The True Cost of Owning a $2M Home in Austin (Taxes, Insurance, Maintenance, HOA)

Plan on $70,000 to $100,000 a year to carry a $2M Austin home before you make a single mortgage payment. Property taxes are the largest line by a wide margin- typically $34,000 to $42,000- followed by maintenance at $20,000 to $30,000 and insurance at $6,000 to $12,000. HOA dues are the wild card: zero in much of central Austin, and five figures a year in a handful of gated communities.

What are property taxes on a $2M home in Austin?

This is the big one, and it's the number Californians and New Yorkers consistently underestimate. Travis County's combined effective rate generally runs 1.8% to 2.3% of appraised value, depending on which taxing entities you fall under. In the City of Austin, you're typically paying into Austin ISD, the City, Travis County, Austin Community College, and Central Health. That stack lands around $2.07 per $100 of value. On a $2M primary residence with a homestead exemption in place, expect roughly $34,000 to $38,000 a year. Without homestead, a second home, a pied-à-terre, an investment property, you're closer to $41,000 to $42,000.

A few things that actually move this number:

File your homestead exemption. It removes $140,000 from your school-district taxable value, and both the City of Austin and Travis County apply a 20% exemption on top of that. On a $2M home, that's real money, and I still meet people two years into ownership who never filed. Deadline is April 30 with the Travis Central Appraisal District.

The 10% cap is your friend. Once homestead is established, your assessed value can't rise more than 10% per year regardless of what the market does. In a fast-appreciating stretch, that cap is worth more than the exemption itself.

Eanes runs cheaper than you'd think. Westlake Hills and Rollingwood properties aren't inside the City of Austin, and the City of West Lake Hills rate is very low. Total effective rates out there often come in below City of Austin addresses- one of the few places where the more expensive neighborhood has the lighter rate.

Protest every year. Not sometimes. Every year. The deadline is May 15 or 30 days after TCAD mails your notice, whichever is later.

What does insurance cost on a $2M Austin home?

Budget $6,000 to $12,000 a year, and be prepared for the top of that range.

Texas homeowners insurance is up more than 55% since 2019, driven by construction costs, hail frequency, and the simple fact that replacement values have climbed. Austin homes in the $800K to $1M range routinely exceed $4,500 a year now. At $2M, with the finish levels these houses carry, $6,000 is a floor and $10,000-plus is common.

What pushes you toward the high end:

• A pool, especially with a spa and automation
• Wildland-urban interface exposure — a lot of Westlake, Barton Creek, and Spanish Oaks properties sit in it, and carriers price it
• Older roofs. Central Austin's hail history means an aging roof can cost you the policy, not just the premium
• High-value contents, which often push you into a specialty carrier

Get an insurance quote during your option period. Not after. I've watched a $9,000 annual premium change how a buyer felt about a house, and that's a conversation you want to have while you can still walk.

How much should you budget for maintenance?

The rule of thumb is 1% to 2% of value per year. On a $2M house that's $20,000 to $40,000, and in Austin I'd plan on the middle: $20,000 to $30,000 annually, averaged over time.

That's not a smooth number. Some years it's $6,000. Then the year you replace the HVAC on a 5,000-square-foot house, often two or three units, it's $40,000 in one line. Roofs run $30,000 to $80,000 depending on material. Pool resurfacing is $15,000 to $25,000.

Add the recurring items people forget to count: pool service, lawn and landscape (these lots are big), pest control, HVAC servicing twice a year, gutters. On a $2M property, that bundle alone is commonly $800 to $1,500 a month.

Do you pay HOA fees in Austin's luxury neighborhoods?

This varies more than any other line, so don't assume.

Tarrytown, Pemberton Heights, Old Enfield, most of Westlake Hills: typically no HOA, or a voluntary neighborhood association running $50 to $500 a year. Effectively zero.

Barton Creek, Spanish Oaks, Rough Hollow, Lakeway communities: real HOAs, generally $1,500 to $6,000 a year, sometimes more where there's gated access and amenity infrastructure.

Country club membership is the line that actually matters. It's not an HOA fee and it's often not required, but in the communities where it's the point of living there, initiation can run well into five or six figures with monthly dues on top. If a club is part of why you're buying, price it separately and price it early.

What does it all add up to?

A realistic annual carrying cost on a $2M Austin home, excluding mortgage principal and interest:

Call it $6,000 to $8,000 a month before your mortgage. For buyers coming from a state with income tax and cheap property tax, this is the arithmetic that reframes the whole decision — Texas has no state income tax, but it collects on the back end, and at the $2M level the back end is substantial.

The Bottom Line

A $2M Austin home costs roughly $70,000 to $100,000 a year to own, and taxes are about half of it. None of these numbers should scare you off — they're normal for this tier — but they should be in your model before you write an offer, not after your first tax bill. Two things I'd tell any buyer at this level: file your homestead exemption immediately, and get a real insurance quote during your option period.

Frequently Asked Questions

Are property taxes lower in Westlake than in Austin?
Often yes, on a rate basis. Westlake Hills and Rollingwood sit outside the City of Austin, and the local city rates are low, so the combined effective rate frequently comes in under a comparable City of Austin address. Because Westlake values run higher, though, the actual dollar bill can still be larger. Always pull the specific parcel from TCAD rather than working off a neighborhood average.

Can I lower my property tax bill?
Two reliable levers: file your homestead exemption, and protest your appraisal every single year. Between the $140,000 school exemption, the local 20% exemptions, and the 10% annual assessment cap, an established homestead is worth thousands a year on a $2M property. Many owners at this level use a protest firm on contingency.

How much does insurance go up each year in Austin?
Rate growth has cooled considerably — from roughly 18.7% in 2024 to about 4.3% in 2025, with 2026 tracking near 3%. That said, your individual renewal depends far more on your roof age, claims history, and whether your carrier has repriced your replacement cost.

Should I budget differently for a new build versus an older home?
Yes. A new build will run lighter on maintenance for the first five to seven years but often heavier on taxes, because it's assessed at current value with no cap history behind it. An older Tarrytown or Pemberton home may carry a lower assessed value but will demand more from you on systems, roof, and foundation. Neither is cheaper overall — they just bill you on different schedules.