When buying a house in Texas, the initial calculations usually only include the home price and mortgage.

However, when you get an actual estimate, there's a surprisingly large number that gets added: property tax.

Texas has no state income tax, but it does have a relatively high property tax burden. Irving is no exception.

Surprisingly, not many people know where their property tax payments actually go.

Looking at the typical tax rate structure for Irving for 2024-2025, you can see that taxes from various entities are combined.

For every $100 of assessed value, the City of Irving collects about $0.5891, Irving ISD collects $1.0159, Dallas County collects about $0.2155, Dallas College collects about $0.1066, and Parkland hospital-related taxes amount to about $0.2120. In total, that's about $2.1391 for every $100 of assessed value.

Let's think about it simply. If the taxable value before applying any exemptions is $400,000, the annual property tax would be about $8,556.

Dividing that by 12 gives you about $713 per month. Adding this amount to your mortgage makes the phrase "Texas home prices are cheap" sound a bit different.

So, where is this money mostly spent? The largest portion goes to schools. The Irving ISD tax rate makes up a significant part of the total.

The funds from this tax support everything from school building operations to staff and educational programs, maintaining the public education system.

Additionally, the City of Irving uses these funds for police and fire services, roads, parks, libraries, and other city services we use daily.

There's also a portion for Dallas County and taxes related to Parkland Health. Parkland plays a crucial role in the public healthcare safety net in Dallas County.

Taxes going to Dallas College support the local community college system.

So, in a single property tax bill, you're funding schools, police and fire services, hospitals, county administration, and colleges.

Fortunately, if it's your primary residence, you can check for a homestead exemption.

It's important to note that tax calculations don't simply end with "$400,000 house × tax rate."

Since exemptions and state regulations apply differently across taxing entities, the actual taxable value can vary.

So, don't assume you've accurately calculated your taxes based solely on one tax rate you found online. Before buying a home, it's best to check the assessed value and exemption status with the Dallas Central Appraisal District, along with the actual taxes from each entity.

Especially for those moving to Texas from other states, this is something you must look into. You might be excited about lower home prices compared to California, but when you factor in property taxes and insurance, your expected monthly housing costs could change.

Ultimately, what matters when buying a home in Texas is not the sale price, but how much actually comes out of your bank account each month.