Taxes in Austin, TX
Updated 2026 • Property, income & sales tax data
📊 Total Annual Tax Burden in Austin, TX
The combined effect of property, income, and sales taxes determines your total tax burden. Based on Austin's median household income of $86,556 and a local median home price of $649,145.
🏠 Property Tax in Austin, TX
Property taxes are collected by local governments and used to fund schools, infrastructure, and other local services.
Note: The effective rate represents the percentage of a property's value paid in taxes annually. The US average property tax rate is approximately 1.1%. The estimate above uses the local median home price of $649,145 for Austin, not the national median of $419,200.
💼 State Income Tax in TX
Income tax rates and brackets vary by state, impacting residents' overall tax burden. TX has no state income tax, which is a significant financial advantage for residents.
Note: Tax estimates are approximations based on standard deductions and may not account for all applicable credits, deductions, or individual circumstances. For personalized tax advice, please consult a qualified tax professional.
🛒 Sales Tax in Austin, TX
Sales tax is applied to most retail purchases and is collected by merchants at the point of sale. The rate can vary based on location and type of purchase.
Impact on Common Household Expenses
| Category | Annual Spending | Est. Sales Tax |
|---|---|---|
| Groceries | $7,000 | $577 |
| Retail | $5,000 | $412 |
| Dining | $3,500 | $288 |
| Total Annual | $15,500 | $1,278 |
💡 Did you know? Not all states tax groceries, and some have tax holidays for specific items like back-to-school supplies or emergency preparedness equipment. Check with local authorities for exemptions that might apply to you.
Understanding Your Tax Burden in Austin, TX
Austin, TX residents deal with higher property taxes (approx. 1.51% effective rate), and 6.25% sales tax. This comprehensive tax guide helps you understand your financial obligations in Austin.
Tax Pros & Cons of Austin, TX
Pros
- •Best known for festivals
- •Good schools available
- •Wide variety of restaurants
- •Friendly locals
- •Diverse population
- •Vibrant music scene
- •Welcoming for young adults
- •Tech hub of Texas
- •Strong job market
- •Great outdoor activities
Cons
- •Some crime in certain areas
- •Gentrification concerns
- •Traffic congestion issues
- •Limited public transport
- •Political divide in views
- •Not family-friendly in parts
- •High cost of living
- •Noise from nightlife
- •Hot summers and humidity
- •Increasing housing prices
Frequently Asked Questions
What is the cost of living in Austin, TX? ▼
The cost of living in Austin, TX is 0% equal to the national average, with a cost of living index of 100 (where 100 represents the U.S. average). Housing typically accounts for the largest portion of living expenses. See full cost of living breakdown →
Is Austin, TX a safe place to live? ▼
Austin, TX is average in terms of safety, with crime rates near the national average. Safety varies significantly by neighborhood. View detailed Austin crime statistics →
What are the best neighborhoods in Austin, TX? ▼
The best neighborhoods in Austin, TX depend on your priorities. For families, look for areas near top-rated schools with lower crime rates. For affordability, neighborhoods vary in price depending on proximity to amenities and schools.
How are the taxes in Austin, TX? ▼
Tax rates in Austin, TX include state and local components. The cost of living index of 100 reflects a moderate cost environment compared to the national average. View detailed Austin tax information →
How does Austin, TX compare to nearby cities? ▼
Austin, TX offers comparable costs to nearby communities. With a cost of living index of 100, median home prices of $0, and a crime rate of 0 per 1,000 residents, you can compare these metrics side-by-side. Use the compare feature to evaluate specific cities.
What is the weather like in Austin, TX? ▼
Weather in Austin, TX varies by season. Climate data varies by season. View detailed Austin climate & environment data →
Explore More About Austin, TX
📅 Last Updated: February 2026
Sources: Tax Foundation, State Revenue Departments, U.S. Census Bureau ACS