climbing for reasons that have nothing to do with your credit or your down payment: severe weather exposure, hail, wind, and rebuilding costs all play a role. Coastal and storm-prone regions across our footprint—including Texas—have seen premiums grow noticeably compared to milder-climate states. It's the kind of cost that doesn't show up on a "cost of living calculator" until you're already holding the actual policy quote.

New Construction, New Price Tags: Why Post-2022 Homes Cost New Growth

Here's a twist many relocators don't see coming: newer homes, especially those built after 2022, often carry higher insurance costs—not lower. Replacement cost coverage is based on what it would take to rebuild the home today, and construction costs have climbed. A shiny new build with modern finishes and higher square footage can come with a bigger insurance number than an older, smaller home nearby. New doesn't always mean cheaper to protect.

Mapping Your True Total Cost of Ownership

The smart move isn't comparing California's income tax bill to Texas's zero—it's mapping the full picture: mortgage payment, property tax, homeowner insurance, HOA dues if any, and utilities. Lay all of it out side by side, like a garden plan sketched before you plant a single seed. Only then can you see whether the total cost of ownership in Austin genuinely beats what you're leaving behind, or whether it's closer than the headlines suggest.

Planting Smart: How a Broker Helps You See the Whole Garden

This is exactly where working with a broker earns its keep. As a mortgage brokerage, Plan Prepare Home doesn't lend the money directly—we shop multiple lenders and loan programs on your behalf, comparing structures that may fit your relocation timeline, income type, and down payment goals. Certain loan programs, including options that may help with escrowed tax and insurance costs or renovation financing, are available programs subject to qualification. Our job is to help you see the full landscape—taxes, insurance, and financing—before you put down roots, not after.

Moving from California to Texas can still make excellent financial sense for many tech workers. But the decision deserves real sunlight, not just a headline about income tax. Run the full numbers, ask the right questions about property tax and insurance, and you'll plant your next home on solid ground instead of a surprise.

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