What Should I Know Before Moving to Austin From Out of State?
Last updated September 2026
Before moving to Austin from out of state, know that Texas has no personal income tax, but you'll still pay property tax on your home and a sales tax of up to 8.25%. Know your deadlines too: 30 days to register your car, 90 days to switch your license, and April 30 to file your homestead exemption once you qualify.
The home prices are the other piece. As of August 2026, the median home in the City of Austin sold for $560,000, down 4.3% from a year earlier, according to Unlock MLS.
Key Takeaways
Texas has no personal income tax, but state and local sales tax can reach 8.25%.
Your property tax bill stacks every taxing unit at your exact address, so check the address, not the city.
File your homestead exemption with the Travis Central Appraisal District by April 30. It takes $140,000 off your home's value for school taxes.
Register your car within 30 days of moving and switch your driver license within 90.
As of August 2026, the City of Austin median sale price was $560,000 and the wider metro median was $412,000 (Unlock MLS).
Does Texas really have no state income tax?
Yes. The Texas Comptroller puts it plainly: "Texas does not have a personal income tax."
That doesn't make Texas tax free. The state sales tax is 6.25%, and cities and other local bodies can add up to 2% more, for a maximum of 8.25% (Texas Comptroller). The other big line is property tax, which is where Austin homeowners feel it.
So run the whole picture, not just the paycheck. A bigger take-home can shrink fast once the property tax bill lands.
How much are property taxes in Austin?
It depends on the exact address, because your bill stacks every taxing unit that covers the house: school district, county, city, and sometimes more.
Here's one layer to show how it works. Austin ISD's total school tax rate for 2025-26 is $0.9252 per $100 of taxable value (Austin ISD). On a $500,000 home with the $140,000 homestead exemption, the school portion alone runs about $3,331 a year. The county, city and any other units come on top of that.
Some newer neighborhoods also sit inside a Municipal Utility District, or MUD. A MUD can levy its own property tax to pay off the bonds that built the water, sewer and drainage, and the seller has to hand you a MUD notice before you sign a contract (Texas Real Estate Research Center). Read that notice before you fall in love with the kitchen.
What is the homestead exemption, and when do I file?
The homestead exemption lowers the taxable value of the home you live in. For school district taxes, Texas voters raised it from $100,000 to $140,000 on November 4, 2025, with 79.41% voting yes on Proposition 13 (Ballotpedia).
In Travis County, you qualify if you own the home and live in it as of January 1 of the tax year, and the filing deadline is April 30 (Travis Central Appraisal District). TCAD says you can submit the form now and it will apply to the year you qualify.
What that means for a mid-year move: close in June, and the Travis County rule looks at who owned and lived in the home on January 1, so your exemption generally starts the following tax year. TCAD lists limited exceptions on its homestead page, so check it for your situation. There's no reason to wait on the paperwork.
How fast do I need to switch my driver license and car registration?
You have 90 days after moving to Texas to get a Texas driver license, and you can drive on your valid out-of-state license until then (Texas DPS). Your car is on a tighter clock: 30 days to register it (TxDMV).
Travis County is an emissions county, so your car has to pass inspection before you can register it (Texas DPS). Budget for the new resident tax on your vehicle too. TxDMV says it can be $90, or the difference between the sales tax you paid in your old state and the Texas rate.
Put the inspection on the calendar the first week. Registration can't happen until the car passes.
What is the Austin housing market doing right now?
Prices are down from a year ago. In August 2026, the City of Austin median sale price was $560,000, down 4.3% year over year, with 844 closed sales and 4.6 months of inventory (Unlock MLS, released September 15, 2026).
The wider Austin-Round Rock-San Marcos metro tells a different price story. Its August median was $412,000, down 6.4%, with 5.1 months of inventory and 13,676 active listings (Unlock MLS). That $148,000 gap between the city and the metro is the whole reason your search area matters as much as your budget. [LINK: Austin community page]
City listings are thinner than last year, though. Austin had 4,554 active listings in August, down 14.5% from August 2025 (Unlock MLS). Lower prices don't mean you get to take your time on the right house.
How hot does Austin actually get?
Hot enough that you should plan around it. The National Weather Service puts Austin's average first 100-degree day at July 9 and the average last one at August 21.
In a bad year it goes far longer. In 2011, Austin hit 100 degrees or more on 90 days (National Weather Service).
If you can, time your move and your house hunting outside that July and August stretch. Movers, you and your kids will all thank you.
Frequently asked questions
Does Texas have a state income tax?
No. Texas does not have a personal income tax, according to the Texas Comptroller. People moving to Austin from out of state still pay a state sales tax of 6.25%, plus up to 2% in local sales tax for a maximum of 8.25%, and property tax on any home they own. Compare the full tax picture, not just your paycheck
.
How long do I have to get a Texas driver license after moving to Austin?
You have 90 days after moving to Texas to get a Texas driver license, and you can drive on a valid out-of-state license during that window, according to Texas DPS. Your vehicle has a shorter deadline. TxDMV requires new residents to register within 30 days, and in Travis County the car must pass inspection first.
When should I file for a homestead exemption in Austin?
File with the Travis Central Appraisal District by April 30. In Travis County you qualify if you own and live in the home as of January 1 of the tax year, and TCAD says you can submit the form now so it applies to the year you qualify. The exemption takes $140,000 off your home's taxable value for school district taxes.
What is the median home price in Austin right now?
As of August 2026, the median sale price in the City of Austin was $560,000, down 4.3% from August 2025, according to Unlock MLS. Across the wider Austin-Round Rock-San Marcos metro, the August 2026 median was $412,000, down 6.4% from a year earlier. Where you search around Austin moves your price as much as your budget does.
