By: KeyCrew Media
Texas’s lack of a state income tax is one of the most attractive draws for buyers relocating from states like California and New York. According to Kathy Sokolic, Principal Realtor with Mueller Residential Group in Austin, Texas, understanding the full financial picture, including property taxes, helps relocating buyers plan with confidence and make the most of that advantage.
A Fuller Financial Picture
Texas has no state income tax, which weighs heavily in relocation decisions from high-tax states. Property taxes help offset that advantage, and factoring them in early gives buyers a clearer, more complete view of their monthly costs. “We don’t have income tax in Texas, and so our property taxes are a bit higher, and the overall cost of living here is a little higher than people sometimes anticipate,” Sokolic says.
That’s a detail worth building into a budget from the start, alongside the excitement of relocating to a no-income-tax state, not instead of it.
Setting Realistic Expectations on Space and Price
Land values vary widely by region, and Austin’s rapid growth shapes what a given budget can buy. “There’s definitely a big difference between land values in Texas and places like New York or Los Angeles,” Sokolic says. “But Austin is one of the country’s fastest-growing cities. A one million dollar budget can buy a beautiful home here, but most likely won’t include acres of land and a horse if you want to be close to downtown.”
That distinction matters for how buyers approach the search: proximity to downtown Austin comes with density and a different price point than the outlying suburbs, where larger homes on bigger lots are more attainable. Neither is better. They’re simply different starting points depending on what a buyer values most.
Lifestyle Questions Shape the Financial Plan
Sokolic’s initial buyer consultations start with lifestyle, not price. What activities matter to the buyer? Do they have children? How much time do they want to spend in a car versus walking to amenities? Those answers point toward the part of the metro (and the tax rates, commute times, and price points that come with it) that will actually work for a client’s life.
“You can get out in nature and have an amazing home with greenery around you and trails, but maybe you’re not so close to amenities like groceries or restaurants,” Sokolic says. “So it’s what kind of lifestyle do you really want to have.”
For buyers coming from dense urban environments, Sokolic notes that walkable, street-level living is available in Austin too, particularly in neighborhoods like Mueller, which echo the feel of cities like New York, at a different price point than a suburban development further out.
Getting Started
Sokolic recommends a clear first step for buyers exploring a move to Austin: connect with a lender early in the process. “I always recommend talking to a lender first,” Sokolic says. “It’s the best way to get a clear, realistic picture of your options before you start touring homes.”
From there, she encourages buyers to explore neighborhoods in person or through tools like Google Street View, and to narrow their search to two or three priorities that matter most, building a plan that’s realistic, informed, and genuinely their own.
Kathy Sokolic is a real estate professional and co-founder of Mueller Residential Group, a boutique residential team rooted in Mueller and serving the greater Austin area, operating under the Compass brokerage. Mueller Residential Group specializes in helping buyers, sellers, relocators, and downsizers throughout the Greater Austin market.
Disclaimer: This article is based on information provided by the expert source cited above. It is intended for general informational purposes only and does not constitute legal, financial, or real estate advice. Readers should conduct their own research and consult qualified professionals before making any real estate or financial decisions.
