2026 Texas Homeownership Costs: Austin vs San Antonio vs Killeen
In 2026, homeowners in Austin will usually pay more beyond the mortgage than similar buyers in San Antonio or Killeen. Austin’s amended 2025–26 city tax rate of roughly 52.4 cents per $100 of taxable value, higher home prices, steeper insurance, and fresh utility hikes all stack up. San Antonio’s costs are more moderate, while Killeen often offers the lowest entry price but a relatively high city tax rate. This overview breaks down taxes, utilities, insurance, and maintenance so you can compare real monthly ownership costs, not just list prices.
Austin 2026 Cost Snapshot
Austin combines higher home values with rising property taxes, utility hikes, and some of the steepest insurance pressure in Texas.
- City’s adopted 2025–26 tax rate is about $0.524 per $100 of taxable value, adding roughly $100 a year for the average city bill.
- All-utilities customers saw rate changes approved for FY 2026, adding around $9.54 a month to typical bundled bills.
- With higher home prices and storm exposure, many households face annual insurance bills that materially exceed national averages.
San Antonio 2026 Cost Snapshot
San Antonio usually lands in the middle: more affordable homes than Austin, but big-city services and Texas-level insurance costs.
- City leaders funded tens of millions for home rehabilitation and repair programs in the FY 2026 budget, signaling aging stock.
- Water and wastewater rate changes for SAWS have been floated for early 2026, which could nudge utility bills upward.
- Insurance costs still reflect statewide hazard patterns, but lower average home values can temper total dollar premiums compared with Austin.
Killeen 2026 Cost Snapshot
Killeen often looks cheapest on paper, but its city tax rate and typical electricity bills still deserve attention before you buy.
- The city has moved toward a property tax rate around $0.7014 per $100 of valuation for the 2025 tax year (FY 2026).
- Average electricity bills in the broader Oncor/Killeen area often fall in the mid-$150-per-month range at typical usage levels.
- Lower home values help maintenance and insurance budgets, but older properties may need more immediate work after closing.
How to Compare All Three
To compare cities honestly, you need to stack every recurring cost on one sheet instead of fixating on purchase price alone.
- Estimate taxes, insurance, utilities, HOA dues, and routine maintenance by city, not just principal and interest on a mortgage.
- Run side-by-side scenarios so you can see whether “cheaper house, higher utilities” actually wins over time.
- Use calculators and local data to test realistic 2026 payment ranges before you narrow your search to one metro.
Key Takeaways
- Austin homeowners typically face the highest non-mortgage costs in 2026, combining higher city taxes, utility increases, strong insurance pressure, and larger average home values.
- San Antonio usually lands in the middle, with more moderate home prices and municipal costs, plus big-city services that impact taxes, utilities, and aging housing stock.
- Killeen often offers the lowest entry home values but a relatively high city tax rate and summer electricity bills that still matter for tight budgets.
- Texas homeowners face some of the country’s fastest-rising insurance premiums, driven by severe weather losses, rebuilding costs, and insurer risk management decisions.
- Using a 1–4% of home value maintenance rule keeps you honest about long-term repair costs, especially for older or larger properties.
- The smartest 2026 budget compares complete monthly ownership costs across Austin, San Antonio, and Killeen instead of only asking, “What’s the price per square foot?”
How 2026 Ownership Costs Differ by City
In 2026, Austin, San Antonio, and Killeen present very different long‑term ownership profiles once you factor in taxes, insurance, utilities, and maintenance. Austin stacks higher non‑mortgage costs on top of already elevated home prices. San Antonio offers a more balanced picture but still reflects statewide insurance pressure. Killeen generally looks cheapest, yet rising premiums and strong tax rates mean you cannot assume it is automatically “cheap” to own there.
- Austin’s premium profile: Higher purchase prices and a recently adopted city tax rate above fifty cents per hundred dollars of value push carrying costs upward, according to the amended FY 2025–26 budget release.
- San Antonio’s middle ground: A lower median sale price and city investments in housing and infrastructure temper expenses, though tax and insurance bills remain significant as the market absorbs recent appreciation.
- Killeen’s perceived affordability: Median listing prices in the high two hundreds make Killeen feel accessible, but owners still face meaningful tax, insurance, and utility obligations across the metro.
- BAH and income realities: Households relocating for work or Military service must ensure 2026 take‑home pay can comfortably absorb non‑mortgage line items in each market, not just the mortgage payment.
- Decision framing: Comparing only mortgage payments between cities underestimates true lifestyle cost; this year, non‑mortgage expenses often decide which metro actually fits your financial comfort zone.
