Texas Rent vs Buy Calculator 2026

The rent vs buy decision in Texas depends on several state-specific factors. Property taxes average 1.60% of home value per year, which is above the national average and adds significantly to the cost of homeownership. Higher property taxes push the break-even point further out, meaning you may need to stay in your home longer for buying to make financial sense.

Texas does not have a state income tax, which means residents keep more of their paycheck. However, this also means you cannot deduct state income taxes on your federal return (SALT deduction), which slightly reduces the tax benefit of the mortgage interest deduction compared to high-income-tax states.

When comparing renting vs buying in Texas, factor in the local housing market appreciation rate, average rents in your target area, closing costs (typically 2-5% of the home price), and how long you plan to stay. Most buyers in Texas need to stay at least 5-7 years for buying to beat renting financially.