Side-by-side comparison of mortgage costs, property taxes, closing costs, and homeowners insurance between Arizona and Texas. Updated for 2026.
Arizona wins 3 of 6 cost categories, making it the more affordable state for homebuyers overall. However, Texas has a lower total cost when combining home price, closing costs, and insurance. Both states offer first-time buyer programs — explore the state pages for full details.
Estimated PITI payments assuming 10% down, 6.5% rate, 30-year fixed mortgage with PMI.
The monthly payment difference is $15/month — that’s $180/year or $5K over the life of a 30-year loan. Buying in Texas is the more affordable option based on median home prices with identical loan terms.
Based on the 28% debt-to-income rule — your monthly housing payment should not exceed 28% of gross monthly income.
To afford the median home in Arizona, you need a household income of approximately $115K/year. In Texas, you need $114K/year — less by $643/year. With similar income requirements, your choice between these states can focus on lifestyle and career factors rather than pure affordability.
Home prices in Arizona and Texas are relatively close, with only a 18% difference ($70K). At similar price points, your decision should focus on the other cost factors: property taxes, insurance, closing costs, and the overall quality of life each state offers. Small percentage differences in tax rates compound over decades of homeownership.
Property taxes are dramatically different: Arizona charges 0.62% while Texas charges 1.8%, a gap of 1.18 percentage points. On the respective median homes, this means Texas homeowners pay roughly $5,580 per year in property taxes versus $2,356 in Arizona. Over 30 years of homeownership, this difference alone can add up to six figures. Retirees on fixed incomes should weigh this heavily.
Homeowners insurance is significantly cheaper in Arizona ($2,100/year) compared to Texas ($3,800/year). That's an extra $1,700 per year — or $142/month — eating into your budget in Texas. Texas's high insurance costs are often driven by severe weather risks (hurricanes, tornadoes, or wildfires), which also affect availability of coverage.
Both states offer down payment assistance for first-time buyers. Arizona's Home Plus AZ provides Up to 5% DPA grant, while Texas's TDHCA My First Texas Home offers Up to 5% DPA grant. These programs can significantly reduce your upfront costs and make homeownership accessible even if you haven't saved a full 20% down payment. Check eligibility requirements on each state's housing finance agency website — income limits and purchase price caps apply.
The bottom line: property taxes are the defining difference here. Texas's 1.8% rate versus Arizona's 0.62% means Arizona homeowners save approximately $3,224 every year on taxes alone. Over a 30-year mortgage, that difference compounds into tens of thousands of dollars — making it the most important cost factor in this comparison.