2026 Property Taxes in Austin, San Antonio, and Killeen
Property taxes are one of the biggest monthly differences between cities, especially when valuations and tax rates move at the same time. Austin’s amended Fiscal Year 2025–26 budget includes a city tax rate of roughly $0.524 per one hundred dollars in value, a change approved alongside broader budget adjustments. Killeen adopted a higher city rate just over seventy cents for the 2025 tax year, applied to generally lower home values. Total bills in all three metros also reflect county, school district, and special district rates layered on top of city levies.
- Austin city rate context: The amended FY 2025–26 Austin budget pegs the city portion of the bill at 52.4017 cents per hundred dollars of valuation, separate from school and county rates.
- Killeen’s adopted rate: Killeen’s FY 2026 tax rate of about $0.7014 per hundred dollars sits higher but is tied to more modest median home values across the Killeen‑Temple area.
- San Antonio totals: San Antonio’s full bill comes from city, county, school district, and other jurisdictions, typically yielding an effective rate in roughly the two to three percent range of taxable value.
- Appraisals matter: Rising appraised values can increase taxes even if nominal rates hold steady, so compare both percentage and dollar change estimates built into 2026 notices and projections.
- Use tax resources: The Texas Comptroller’s property‑tax resources and local appraisal district tools help you estimate 2026 bills and understand exemption options.
Illustrative 2026 Property Tax Examples
The exact property tax bill for a 2026 homeowner depends on overlapping jurisdictions and exemptions. Still, it helps to see how similar percentage rates translate into different annual costs at typical price points in each city. The table below uses approximate late‑2025 median values for illustration and applies simple two and two‑and‑a‑half percent scenarios to show how quickly tax obligations scale with price. These examples are directional only; always verify current rates before buying.
| City | Illustrative home value | Example annual tax at 2.0% | Example annual tax at 2.5% |
|---|---|---|---|
| Austin | $600,000 | $12,000 | $15,000 |
| San Antonio | $300,000 | $6,000 | $7,500 |
| Killeen | $297,000 | $5,940 | $7,425 |
Utilities and Everyday Bills in 2026
Utility bills are another non‑negotiable piece of the 2026 budget, and they are moving higher across Texas. In Austin, city utilities approved Fiscal Year 2026 rate changes that increase a typical all‑utilities customer’s bill by about $9.54 per month. Killeen households see electricity charges driven by mid‑teens‑per‑kilowatt‑hour pricing and average bills in the low one‑hundred‑fifties, while San Antonio residents may face new SAWS water and wastewater rates after council decisions later in the year.
- Austin utility shifts: FY 2026 rate changes for energy, water, drainage, and transportation fees all nudge monthly bills higher, especially for larger and less efficient properties.
- Killeen power costs: Recent estimates put average Killeen electricity bills around the low one‑hundred‑fifties per month based on roughly nine hundred to one thousand kilowatt‑hours of usage.
- San Antonio water and sewer: Potential SAWS rate changes can meaningfully shift total housing costs, particularly for larger yards, irrigation, or homes with older plumbing and fixtures.
- Weather and consumption: Extreme summer heat in all three markets makes conservation strategies and efficient HVAC systems critical to controlling long‑term utility spending.
- Assistance programs: Federal energy‑bill help outlined at USA.gov can support qualifying households facing high seasonal usage or unexpected bills.
Why Texas Homeowners Insurance Keeps Climbing
Homeowners insurance has become a headline expense for Texas owners, and 2026 will not reverse that trend. Analyses show Texas premiums among the highest in the country, with average annual costs already several thousand dollars above national benchmarks. Recent years brought double‑digit increases driven by more frequent severe storms, hail, and flooding, plus sharply higher building‑material and labor costs. Insurers are also tightening underwriting and raising deductibles, shifting more risk back to homeowners.
- Storm and hail losses: Texas has logged numerous billion‑dollar disasters over the last decade, pressuring carriers to raise rates, tighten guidelines, or exit certain ZIP codes entirely.
- Construction inflation: Higher prices for lumber, roofing, and skilled labor drive up claim payouts, which in turn push base premiums higher across Austin, San Antonio, and Killeen.
- Reinsurance and regulation: Global reinsurance costs and state‑level oversight influence how aggressively insurers price new and renewal policies, especially after heavy‑loss years.
- Austin versus other cities: Higher home values in Austin magnify the dollar impact of percentage‑based insurance increases compared with more modestly priced San Antonio and Killeen homes.
- Deductibles and gaps: Larger wind and hail deductibles mean many smaller repairs are effectively self‑funded, making an emergency reserve non‑optional for 2026 owners.
Maintenance and Reserve Planning by Market
Maintenance is both predictable and easy to underestimate. A common rule of thumb is budgeting one to four percent of home value annually for repairs, systems, and exterior work. In Austin, where many homes run near or above six hundred thousand dollars, this creates a much larger recurring line item than in San Antonio or Killeen. Age, construction quality, and exposure to wind and heat can all push you toward the higher end of the range.
