Remote Workers Moving to Hill Country: Tax Impact Decoded

Are you a remote worker from a high-tax state wondering if a move to the Texas Hill Country, specifically New Braunfels, will genuinely improve your financial bottom line and what the true total cost of ownership entails?

The Complete Picture

As a real estate agent specializing in New Braunfels real estate and the surrounding Hill Country, I consistently work with remote workers from states like California, New York, and Illinois who are tired of high state income taxes, sky-high housing costs, and the daily grind of congested city life. They’re drawn to our scenic beauty, strong sense of community, and the flexibility that comes with a remote lifestyle. But many arrive with only part of the financial puzzle solved.

The uncertainty around Texas’s tax structure—especially when compared to their current state’s total cost of ownership—can lead to hesitation or even costly missteps. This isn’t just about finding a great house; it’s about making a smart, strategic financial move. My job is to remove the guesswork and deliver a clear, data-backed roadmap so you can relocate with confidence.

Key Insights

Many remote professionals are laser-focused on Texas’s lack of a state income tax—and rightly so. That’s a major financial win. But it’s only one part of a much bigger picture. You also need to account for property taxes, insurance, and your day-to-day cost of living. Let’s break it down with precision.

The Texas Income Tax Advantage: Real Savings, Real Fast

Texas is one of just nine states with no state income tax. For remote workers earning solid incomes, this translates to a direct, measurable boost in take-home pay:

* **Scenario 1: California Remote Worker (Average Income Tax Rate ~6.5%)**
* Annual income: $180,000
* California state income tax: ~$11,700/year
* **Texas Savings:** $11,700/year | **5-Year Savings:** $58,500

* **Scenario 2: New York City Remote Worker (Average Income Tax Rate for City and State Combined ~9.2%)**
* Annual income: $180,000
* New York state income tax: ~$16,500/year
* **Texas Savings:** $16,500/year | **5-Year Savings:** $82,500

These are not theoretical figures. This is real money that can be redirected toward building equity in a home, investing, or simply improving your lifestyle.

Property Taxes: The Texas Reality Check

Yes, Texas property taxes are higher than what you might be used to—but they fund important local services. In Hill Country homes, property tax rates generally fall between 1.8% and 2.2% of the assessed home value.

* **Example: Median Home in New Braunfels ($338,000)**
* At 1.8%: ~$6,084/year or ~$619/month
* At 2.4%: ~$8,112/year or ~$732/month

These taxes vary by neighborhood, school district, and MUD involvement. When I’m working with clients, I always provide detailed tax estimates based on the exact property you’re considering. This is critical for accurate budgeting.

Insurance: Protecting Your Investment

Texas weather can be unpredictable, and that means homeowners insurance here is a bit on the higher side. You may also need separate coverage for windstorm, hail, or flooding—especially if you’re near the Guadalupe River or in a FEMA-designated floodplain.

* **Homeowner’s Insurance:** $2,500–$4,500 annually
* **Flood Insurance (if needed):** $500–$2,000+ annually

These are not hidden costs when you’re working with a local expert. I help you factor them in from day one so there are no surprises at closing—or your first renewal.

Cost of Living: Beyond Housing

The overall cost of living in New Braunfels is generally lower than the major metro areas you’re likely coming from. Compared to Austin, San Francisco, or Manhattan, the savings add up fast.

* **Utilities:** In line with national averages, though summer AC use can spike costs
* **Groceries:** Slightly below national average
* **Gas:** Lower than national average, especially compared to California and New York
* **Sales Tax:** 8.25%

It’s not just about home prices—it’s also about what you spend on food, gas, and services every day. That’s where New Braunfels shines for remote workers.

Real-World Scenarios: Net Financial Impact Over 5 Years

Let’s put all this into context with some realistic side-by-side comparisons. These examples focus on buyers earning $180,000 annually and purchasing a $338,000 home in New Braunfels.

