Texas has no income tax — but the property tax reality is more complicated than most people realize. Here's the full, honest picture.
Texas has no state income tax — that's true, and it's a real advantage for high earners. But Texas makes up for it primarily through property taxes, which are among the highest in the nation. On a $400,000 home in the Dallas or Houston suburbs, you'll typically pay $8,000–$10,000 per year in property taxes. The same home in a top Twin Cities suburb: $4,000–$5,500/year. Over 10 years, that's a $35,000–$55,000 difference in property taxes alone.
| Category | Texas | Minnesota (Twin Cities) | Advantage |
|---|---|---|---|
| State Income Tax | None | Up to 9.85% | ✓ Texas |
| Property Tax (avg effective rate) | 2.1–2.5% | 1.0–1.2% | ✓ Minnesota |
| Annual Property Tax on $400K Home | $8,400–$10,000 | $4,000–$4,800 | ✓ Minnesota |
| Homeowners Insurance (avg/yr) | $3,500–$6,000 | $1,800–$2,500 | ✓ Minnesota |
| Median Home Price (metro) | $335K–$540K | $355K | ~ Varies by City |
| Summer High Temp (avg) | 100–108°F (Jun–Aug) | 78–85°F (Jun–Aug) | ✓ Minnesota |
| Winter Severity | Mild (except ice events) | Cold, avg 20°F Jan | ✓ Texas |
| Flood/Storm Risk | High (hurricanes, flash floods) | Low | ✓ Minnesota |
| K-12 School Quality | Mixed (varies widely) | Consistently top-rated | ✓ Minnesota |
| Traffic (major metros) | Heavy (DFW, Houston, Austin) | Moderate | ✓ Minnesota |
* Data sourced from Tax Foundation, Zillow, BLS, NOAA, and Minnesota/Texas Departments of Revenue. 2024–2025 averages. Individual situations vary.
These are the suburbs that come up most often with buyers from your state — based on commute patterns, school priorities, and what people leave behind when they move here.
Let's work through the numbers for your specific income, home budget, and priorities. I'll give you an honest assessment — including when it makes sense and when it doesn't.