How Much Are Property Taxes on a $2 Million, $3 Million or $5 Million Home in Westlake Austin?
If you’re considering buying a $2 million, $3 million or $5 million home in Westlake Austin, there’s one number you need to understand before deciding what you can comfortably afford:
The property tax bill.
For buyers moving to Austin from another part of Texas or another state, property taxes can be one of the more surprising parts of buying a home here.
Texas doesn’t have an individual state income tax, but property taxes can represent a significant part of your annual cost of homeownership, especially when you’re buying a luxury property in Westlake or Eanes ISD.
And there’s one mistake we see buyers make fairly often:
They look at the seller’s current property tax bill and assume theirs will be about the same.
That isn’t necessarily the case.
If you’re buying in Westlake, 78746, 78733, Cuernavaca or elsewhere in Eanes ISD, it’s important to understand the specific property, its taxable value, applicable exemptions and taxing jurisdictions before estimating what you might actually pay.
We are Albina Rippy, Natasha Antonioni and Holly McCormick with The Council Real Estate Group, real estate agents serving Austin, Texas, with a particular focus on Westlake, Cuernavaca and Eanes ISD.
Together, we help buyers look beyond the listing price and understand the bigger picture of buying and owning a home here. Albina’s background as a former CPA brings an additional financial perspective to conversations about property taxes, carrying costs and the overall cost of homeownership.
At The Council, we call that Real Estate Done Intentionally.
Here’s what buyers should know.
How Are Property Taxes Calculated in Westlake Austin?
Let’s start with the basics.
Your property tax bill is based on the property’s taxable value and the tax rates of the taxing entities that apply to that particular property.
That last part is important.
There isn’t one universal “Westlake property tax rate” that applies identically to every home someone might describe as being in Westlake.
Depending on the address, a property may be subject to different taxing jurisdictions.
Eanes ISD is one of those taxing entities for properties located within the district.
For the 2025–26 school year, Eanes ISD reports a total tax rate of $0.8322 per $100 of taxable value, consisting of $0.7122 for maintenance and operations and $0.1200 for debt service.
But Eanes ISD is only one part of a property’s total property tax bill.
That’s why we don’t recommend estimating taxes by simply multiplying a home’s asking price by a generic percentage you found online.
When you’re talking about a multimillion-dollar purchase, it makes sense to look at the actual property.
How Much Are Property Taxes on a $2 Million Westlake Home?
This is usually what buyers really want to know.
They want a number they can put into their budget.
The challenge is that we can’t responsibly say:
“A $2 million Westlake home will have a property tax bill of exactly $X.”
The purchase price isn’t automatically the taxable value. Exemptions may apply, and the property’s specific taxing jurisdictions matter.
We can, however, use the Eanes ISD tax rate to demonstrate why these numbers matter.
Imagine three different taxable values:
$2 million
At the current Eanes ISD rate of $0.8322 per $100 of taxable value, the Eanes ISD portion alone would mathematically equal approximately $16,644 per year.
$3 million
Using that same rate, the Eanes ISD portion alone would be approximately $24,966 per year.
$5 million
At $5 million of taxable value, the Eanes ISD portion alone would be approximately $41,610 per year.
Those numbers are for illustration only.
They are not estimates of the property’s complete annual property tax bill.
Other taxing entities may apply, and the property’s actual taxable value and applicable exemptions need to be considered.
That’s exactly why we think buyers should evaluate taxes property by property.
Why the Seller’s Current Property Tax Bill May Not Be Yours
This is one of the most important things to understand when looking at homes in Westlake.
Suppose you’re considering a $3 million property.
You look up the tax history and notice that the current owner’s property tax bill seems surprisingly reasonable.
That’s useful information.
But before building your own budget around that number, there are several questions to ask.
Does the seller currently have a homestead exemption?
How long have they owned the home?
Is there a difference between the property’s market value and appraised value?
Are there additional exemptions involved?
How could the buyer’s situation differ from the seller’s?
Texas provides an appraisal limitation for qualifying residence homesteads. Under current Texas rules, the annual increase in a qualifying residence homestead’s appraised value is generally limited to the lesser of its market value or the previous year’s appraised value plus 10%, plus the market value of qualifying new improvements.
That can create a significant difference between what a longtime owner has experienced and what a new buyer should anticipate.
So when you see the seller’s current property tax bill, treat it as useful information.
Just don’t automatically assume it will be your future bill.
What Is the Texas Homestead Exemption?
If the home will be your principal residence and you meet the eligibility requirements, you may qualify for a residential homestead exemption.
A homestead exemption can reduce the taxable value used by certain taxing entities and therefore reduce the amount of property tax you owe.
Travis Central Appraisal District provides information and applications for homestead exemptions. Other exemptions may also be available for qualifying homeowners, including certain homeowners over age 65, people with disabilities, disabled veterans and qualifying surviving spouses.
There’s another important piece to understand.
For a qualifying residence homestead, Texas law limits how quickly the home’s appraised value can increase from one year to the next.