- Austin maintenance reality: Even at one percent, a six hundred thousand dollar home implies six thousand dollars per year before any major system failures or cosmetic upgrades.
- San Antonio range: At three hundred thousand, a one to four percent rule produces a wide three to twelve thousand dollar annual planning band, depending on age and complexity.
- Killeen implications: Lower property values still demand roughly two to eight thousand dollars each year for a typical mid‑two‑hundreds home, especially in older neighborhoods.
- Climate wear: Texas heat stresses roofs, HVAC units, and exterior paint, so neglect usually compounds into more expensive repairs and insurance claims later.
- Reserve strategy: Treat maintenance like a monthly bill by auto‑transferring funds into a dedicated savings bucket for inevitable 2026 repairs and replacements.
Sample 2026 Maintenance Budgets by City
While no two homes are identical, rough maintenance ranges can help buyers compare cities realistically. The table below uses approximate late‑2025 pricing benchmarks and applies one and three percent maintenance assumptions. Actual needs will vary with home age, finishes, and prior care, but the spread illustrates why similarly sized homes may be more financially demanding in Austin than in San Antonio or Killeen, even when mortgages feel comparable.
| City | Illustrative home value | Annual maintenance at 1% | Annual maintenance at 3% |
|---|---|---|---|
| Austin | $600,000 | $6,000 | $18,000 |
| San Antonio | $300,000 | $3,000 | $9,000 |
| Killeen | $297,000 | $2,970 | $8,910 |
Putting It Together: Example 2026 Non‑Mortgage Cost Scenarios
To decide which city truly fits, you need a composite view of non‑mortgage expenses layered onto an estimated 2026 principal and interest payment. The example scenarios below show how property taxes, insurance, utilities, and maintenance might add up annually for an owner in each market. They are not predictions, but they offer a directional feel for how quickly carrying costs climb with price and location, even when nothing “goes wrong.”
| City & scenario | Example home price | Estimated annual non‑mortgage costs | Notes |
|---|---|---|---|
| Austin move‑up buyer | $600,000 | ≈$27,000 | Assumes 2% property tax, higher‑end Texas insurance, elevated utilities after 2026 rate changes, and one percent maintenance in a rising‑cost environment. |
| San Antonio mid‑range buyer | $300,000 | ≈$15,000 | Uses 2% tax, mid‑range statewide insurance estimates, moderate utilities, and one percent maintenance for a typical three‑bedroom single‑family home. |
| Killeen starter home buyer | $250,000–$300,000 | ≈$12,000–$14,000 | Reflects strong local tax rate, competitive power prices, and statewide insurance pressures on a more modestly priced property. |
- Focus on totals: Compare cities using total annual ownership cost, not just mortgage payment, taxes, or insurance line items in isolation.
- Check your bracket: Higher earners often feel property‑tax and insurance increases more acutely as they move into pricier neighborhoods or new construction.
- Plan for volatility: Insurance and tax dynamics can change faster than income, so build buffer room into 2026 and 2027 budgets before committing.
- Local nuance: Micro‑markets inside each metro can be materially cheaper or more expensive depending on age, HOA dues, and risk exposure.
How to Compare Cities and Choose a 2026 Budget Fit
Deciding between Austin, San Antonio, and Killeen in 2026 comes down to honest self‑assessment and disciplined modeling. Start by clarifying how much volatility you can tolerate in taxes, insurance, and utilities. Then line up realistic price ranges in each city and run multiple scenarios that include reserves for maintenance. Finally, weigh the lifestyle tradeoffs—commute, schools, amenities—against the ongoing cost profile, not just the initial excitement of an accepted offer.
- Define comfort zones: Decide on a monthly ceiling for total housing costs before looking at listings in any of the three metros.
- Model city‑specific scenarios: Run parallel calculations for Austin, San Antonio, and Killeen at the same principal and interest level to see how non‑mortgage costs spread.
- Include reserves: Treat maintenance and insurance deductibles as mandatory savings items rather than optional “if there is money left” categories.
- Revisit annually: After moving, update your 2027 and 2028 budgets with new tax valuations, insurance renewals, and utility histories to stay ahead of increases.
The Bottom Line
In 2026, Austin, San Antonio, and Killeen each deliver very different ownership experiences once you include taxes, insurance, utilities, and maintenance. Austin offers big‑city opportunity but demands the largest non‑mortgage budget. San Antonio balances affordability with amenities and a growing economy, while Killeen often stretches dollars furthest for households prioritizing overall cost. Whichever market you choose, build your decision around total ownership cost—not just the mortgage—so the home you win this year still feels comfortable several budget cycles from now.
