Property Taxes in Florida and Texas

When you buy a home in Florida, a U.S. state known for no state income tax and high property tax variability. Also known as the Sunshine State, it relies heavily on property taxes to fund schools, roads, and emergency services. In Texas, a state with no income tax and some of the highest property tax rates in the nation. Also known as the Lone Star State, it funds public services almost entirely through local property taxes. Both states attract retirees and investors—but the cost of ownership isn’t what you might expect. Property taxes in Texas average 1.68% of home value, among the highest in the country. Florida’s average is 0.84%, lower but still steep in popular areas like Miami or Orlando. Neither state has a cap on how high taxes can go, but both offer homestead exemptions to reduce the burden on primary residents.

What makes these states different isn’t just the rate—it’s how the system works. In Florida, the Save Our Homes cap limits annual assessment increases on homesteaded properties to 3%, even if market values spike. That means a family living in the same home for 20 years might pay half what a new buyer pays for an identical house next door. Texas has no such cap, but it does offer a 20% homestead exemption and additional exemptions for seniors, disabled veterans, and farmers. Property tax bills in Texas are calculated by local appraisal districts, which can vary wildly between counties. A home in Austin might be taxed at 2.2%, while one in El Paso could be under 1.5%. In Florida, Broward County’s taxes are often higher than those in rural counties like Gadsden. If you’re considering a move or investment, the location within the state matters more than the state line.

Neither state taxes rental income, which is why both are popular with real estate investors. But that doesn’t mean the tax burden disappears—it just shifts. Investors in Texas pay full property taxes with no homestead exemption. In Florida, investors can still get a partial exemption if they live on the property part-time, but they don’t qualify for the full cap. Property tax appeals are common in both states, and many homeowners successfully reduce their bills by challenging their appraisal value. You don’t need a lawyer—just the right documents and timing. The post collection below gives you real examples of how people in these states manage their tax bills, what exemptions they used, and where they found the best deals despite high rates. Whether you’re buying, renting, or investing, understanding how these systems work saves you thousands.