Texas Tax Toll

Texans are saddled with some of the worst property taxes in America

Texas ranks in the five worst states for property taxes.

Photo courtesy of NTREIS/Hunter Dehn Group

Ever wonder where all of your money goes? If you live in Texas, there’s reason for this sentiment. Following a report on how much debt Dallasites live with, WalletHub has released property tax statistics revealing Texas as one of the most heavily taxed states in the country.

The financial website analyzed the 50 states and District of Columbia to determine which states “pack the biggest property-tax punch.” And if you’re looking to buy a home in Texas, you may want to heed the data.

With a 1.93 percent tax rate, Texas ranks No. 47, making it one of the worst states for property taxes. That means that a house priced at $176,000 — the median home value in the U.S. — will have an annual tax cost of $3,392 in Texas, the fifth highest in the nation. WalletHub reports that the median home price in Texas is $131,400, which amounts to $2,537 in annual Texas property taxes on a home of that price.

To give some perspective, Hawaii — the best state for property taxes — has a 0.28 percent real estate tax rate, which comes out to a mere $489 in annual taxes on a $176,000 home. New Jersey — the worst state in the nation for property taxes — has a 2.29 percent real estate tax rate, which comes out to $4,029 in annual taxes.

WalletHub consulted with a panel of leading property tax experts for insight on what the data means for homeowners. Margaret McFarland, a real estate professor at the University of Maryland, warns that before you pack your bags, you should view the bigger picture.

“Looking at property taxes alone is not a good strategy,” she says. “To do a real analysis of taxes as a cost of living, all the taxes in an area would have to be considered, not just property taxes.”

And while real estate taxes might be taking a toll on Texas wallets, we can count our blessings that our state has no vehicle property tax or income tax. This raises real estate taxing, but it does reduce the overall taxes we pay each month. See, don’t you feel better?

reports trends wallethub

hottest zips

Surprising Dallas neighbor ranks among hottest ZIP codes in U.S.

City of Lavon/Facebook

Movers are loving Lavon for its small-town feel and proximity to the big city.

A recent analysis of American relocation trends has revealed the small city of Lavon outside Dallas was one of the top five hottest ZIP code for movers nationwide in October 2025.

Lavon's 75166 ZIP code ranked No. 5 on MovingPlace's new list ranking the U.S. cities with the highest number of new movers per 1,000 current residents during the month of October.

According to the study's data, 961,650 moves took place across the nation last month. Lavon (population: 13,800) saw 10.8 moves per 1,000 residents in October, the fifth highest moving rate out of all U.S. cities.

Lavon is located 32 miles northeast of Dallas in Collin County. It was praised as a highly sought-after locale for movers who want to live somewhere affordable outside Dallas while still reaping the benefits from a community with a small-town feel.

The report also added that Lavon's 75166 ZIP was the No. 1 hottest ZIP code in September, but relocations dipped 7.7 percent from September to October.

"When looking at the top ZIP codes in each state, it’s clear that less populated ZIP codes often show dramatic month-over-month increases, sometimes exceeding 100 percent," the report said. "Larger cities, by contrast, maintain consistently high move volumes without extreme spikes, because their larger populations dampen the impact of individual moves."

These are the top 10 hottest U.S. ZIP codes based on moves per capita in October:

No. 1 – 78616 in Dale, Texas
No. 2 – 34987 in Port Saint Lucie, Florida
No. 3 – 37228 in Nashville, Tennessee
No. 4 – 80019 in Aurora, Colorado
No. 5 – 75166 in Lavon, Texas
No. 6 – 32461 in Inlet Beach, Florida
No. 7 – 10004 in New York, New York
No. 8 – 43137 in Lockbourne, Ohio
No. 9 – 30346 in Atlanta, Georgia
No. 10 – 78656 in Maxwell, Texas

The hottest U.S. ZIP codes by total move volume
Five Texas ZIPs ranked among MovingPlace's separate analysis of the top 10 hottest U.S. ZIP codes based on total move volume.

McKinney's ever-popular 75071 ZIP code ranked No. 5 on the list after gaining 298 new residents last month, only 72 residents shy from No. 1-ranking Washington, D.C.'s new resident count.

This North Dallas suburb also previously ranked as the No. 8 most popular ZIP for movers during the first five months of 2025.

The report said McKinney's most attractive qualities are its safety, its high-performing schools, and its proximity to outdoor recreational activities. it also helps that the suburb consistently ranks as the No. 1 hottest housing market in America, and it frequently tops lists comparing the best cities for renters or the most affordable cities in the U.S.

The top 10 hottest American ZIP codes in October based on total move volume were:

No. 1 – 20002 in Washington, D.C.
No. 2 – 78130 in New Braunfels, Texas
No. 3 – 78641 in Leander, Texas
No. 4 – 77433 in Cypress, Texas
No. 5 – 75071 in McKinney, Texas
No. 6 –32256 in Jacksonville, Florida
No. 7 –77493 in Katy, Texas
No. 8 – 85142 in Queen Creek, Arizona
No. 9 – 98052 in Redmond, Washington
No. 10 – 28269 in Charlotte, North Carolina

suburb real estate housing market moving mckinney dallas

Texas Tax Toll

Texans are saddled with some of the worst property taxes in America

Rodeo Dallas bar takes party to Uptown Dallas at new location

New Andreas steakhouse lands in former Morton's space in Uptown Dallas

DosBros Fresh Mexican Grill brings its spin on Chipotle to McKinney

hottest zips

Surprising Dallas neighbor ranks among hottest ZIP codes in U.S.