What are the lowest property taxes in Texas? From what we’ve gathered, the 5 lowest property taxes in the state are:
Texas is one of the states that does not impose a state-wide collection of property taxes. In this setup, the local government is the one responsible for collecting property taxes from its residents. Because of this, rates aren’t equal across different localities. But what do these counties have to offer? Let’s take a closer look.
5. San Augustine County
(Median property tax bill: $681; Median home price $83,500)
Throughout the years, Texas has continued to be one of the most popular states for real estate investments. With an upward economy, a growing population, and most importantly, the lack of statewide property taxes, more and more investors are pouring in.
As one of the leading property management companies in Texas, we understand how the property tax can influence an investor’s decision. So, let’s review the 5 lowest property taxes in Texas, starting with San Augustine County.
Lying along the Attoyac River in the far east side of Texas, San Augustine County is primarily known for its quaint environment. With a relatively small population of approximately 7,800 residents, San Augustine is still in the process of development. For investors like you, this means that there are vast opportunities for infrastructure and housing to account for the community’s continuous growth.
Given the area’s mostly rural landscape and its focus on agricultural land use, investors can also benefit from affordable land and property prices. With a median home price in San Augustine sitting at $83,500 and a median property tax bill of $681, you can maximize your returns with the lower cost.
4. Hudspeth County
(Median property tax bill: $677; Median home price: $57,400)
Moving on to the next, we have Hudspeth County. Sitting on the opposite side, over in West Texas, Hudspeth County is a lot more laid back in terms of real estate development. With a population of just a little over 3,600, things are a little slow regarding residential demand. So, between residential and commercial real estate, the latter has better chances in Hudspeth County.
However, the more effective investment strategy for a deeply rural community like Hudspeth County focuses on land-use. Think of vast agricultural lands, industrial projects, and even land banking. With the county’s property tax liability at a low $677 and a median home price at $57,400, you can acquire vast lands and look into developing property. Or, you might pick buying and holding until the valuation reaches a point that aligns with your investment goals.
3. Cottle County
(Median property tax bill: $623; Median home price $54,100)
Further down our list is the Cottle County. Located up in northern Texas, right by Oklahoma, Cottle County is another locality that has continuously ranked for its low property tax obligation. With a median property tax bill at a slightly lower $623, Cottle County features a largely rural and agricultural real estate market.
Following the trend, Cottle County also has a relatively small population and minimal urban development. This means that, although residential demand is fairly low, investors can enjoy flexibility in how they want to utilize their acquired land. With median home prices sitting at $54,100, you can find a low-cost property to transform into an income-generating investment that fits the rural real estate market.
2. Borden County
(Median property tax bill: $493; Median home price: $105,400)
Next, we have Borden County. Similarly, this community in West Central Texas has a small population and little urban development or demand. With a population of a mere couple of hundred, the local government is able to keep annual tax obligations at a low $493, which allows investors like you to use long-term holding strategies.
However, property prices may not be as forgiving. The median home price here in Borden County reaches six-digit figures, which may not be suitable for individual or entry-level investors.
1. Crockett County
(Median property tax bill: $466; Median home price: $140,000)
Topping our list of the lowest property taxes in Texas is Crockett County. Located in West Texas, Crockett County is characterized by rural and agricultural real estate. Think of vast open spaces, ranchlands, and farms, accompanied by a population of roughly 3,000 people.
It is relatively larger and more developed compared to other counties in our list. Crockett is a historical county with a number of attractions such as the Davy Crockett monument and the Fort Lancaster State Historic Site.
For investors, Crockett County offers extremely low carrying costs, amounting to just $466 in annual property taxes. While the county doesn’t feature any large cities and only has modest infrastructure, you can use this as an opportunity to introduce small commercial developments.
However, it is important to take into account that the median home price in Crockett County is not the cheapest. With the average price of homes reaching $140,000, investments through partnerships or sponsorship may be the ideal strategy.
Tax bill and median home price info provided by Austin-American Statesman.
A Disclaimer
We’re only providing general information in this article for educational purposes only. While we aim for accuracy and reliability, the information shared is not meant to be relied on as legal, tax, financial, or specific regulatory advice. We strongly recommend that you always consult with a licensed attorney, CPA, or other qualified professional in your specific jurisdiction for advice tailored to your unique circumstances, as reading this blog does not establish a client or advisory relationship with BMG.
How Bay Property Management Can Help
The beauty of Texas has continued to drive real estate developments left and right. However, another appeal that draws investors to the state is its relatively low property tax obligations. With the lowest property taxes in Texas focused on quaint and rural communities, investors like you need to know how to best tackle opportunities in areas with minimal commercial development, limited residential demand, and the like.
Need help analyzing investment opportunities in counties with the lowest property taxes in Texas? Partnering with a property management company like BMG might be just what you need. By leveraging our knowledge of the local housing market and day-to-day property management services, we can help you simplify your investment journey. Ready to take the first step? Contact us today!