But this does not mean the market value of your home is only allowed to increase by 10%.
Market value and the capped appraised value used for tax purposes are different concepts.
This distinction can be confusing, particularly for someone buying a Texas home for the first time.
It’s worth understanding before you close rather than discovering it when the next tax bill arrives.
A $3 Million Home Isn’t Just a $3 Million Decision
This is where Albina’s background as a former CPA influences the way our team thinks about real estate.
When buyers tell us:
“Our budget is $3 million.”
We don’t automatically think:
“Great. Let’s find a $3 million house.”
We want to understand what that number means for your life.
There’s the purchase price.
Then there’s financing.
Property taxes.
Homeowners insurance.
Maintenance.
Landscaping.
A pool.
Renovations.
Large home systems.
And the amount of liquidity you want to keep after closing.
Two buyers can have the same income and the same ability to qualify for a $3 million purchase and still make completely different decisions.
One buyer may be comfortable with the ongoing expenses associated with that home.
Another may decide that buying at $2.5 million leaves more room for investments, travel, renovations or simply having more cash available.
Neither decision is automatically better.
The important part is making the decision intentionally.
The goal isn’t to buy the most expensive house you can qualify for.
It’s to buy a home that works with the rest of your financial life.
What About Property Taxes on a $5 Million Westlake Home?
At this level, small assumptions can turn into big numbers.
Imagine underestimating your effective property tax burden by only half a percentage point on $5 million of taxable value.
That difference alone would be $25,000 per year.
Over five years, without even accounting for changes in property values, rates or exemptions, that’s $125,000.
This is why we don’t think property taxes should be something you figure out after you fall in love with the house.
They should be part of the conversation from the beginning.
And the same applies to insurance, maintenance and planned improvements.
A luxury home in Westlake might include:
- A pool and spa
- Extensive landscaping
- Mature trees
- Retaining walls
- Multiple HVAC systems
- Outdoor kitchens and living areas
- Specialty windows
- Custom finishes
- Smart-home technology
- A large or complicated roof
- Drainage systems
- Private gates
- Significant acreage or hillside terrain
All of those features may be part of what makes you love the property.
They can also affect what it costs to own.
So the better question isn’t simply:
“Can we afford to buy this home?”
It’s:
“Can we comfortably own this home?”
Westlake, 78746 and 78733: Don’t Assume the Taxes Are Identical
Another mistake is treating every home marketed as “Westlake” as financially interchangeable.
They aren’t.
West Lake Hills, Rollingwood, Austin addresses within Eanes ISD, 78746 and 78733 can involve different locations and taxing jurisdictions.
Even when two properties are within the same school district and have similar asking prices, you shouldn’t automatically assume their tax situations are identical.
This matters when you’re comparing neighborhoods.
Maybe you’re looking at a $3 million property in 78746 and another around the same price in 78733.
Of course you’ll compare:
Square footage.
Bedrooms.
Lot size.
Condition.
Kitchen.
Pool.
Location.
But we also want you to compare the ownership costs.
The listing price is only one part of the decision.
What If You’re Buying a Westlake Home That Needs Renovation?
This comes up frequently in Westlake.
Some of the most interesting properties aren’t the newest or most polished houses.
They’re older homes on excellent lots with good bones and real potential.
That can create an opportunity for the right buyer.
But renovation needs to be part of the financial conversation from the beginning.
Suppose your plan is:
“We’ll buy the older house for $2.5 million and put $750,000 into it.”
Now we’re not evaluating a $2.5 million decision anymore.
We need to think about the renovation budget.
Contingency.
Temporary housing, if necessary.
Insurance.
Landscaping.
Major systems.
And what the property will cost to maintain when the work is complete.
Certain qualifying new improvements may also affect a property’s appraised value under Texas property tax rules.
This is where Natasha Antonioni’s experience as an interior designer, Realtor and real estate investor adds another perspective to our team.
When we tour a property, we’re not just looking at whether the kitchen is dated.
We’re thinking about what it might actually take to make that home work for you.
A Real-World Scenario: $2.5 Million vs. $3 Million
Imagine you’re comparing two Westlake homes.
The first is priced at $2.5 million.
It has the lot you want, but the kitchen, primary bathroom and outdoor living area need significant work.
The second is $3 million.
It’s already renovated and could work for you immediately.
At first glance, the $2.5 million property looks like the more conservative financial choice.
But is it?
What if the renovation becomes $500,000?
What if you need temporary housing?
What if the landscaping needs substantial work?
What if several major systems are approaching replacement age?
The difference between those two homes can shrink quickly.
But there’s another possibility.
Maybe the $2.5 million property has the superior lot.
Maybe you love the location.
Maybe you’re planning to stay there for 15 years.
Maybe creating the house exactly the way you want it is important to you.
Now the calculation changes again.
There isn’t one correct answer.
That’s why we want to understand the whole property and the whole financial picture, not simply the asking price.
5 Property Tax Mistakes Westlake Buyers Should Avoid
1. Assuming the Seller’s Property Tax Bill Will Be Yours
Use the seller’s tax history as a starting point, not a guarantee.
