What is the Property tax on rented properties in Texas?

[Suneel P.]

I am planning to buy a single-family house in Austin, Texas or surrounding cities and rent it out. I learnt that property taxes for owner-occupied homes are different from that of rented Properties. What would be the approximate property taxes on rented properties in Texas? And also is it advisable to invest in Austin area in Texas considering property taxes are high?

[Justin R.]

A LOT! Texas was my first out of state area which I started purchasing rentals (2011). I am currently selling them all, as the cash flow has actually declined.

Texas has high property tax because it is a huge portion of local government revenue, as their is no state income tax. Furthermore, Texas unlike many other states, doesn’t have any protections against hyperinflation for non homesteaders. So, if your assessed value goes up by 25 percent in one year, your taxes go up by 25 percent.

I like Texas, just over the property taxes...