Buying a Home in Texas vs. Florida: A Cost & Mortgage Comparison

Texas and Florida are two of the most popular states to buy a home — and they share a big draw: neither has a state income tax. But once you look past that, the two states diverge in ways that directly affect your monthly mortgage payment. Here's an honest, side-by-side comparison from a broker licensed in both. (Figures below are 2026 state averages; your actual numbers depend on your county and property.)

The big similarity: no state income tax

Both Texas and Florida charge 0% state income tax. For buyers — especially self-employed ones — that means more take-home income to put toward a home. It's a genuine advantage the two states share, so it won't be your deciding factor between them.

Property taxes: Texas runs higher

This is the clearest difference. As of 2026, average effective property tax rates are roughly:

• Texas: ~1.6% of home value per year
• Florida: ~0.73% of home value per year

On a $500,000 home, that's about $8,000 a year in Texas versus roughly $3,650 in Florida — a difference of more than $4,000 a year, or about $360 a month. Because property taxes are usually collected through your mortgage escrow, that gap shows up directly in your monthly payment.

Florida also has a helpful long-term protection: its "Save Our Homes" cap limits annual assessment increases on your homestead to 3%. Texas has no equivalent cap on assessed-value growth.

Homeowners insurance: Florida's wild card

Here's where Florida gives some of that property-tax savings back. Florida has some of the highest homeowners insurance costs in the country, driven by hurricane and flood exposure — and premiums have been volatile in recent years. Texas insurance isn't cheap either (hail and windstorms play a role), but it's generally more moderate than coastal Florida.

If you're comparing a specific home in each state, insurance is the number most likely to surprise you — so get a real quote early. We factor it into your affordability from the start.

Homestead protections

Both states protect primary residences, but differently:

• Texas: a $100,000 homestead exemption for school-district property taxes (plus strong creditor protections).
• Florida: a $50,000 homestead exemption, plus the 3% "Save Our Homes" assessment cap noted above.

What it all means for your mortgage

Your monthly payment is principal + interest + property taxes + insurance (often shortened to PITI). Because Texas and Florida differ so much on those last two, two identical loans on two identically priced homes can carry very different monthly payments depending on the state. That's why I always build taxes and insurance into your budget before you fall in love with a house.

Julia Kovalskiy is a residential mortgage loan originator (NMLS #2661068) licensed in Texas and Florida. This article is educational and is not a commitment to lend. Tax and insurance figures are 2026 state averages and vary by county, property, and provider.