Texas Mortgage Calculator: See Your True Monthly Payment
Texas doesn’t play the assessment-ratio games some states do — your home is appraised at 100% of market value, full stop. What keeps Texas bills from being crushing is a genuinely large exemption stack, one that just got bigger: Texas voters raised the school district homestead exemption to $140,000 and the senior/disabled add-on to $60,000 in November 2025. This calculator for a mortgage loan builds that exemption stack in directly, alongside realistic insurance, PMI, and HOA costs, so the number you see reflects what Texas buyers are actually budgeting for in 2026.
Your Loan Details
Texas Statewide Typical Spotlight
This is a representative statewide combined rate. Texas has no state property tax at all — every cent is set locally by your county, city, school district, and any special districts.
Your Estimated Monthly Payment
Balance vs. interest paid over time
Payment breakdown
Enter your details above to see a plain-language read on your payment.
What If You Paid Extra Toward Principal?
Slide to test an extra monthly payment and see how many years and how much interest it saves.
What If Your Rate Changes?
| Rate scenario | Interest rate | Monthly P&I | Difference |
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Your 5-Year Equity Projection
| Year | Remaining balance | Principal paid | Interest paid | Equity |
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Understanding a Texas Mortgage Payment
Buyers moving to Texas from a state with lower property taxes are usually bracing for the wrong number. They’ve heard “no state income tax” and expect an easy ride, then their first escrow analysis lands and the property tax line looks enormous. The full picture is more interesting than that: Texas appraises at true market value with no assessment-ratio discount, but it also hands homeowners one of the largest homestead exemption stacks in the country, and that stack just grew substantially. A calculator for a mortgage loan that ignores this stack will overstate your real payment by a meaningful margin.
No ratio tricks: Texas appraises at 100% of market value
Unlike states that discount the taxable base to a fraction of market value, Texas appraisal districts are required to value residential property at its actual market value as of January 1 each year. There’s no 10% or 40% assessment ratio softening the number before exemptions apply. The relief in Texas comes entirely from the exemption side of the equation, not the assessment side — which is exactly why knowing your exemptions matters so much more here than in most states.
The exemption stack that just got bigger
In November 2025, Texas voters approved two constitutional amendments that reshaped the math for nearly every homeowner in the state. Proposition 13 raised the mandatory school district homestead exemption from $100,000 to $140,000, and Proposition 11 raised the additional exemption for homeowners age 65 or older, or those with a qualifying disability, from $10,000 to $60,000. Both are retroactive to the 2025 tax year. Here’s what that looks like on a $350,000 home with a combined local rate of $1.80 per $100 of value:
| Market value (as appraised) | $350,000 |
| Assessment basis | 100% of market value |
| General homestead exemption (Prop 13) | – $140,000 |
| Taxable value | $210,000 |
| Example combined rate | $1.80 per $100 (1.80%) |
| Estimated annual tax | $210,000 × 0.018 = $3,780 |
That works out to roughly $315 a month. Add the additional $60,000 exemption for a homeowner 65 or older, and the taxable value on that same home would drop to $150,000, cutting the estimated annual tax to about $2,700. This calculator runs that exact math live as you toggle the exemptions on and off.
The mortgage payment formula behind the number
The principal and interest portion uses the standard amortization formula: M = P × [r(1+r)^n] ÷ [(1+r)^n – 1], where P is your loan amount, r is your monthly interest rate, and n is your total number of payments. This calculator for a mortgage loan then layers on your county’s combined property tax rate applied to your taxable value after exemptions, homeowners insurance, PMI if your down payment is under 20%, and HOA dues, since your lender will escrow most of these anyway.
The 10% homestead cap: your protection against runaway appraisals
Once a home carries a homestead exemption, Texas Tax Code Section 23.23 limits how much the appraised value used for taxation can rise each year: no more than 10% above the prior year’s appraised value, regardless of how much the true market value jumped. This cap resets when a home is sold, so a buyer inherits the current market value as their new starting point, but from that point forward, steep single-year appraisal spikes are capped as long as the homestead exemption stays on file. It’s a separate mechanism from the dollar exemptions above; the two work together.
The 65+ school tax ceiling most buyers don’t know to ask about
Beyond the larger dollar exemption, homeowners who are 65 or older, or who qualify as disabled, can lock in a school tax ceiling: once granted, your school district taxes are frozen at that dollar amount going forward, even if your home’s value or the tax rate rises later, with limited exceptions for significant home improvements. This calculator doesn’t attempt to project a multi-year freeze, since it depends on the year you first qualify, but it’s one of the most valuable benefits in the Texas system and worth confirming with your county appraisal district if you or a co-borrower will be 65 soon.
Common mistakes buyers make estimating a Texas mortgage
- Using the seller’s tax bill as your estimate. A seller’s homestead exemption and any appraisal cap benefit don’t transfer to you; your first year’s bill often resets closer to full market value minus your own exemptions.
