The 10 Counties With the Highest Property Taxes in Texas

"If you're a homeowner in the state of Texas, you have the joy of living without any state income tax, and this has become one of the most powerful selling points of the state. Whether you are a retiree, a remote worker, or anyone looking to keep more of what they earn, the Lone Star State has plenty of appeal."

"The problem is that the savings you can find in Texas don't tell the whole story, as you can also be stuck with a hefty property bill. Texas relies heavily on property taxes to fund local schools, services, and infrastructure, and some counties have raised their effective tax rates above 2%. To put this into perspective, if you own a home at $300,000 in one of these counties, you could be looking at a property tax bill of $6,000 or more in property taxes alone."

"For investors who are building income-focused portfolios or retirees counting on ETFs and withdrawal strategies to cover living expenses, property taxes aren't just a line item. These are recurring drag on cash flow that isn't concerned with the market being up or down. Understanding where these costs are highest in Texas matters, whether you are planning a move or just trying to get an honest read on what retirement actually costs in a state that markets itself as being tax-friendly."

"The reason that Texas property taxes catch so many people off guard is that they operate on a very different model than most states. Without income tax revenue to lean on, counties and school districts alike depend almost entirely on property assessments to keep the lights on. This is where it gets personal for retirees and income-focused investors, as a rising property tax bill isn't worried about your 4% or 5% carefully constructed withdrawal strategy."

Texas offers no state income tax, attracting retirees, remote workers, and those seeking to keep more of their earnings. Local governments fund schools, services, and infrastructure primarily through property taxes, and some counties have effective rates above 2 percent. A $300,000 home in those counties can incur $6,000 or more annually in property taxes. These taxes are recurring and independent of market performance, which can erode cash flow for retirees and income-focused investors relying on withdrawals or ETF income. Appraisal districts reassess property values regularly, increasing the risk of rising tax bills in fast-growing areas and making location selection critical for retirement planning.

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