2. Using a Generic Westlake or Austin Tax Rate
Look at the actual property and the taxing jurisdictions associated with that address.
3. Assuming Purchase Price Equals Taxable Value
The numbers aren’t automatically the same.
4. Ignoring Homestead Rules
If the home will be your principal residence, learn how the homestead exemption and appraisal limitation may apply.
5. Looking at Property Taxes in Isolation
Taxes matter, but so do insurance, maintenance, renovations and your broader financial priorities.
We want to understand all of them together.
How We Evaluate Property Taxes With Westlake Buyers
When we’re helping a buyer evaluate a property, we like to start with the specific house.
Not an internet average.
Not a generic percentage.
The actual property.
We want to understand:
What market value is currently shown by the appraisal district?
What is the current appraised value?
What is the taxable value?
Which taxing entities apply?
What exemptions are currently shown?
What property taxes did the seller pay?
How might the buyer’s situation differ?
Then we can ask a much more useful question:
If you buy this home, what numbers should you be thinking about when planning your ownership costs?
For tax advice specific to your individual situation, you should work with a qualified tax professional.
Our job as your Realtors is to make sure these questions are part of the conversation before the property becomes an emotional decision.
FAQ: Westlake Austin Property Taxes
What is the property tax rate in Eanes ISD?
For the 2025–26 school year, Eanes ISD reports a total tax rate of $0.8322 per $100 of taxable value, consisting of a $0.7122 maintenance and operations rate and a $0.1200 debt-service rate.
Remember that Eanes ISD is only one taxing entity and should not be treated as the property’s complete tax rate.
How much are property taxes on a $2 million home in Westlake Austin?
There isn’t one accurate answer based solely on a $2 million purchase price. The property’s taxable value, applicable taxing jurisdictions and exemptions all matter. The safest approach is to evaluate the specific property’s tax records.
How much are property taxes on a $3 million home in Westlake?
The same principle applies. We wouldn’t recommend simply multiplying $3 million by a generic Westlake property tax percentage. Look at the specific property and its applicable taxing entities.
How much are property taxes on a $5 million Westlake home?
At this price point, even relatively small differences in assumptions can materially affect annual ownership costs. Review the property’s appraisal history, taxable value, taxing jurisdictions and exemptions before establishing your budget.
Does Texas have a homestead exemption?
Yes. Qualifying homeowners who own and occupy the property as their principal residence may be eligible for a residential homestead exemption. Additional exemptions may apply depending on the homeowner’s circumstances.
Does the Texas homestead exemption mean my home’s value can only increase by 10% a year?
Not exactly. Texas law limits annual increases in the appraised value under the qualifying residence-homestead limitation, subject to applicable rules. That doesn’t mean the appraisal district can’t determine a higher market value.
Can I use the seller’s current tax bill to estimate mine?
It’s useful information, but don’t assume your bill will be identical. The seller’s exemptions, length of ownership and appraisal limitation may make their situation different from yours.
Before You Buy in Westlake, Run the Numbers
Buying the house is the exciting part.
Understanding what it costs to own is what helps you feel comfortable with the decision after closing.
If you’re considering a home in Westlake, Cuernavaca, 78746, 78733 or elsewhere in Eanes ISD, look beyond the listing price.
Understand the property taxes.
Understand the insurance.
Understand the condition of the home.
Understand what you may want to change.
And understand how the purchase fits into the rest of your financial life.
That’s especially important when you’re considering a $2 million, $3 million or $5 million home.
We are Albina Rippy, Natasha Antonioni and Holly McCormick with The Council Real Estate Group, serving buyers and sellers in Austin, Westlake, Cuernavaca and Eanes ISD.
Albina brings a former CPA’s financial perspective. Natasha brings experience in interior design and real estate investing. Holly brings a market and negotiation perspective.
Together, we help our clients look at the complete decision.
The Council Real Estate Group
Real Estate Done Intentionally
Buying in Austin? Start With Our FREE Home Buyers Course
If you’re still getting familiar with the Austin home-buying process, we created a FREE Home Buyers Course to help you understand what happens before you start making offers.
It covers important parts of the buying process, including financing, buyer representation, offers, negotiations and inspections.
It’s a simple way to get prepared before the house hunt becomes serious.
Take the FREE Home Buyers Course:
https://buyercourse.thecouncilregroup.com/
Then, when you’re ready to start looking at homes in Westlake, Cuernavaca or Eanes ISD, we’re here to help you evaluate not only what you can buy, but what makes sense for you to own.
Albina Rippy, Natasha Antonioni & Holly McCormick
The Council Real Estate Group
Austin, Texas | Westlake | Cuernavaca | Eanes ISD
713-443-6466
This article is for general informational purposes only and isn’t intended as tax, legal, accounting or financial advice. Property tax rates, values, exemptions and laws can change. Verify information for the specific property and consult the appropriate tax, legal or financial professional regarding your individual circumstances.