- Forgetting to file the homestead exemption. It isn’t automatic. You apply through your county appraisal district, generally by May 1, using Form 50-114.
- Assuming “no income tax” means low overall taxes. Texas leans heavily on property tax to fund schools and local government, which is why effective rates run well above the national average.
- Missing the 2025 exemption increases. Some older online calculators and articles still reference the old $100,000 exemption; the mandatory school exemption is $140,000 as of the 2025 tax year.
- Skipping PMI removal math. Once you reach 20% equity, you can request PMI removal, yet many owners keep paying it long after they qualify to drop it.
Tips for lowering your Texas mortgage payment
- Compare quotes from at least three lenders; a 0.25% rate difference on a $280,000 loan changes your payment by roughly $45 a month.
- File your homestead exemption with your county appraisal district as soon as you close — the general deadline is before May 1 of the following year.
- If you or a co-borrower is 65 or older, or qualifies as disabled, ask your appraisal district about the additional $60,000 exemption and the school tax ceiling in the same visit.
- Watch your annual Notice of Appraised Value closely, and remember the 10% homestead cap only protects you once the exemption is on file for a full prior tax year.
- Use the extra-payment scenario tool above to see how even $100 a month toward principal can shorten a 30-year Texas loan by years.
Frequently Asked Questions
What is a Texas mortgage calculator?
It is a tool that estimates your full monthly home payment in Texas, including principal, interest, property tax based on the state’s 2025 homestead exemption amounts, homeowners insurance, PMI, and HOA dues.
How accurate is this Texas mortgage calculator by payment?
The principal and interest math is exact, based on the standard amortization formula. Property tax and insurance figures are estimates built from typical Texas county combined rates, so your actual escrow figures may vary once a lender underwrites your loan.
Does Texas have a state property tax?
No. Texas has no state-level property tax. All property tax is assessed and collected locally by counties, cities, school districts, and special districts.
How much is the Texas homestead exemption in 2026?
The mandatory school district general homestead exemption is $140,000, raised from $100,000 by Proposition 13 in November 2025. Homeowners 65 or older, or who qualify as disabled, receive an additional $60,000 exemption under Proposition 11.
How do I figure out a mortgage payment by hand in Texas?
Start with your home’s full market value, subtract your homestead exemption or exemptions, multiply the result by your local combined tax rate to estimate annual property tax, then add that monthly figure to your amortized principal, interest, insurance, PMI, and HOA.
What is the Texas 10% homestead appraisal cap?
Once a homestead exemption is on file, the appraised value used for taxation can rise no more than 10% per year, regardless of how much the true market value increases. It resets when the home is sold.
Do homeowners 65 and older get a property tax break in Texas?
Yes. In addition to the extra $60,000 exemption, homeowners 65 or older, or those who qualify as disabled, can lock in a school tax ceiling that freezes their school district taxes at that dollar level going forward.
What down payment do I need to buy a home in Texas?
Conventional loans often start around 3 to 5% down, FHA loans typically require 3.5%, and VA loans can allow 0% down for eligible veterans, which is common near Texas’s many military installations.
When can I remove PMI on a Texas home loan?
Federal law lets you request PMI removal once you reach 20% equity, and lenders must automatically cancel it at 22% equity based on the original amortization schedule, assuming your payments are current.
Should I choose a 15-year or 30-year mortgage in Texas?
A 15-year term carries a lower rate and far less total interest but a higher monthly payment. Most Texas buyers choose a 30-year term for flexibility, then add extra principal payments when they can.
Does this calculator include closing costs?
No, this tool focuses on the ongoing monthly payment. Texas closing costs typically run 2 to 5% of the purchase price, and Texas does not charge a separate mortgage or transfer tax.
References
- Texas Comptroller of Public Accounts, Property Tax Exemptions – comptroller.texas.gov/taxes/property-tax/exemptions
- Consumer Financial Protection Bureau, Owning a Home resources – consumerfinance.gov/owning-a-home
- U.S. Department of Housing and Urban Development, homebuying guidance – hud.gov/topics/buying_a_home
Related DexoCalc Tools
This Texas mortgage calculator is part of a growing Mortgage Calculators cluster I am building out on DexoCalc, with the goal of covering every state. Start with the national Mortgage Calculator to compare Texas against other states, check the California Mortgage Calculator to see how differently property tax works under Proposition 13 out west, or browse the full Mortgage Calculators hub to see every state-specific tool as new ones are published.
This calculator provides estimates for educational purposes only and is not a loan offer, pre-approval, or substitute for advice from a licensed mortgage professional. Property tax, exemption, and insurance figures are approximations; confirm exact figures and eligibility with your county appraisal district. Sources: Texas Comptroller of Public Accounts, CFPB.