Taxes in Houston, TX
Updated 2026 • Property, income & sales tax data
📊 Total Annual Tax Burden in Houston, TX
The combined effect of property, income, and sales taxes determines your total tax burden. Based on Houston's median household income of $60,440 and a local median home price of $340,406.
🏠 Property Tax in Houston, 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 $340,406 for Houston, 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 Houston, 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 Houston, TX
Understanding taxes in Houston, TX is essential for budgeting. The area has higher property taxes at 1.99%. Income tax varies. Sales tax is 6.25%. This page breaks down property, income, and sales taxes with calculators and examples.
Tax Pros & Cons of Houston, TX
Pros
- •Warm weather all year round
- •Plenty of family-friendly activities
- •Active arts and music scene
- •Vibrant nightlife options available
- •Numerous parks and green spaces
- •Good job market for many fields
- •Diverse culture and activities
- •Great food scene in the city
- •Relatively low cost of living
- •Strong sense of community support
Cons
- •Limited public transportation options
- •Public schools can be lacking
- •Income inequality in neighborhoods
- •High humidity and heat levels
- •Political divide in local views
- •Some areas show racial tensions
- •Reports of high crime rates
- •Traffic congestion is frequent
- •Healthcare access can be uneven
- •Risk of flooding in some areas
Frequently Asked Questions
What is the cost of living in Houston, TX? ▼
The cost of living in Houston, 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 Houston, TX a safe place to live? ▼
Houston, TX is average in terms of safety, with crime rates near the national average. Safety varies significantly by neighborhood. View detailed Houston crime statistics →
What are the best neighborhoods in Houston, TX? ▼
The best neighborhoods in Houston, 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 Houston, TX? ▼
Tax rates in Houston, 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 Houston tax information →
How does Houston, TX compare to nearby cities? ▼
Houston, 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 Houston, TX? ▼
Weather in Houston, TX varies by season. Climate data varies by season. View detailed Houston climate & environment data →
Explore More About Houston, TX
📅 Last Updated: February 2026
Sources: Tax Foundation, State Revenue Departments, U.S. Census Bureau ACS