References Used
- City of Austin FY 2025–26 Budget: Property‑tax rate details and context for amended 2026 decisions. Austin budget release
- Austin utility rate highlights: Newsletter outlining Fiscal Year 2026 rate and fee changes and average bill impact. City of Austin Utilities
- Killeen property‑tax data: Adopted FY 2026 tax rate and supporting budget documentation. City of Killeen budget
- San Antonio pricing context: Recent median sale price trends for San Antonio’s housing market. Redfin San Antonio data
- Killeen‑Temple pricing: Federal Reserve series tracking median listing prices in the Killeen‑Temple metro. FRED Realtor.com series
- Texas insurance cost context: Analysis of homeowners‑insurance premiums by state and relative ranking for Texas. AARP insurance overview
- Texas property‑tax basics: Official guidance on structures, rates, and homeowner resources statewide. Texas Comptroller property tax
- Energy‑bill assistance: Federal and state resources for households needing help with rising utility costs. USA.gov energy help
Frequently Asked Questions
What are the average home prices in Austin, San Antonio, and Killeen going into 2026?
As of late 2025, typical home values in Austin sit significantly above national norms, with many neighborhoods still priced in the mid- to upper-$400,000s and beyond. San Antonio’s typical values are lower, often in the low-to-mid-$300,000s, while Killeen tends to post typical values in the low-$200,000s. Exact numbers shift month to month, so always pull current local data before finalizing your budget.
What is driving homeowners insurance costs higher in Texas?
Texas insurance premiums are rising because insurers are paying out more for claims tied to severe weather, hail, hurricanes, and extreme heat. Rebuilding costs have also jumped due to inflation in labor and materials. Carriers respond by raising rates, tightening coverage, or exiting high-risk areas. That combination drives average premiums well above national levels, and many forecasts anticipate additional increases into 2026.
Why does Austin usually have higher non-mortgage costs than San Antonio or Killeen?
Austin combines higher average home values with an adopted 2025–26 city tax rate increase, recently approved utility hikes, and strong insurance pressure. Because maintenance is often budgeted as a percentage of property value, higher prices amplify upkeep dollars. When you stack city taxes, utilities, insurance, and maintenance, Austin typically produces higher total ownership costs than comparable properties in San Antonio or Killeen.
How big a difference do property tax rates make between the three cities?
Property tax rates matter because they hit every year, not just at closing. Austin’s city rate sits around $0.524 per $100 of taxable value for 2025–26, while Killeen’s city rate is closer to $0.7014. San Antonio’s city rate lands between those points. When you add school and county portions, the annual tax bill can easily differ by hundreds or thousands of dollars depending on location and home value.
How should I budget for utilities in Austin, San Antonio, and Killeen in 2026?
Start by reviewing recent bills for similar-sized homes and then adjust for announced rate changes. In Austin, FY 2026 utility adjustments add about $9.54 per month for average all-utilities customers. Killeen’s typical electricity bills often land in the mid-$150 range at standard usage, while San Antonio households must account for CPS Energy and SAWS updates. Always add a cushion for heavy summer air-conditioning use.
How much should I set aside for maintenance each year?
A common planning rule is to save one to four percent of your home’s value annually for maintenance and repairs. Newer, smaller, or simpler homes may sit at the low end of that range, while older properties or those with pools, complex roofs, and big trees trend higher. In higher-priced markets like Austin, even one percent can mean a five-figure annual maintenance budget.
Are homeowners insurance costs really different between Austin, San Antonio, and Killeen?
Statewide averages give a baseline, but premiums vary by ZIP code, construction type, claims history, and insurer appetite. Austin’s higher home values and dense development often translate into larger absolute premiums, while San Antonio and Killeen may see lower dollar amounts but are still exposed to hail, wind, and storm risks. The only reliable method is to obtain quotes tied to specific addresses and coverage levels.
How do I compare 2026 costs if I am not sure which city I want yet?
Pick a couple of realistic price points and run parallel scenarios for Austin, San Antonio, and Killeen. For each city, estimate principal and interest, taxes, insurance, utilities, HOA dues, and maintenance using online calculators and local data. That side-by-side comparison usually reveals which metro best fits your comfort payment, commute, and lifestyle without overextending your budget.
Should I prioritize lower non-mortgage costs over location or school district?
Non-mortgage costs should influence your decision, but they are not the only factor. A cheaper total payment may not be worth it if it dramatically increases your commute, undermines school preferences, or disconnects you from support networks. The goal is to find a balance where taxes, insurance, and utilities are sustainable while your daily life still works for work, family, and long-term plans.
How often should I revisit my ownership budget after I buy?
Revisit your budget at least annually and anytime your insurance renews, tax assessments change, or utilities adopt new rates. In a state like Texas, where insurance and taxes can move quickly, small shifts compound over time. Adjust savings targets and discretionary spending as needed so rising non-mortgage costs do not quietly erode your financial stability.