**Scenario A: California Remote Worker Relocates to New Braunfels**

* **California Costs:**
* Income Tax: $11,700/year
* Property Tax (on $750k home): $8,250/year
* Insurance: $2,500/year
* **Total Annual:** $22,450 | **5-Year Total:** $112,250

* **Texas Costs (New Braunfels):**
* Income Tax: $0
* Property Tax: $8,112/year
* Insurance: $2,500/year
* **Total Annual:** $10,612 | **5-Year Total:** $53,060

* **Net 5-Year Savings:** **$59,190**

**Scenario B: New York Remote Worker Relocates to New Braunfels**

* **New York City Costs:**
* Income Tax: $16,500/year
* Property Tax (on $600k home): $9,600/year
* Insurance: $1,600/year
* **Total Annual:** $27,700 | **5-Year Total:** $138,500

* **Texas Costs (New Braunfels):**
* Income Tax: $0
* Property Tax: $8,112/year
* Insurance: $3,500/year
* **Total Annual:** $10,612 | **5-Year Total:** $53,060

* **Net 5-Year Savings:** **$82,060**

When you combine these savings with the significantly lower price of homes in New Braunfels, you’re not just saving money—you’re setting yourself up for long-term financial stability.

Market Reality

The numbers tell the story. With 3,486 inbound moves in just the first five months of 2025, the 78130 ZIP code ranks as the second most relocated-to area in the country. Remote workers are a driving force behind this trend, and they’re fueling a healthy, competitive New Braunfels market.

At a median home price of $338,000, New Braunfels still offers tremendous value—especially when you factor in the quality of life, access to the Comal and Guadalupe Rivers, and proximity to both Austin and San Antonio. But with high demand, smart buyers need to move decisively. That’s where I come in.

Action Steps for Remote Workers Considering the Hill Country

If you’re thinking about making the move, here’s your strategic checklist:

1. Perform a Detailed Personal Financial Audit: Calculate your current income tax, housing costs, and general expenses. Know your baseline.
2. Engage a Local Real Estate Expert Early: I can provide real-time data, identify property tax scenarios by neighborhood, and refer you to trusted local lenders.
3. Secure Pre-Approval from a Texas Lender: Their underwriting will reflect Texas-specific costs, which out-of-state lenders often miss.
4. Prioritize Needs vs. Wants: From fiber internet to home offices, I’ll help you identify the features that matter most in our Hill Country homes.
5. Plan a Reconnaissance Visit: Tour neighborhoods, test commutes, and experience what life in New Braunfels really feels like.
6. Understand the Property Tax Appraisal Process: Learn how values are assessed and how to protest if needed. I’ll walk you through it.
7. Budget for Relocation Costs: Include moving services, setup fees, and potential initial repairs in your financial plan.

Frequently Asked Questions

1. What are the primary tax differences for remote workers moving to Hill Country Texas?

   The biggest shift is the absence of a state income tax in Texas, giving you more take-home pay. While property taxes are higher, the net effect is often financially favorable when you factor in the total cost of homeownership.

2. How do Texas property taxes compare to states like California or New York?

   Texas rates are higher—typically 2.0% to 2.8%—but because home prices in New Braunfels are lower, your actual dollar amount paid may still be less than what you’d owe in higher-cost states with lower tax rates.

3. Are there any “hidden” costs remote workers should be aware of when relocating to the Hill Country?

   Insurance is the most commonly overlooked cost—especially policies that include windstorm or flood coverage. Also, remember property taxes are paid in arrears, which may affect your closing costs.

4. How does the median home price in New Braunfels ($338,000) impact my financial decision?

   It’s a game-changer. Lower purchase prices mean smaller mortgages, lower monthly payments, and less interest over time. It’s a major long-term wealth builder.

5. What specific steps should I take to ensure I’m making a sound financial decision?

   Start with a side-by-side cost comparison. Then work with me and a Texas lender to get accurate estimates on property taxes, insurance, and New Braunfels real estate values. That’s your road map to a financially smart move.

Closing

Choosing to relocate to the Texas Hill Country isn’t just about lifestyle—it’s a calculated financial upgrade for many remote workers. Between zero state income tax, a lower median home price, and a favorable cost of living, the numbers overwhelmingly point to a better bottom line.

With my experience and local insight, I’ll help you make a move that feels good today and pays dividends for years to come. Let’s map out your plan.

Ready to talk strategy? Call Cody Posey at 830.360.5569.