What You Really Need to Budget for When Moving to Texas (2025 Edition)
- Michael Stephens
- 3 days ago
- 5 min read
Relocating to Texas is an exciting adventure. The sunshine, open spaces, and famous Southern hospitality make it easy to see why so many people are packing up and heading south. But before you make the move, it’s important to know exactly what your new life in Texas will cost. Between property taxes, insurance, HOA dues, and everyday living expenses, the numbers can add up quickly. This guide breaks down what you’ll really need to budget for in 2025 and how to plan for the financial side of your Texas move.
If you’d like a personalized breakdown of living costs in Mansfield, Dallas, Austin, or San Antonio, I can help you compare the numbers before you move.
Housing and Mortgage Costs
Housing is the biggest factor in your relocation budget. While Texas remains more affordable than many coastal states, home prices have risen steadily in recent years. In 2025, the median home price statewide is hovering around $543,000, though it varies significantly between regions. Areas like Austin and Dallas–Fort Worth tend to run higher, while San Antonio and the smaller suburbs still offer competitive prices.
When estimating your mortgage, remember to factor in not just the purchase price but also property taxes, which are typically higher in Texas than in other states. Rates can range from 1.5% to 2.5% depending on your county, school district, and city. For example, homeowners in Travis County (Austin area) pay an average of 1.98%. Because property taxes are assessed annually and tied to home values, it’s wise to add a small cushion to your estimated monthly costs.
If you’re unsure how much property tax you’d pay in your target area, I can send you a side-by-side estimate of several Texas counties to help you plan.
👉 Request your Texas property tax breakdown.
Summary: Expect a mortgage payment adjusted for property taxes, homeowners insurance, and closing costs that can include appraisal, inspection, and title fees.
HOA Fees and Private Community Costs
If you’re moving into a gated or master-planned community, make sure you understand the full scope of HOA dues. These fees fund shared spaces like landscaping, lighting, pools, and security. While they help maintain property values, they can also vary widely, from a few hundred dollars per year to several hundred each month.
Some HOAs also charge special assessments when unexpected repairs are needed, such as fixing a damaged gate or resurfacing private roads. Before closing on your home, review the community’s HOA financial statements and reserve fund details to ensure it’s well-managed and financially healthy.
Summary: HOA fees can range widely; always verify financials and reserves before buying.
Not sure what HOA fees look like in your preferred neighborhood? I can send you a snapshot of HOA costs and rules in your desired area.
Moving and Relocation Expenses
Whether you’re moving from another state or across Texas, relocation costs can be higher than expected. Long-distance moves can range anywhere from $2,000 to $15,000+, depending on distance, home size, and moving company. Even local moves often average around $1,500 when you include supplies, truck rentals, and labor.
In addition to transportation, budget for packing materials, temporary storage, and potential short-term accommodation if your move-in and move-out dates don’t align. Some clients also forget about deposits, security deposits for utilities, pet deposits for rentals, or fees for transferring vehicle registrations and driver’s licenses.
Summary: Factor in moving trucks, supplies, insurance, temporary housing, and setup fees for utilities.
Utilities, Insurance, and Monthly Expenses
Once you’ve settled in, monthly costs will depend heavily on location and lifestyle. Texas summers are hot, which means higher electric bills from running the air conditioner. On average, electricity, water, and trash bills for a mid-sized home run between $150–$300 per month, but in hotter regions like Austin or Houston, that number can climb quickly.
Homeowners insurance is another major expense. Because Texas faces risks like hail, tornadoes, and occasional flooding, premiums tend to be higher than the national average. It’s also important to check whether you’re in a flood-prone area. Flood insurance is often separate from standard home coverage.
Summary: Plan for higher utility use during the summer and confirm whether you’ll need flood insurance in your area.
Transportation and Commuting Costs
Texas is known for its wide roads and long commutes. Depending on where you live and work, transportation can be one of your biggest recurring costs. Fuel prices fluctuate, and major metro areas like Dallas and Austin have toll roads that can add up quickly.
If you’re moving from a walkable city, you’ll also want to budget for a car (or a second one) and maintenance costs like insurance, registration, and repairs. Public transportation options are improving in some cities, but personal vehicles remain the primary mode of transport for most Texans.
Summary: Consider vehicle costs, tolls, fuel, parking, and commute distance when choosing where to live.
Taxes and Hidden Fees
One of the biggest draws of Texas is its lack of state income tax. But that savings can be offset by higher local taxes and fees. As mentioned earlier, property taxes are substantial, and many cities add a sales tax of up to 8.25%. Some homeowners also pay additional fees through municipal utility districts (MUDs), which help fund water and infrastructure projects.
Before buying, ask whether your prospective neighborhood falls within a MUD or PID (Public Improvement District), as this could affect your annual costs.
Summary: Texas has no state income tax but does have high property taxes, local sales taxes, and potential district fees.
Planning for the Unexpected
Even with the best research, hidden expenses are inevitable. The key is to budget with a buffer. Aim to set aside at least 5–10% of your total moving budget for unforeseen costs like home repairs, higher insurance premiums, or deposits.
Working with a realtor who understands Texas relocation nuances can make this process smoother. From knowing which communities offer more predictable costs to understanding how to negotiate HOA fees or seller credits, having local insight can save you thousands.
Summary: Add a 10% buffer to your relocation budget for flexibility and peace of mind.
Moving to Texas is one of the best decisions many of my clients have made, but it’s not one to take lightly. With careful planning, a clear understanding of costs, and expert local guidance, you can relocate confidently knowing exactly what to expect.
Whether you’re moving to Dallas–Fort Worth, Austin, San Antonio, or Mansfield, I can help you compare neighborhoods, break down hidden fees, and find a community that fits your budget and lifestyle.
Ready to make your move to Texas?
Post written by Michael Stephens from Living Local Texas.
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