Moving from Denver to Austin, TX: The Cost of Living Truth
Moving from Denver to Austin, TX: The Cost of Living Truth
Quick Answer: Moving from Denver to Austin, TX lowers your home price and raises your property tax bill. Denver County's effective rate sits near 0.48%. An established South Austin neighborhood runs closer to 1.95%. Whether the move saves you money depends less on Texas tax law than on which town you buy in, and there is a specific household income where it flips in your favor.
By Brandon Holley, Broker/Owner, Holley Homes Realty
If you would rather watch than read, the full video is right above.
Why does moving from Denver to Austin, TX quadruple your property taxes?
Colorado taxes you on roughly 6.7% of your home's market value before the mill levy is applied. Texas taxes you on 100% of it. That difference can take a $660,000 home from about $264 a month in Denver County property tax to roughly $1,073 a month in an established South Austin neighborhood.
That is nearly $10,000 more every year for the same price house. Colorado's flat 4.4% income tax is real, and Texas does not have one, but you need to earn about $220,000 a year for that savings to cover the property tax gap. Above it, you come out ahead on taxes alone. Below it, you pay more per month here than you do in Denver.
What do homes actually cost in Denver versus Central Texas right now?
As of July 2026, the median detached home in the Denver metro sold for about $660,000, pending in 17 days at 99% of asking. That looks tight until you notice almost 63% of Denver closings include seller concessions, median around $10,000. Sellers are holding list prices and quietly paying to close.
Market | Median sold price | Notes |
|---|---|---|
Denver metro | $660,000 | 17 days to pending, 63% of closings with concessions |
South Austin (78748) | $468,000 | Underlying estimated value closer to $454,000, so plan around the mid $400s |
Bastrop | $387,000 | 7.5 months of inventory, a genuine buyer's market |
Buda | $350,000 | Strong new construction inventory |
Kyle | $299,000 | The single strongest value on this list |
The 78748 number jumped 20% in a single month on light volume, so I would not budget around it. Use the mid $400s.
What income do you need for this move to pay off?
This is the part most agents skip. Nobody sells a $660,000 house in Denver to spend $660,000 in Kyle. Once you buy the home you would actually choose, the break-even income drops fast.
If you buy in | At the median | Your break-even household income |
|---|---|---|
South Austin at your Denver price point | $660,000 | $220,000 |
South Austin | $468,000 | $136,000 |
Bastrop | $387,000 | $100,000 |
Buda | $350,000 | $83,000 |
Kyle | $299,000 | $61,000 |
Same buyer, same tax code. The town does the heavy lifting. In Kyle at the median, your property tax runs about $487 a month, which is why the break-even falls all the way to $61,000.
Is Texas homeowners insurance going to wreck the budget?
This is the one place Denver buyers are pleasantly surprised. Colorado homeowners insurance now averages around $4,164 a year and has more than doubled since 2019, largely because of hail claims. On identical $300,000 dwelling coverage, Colorado averages $4,963 a year, compared with $4,085 in Texas.
We get hail here too, so Texas insurance is not cheap. It's roughly $900 a year lower than what you are most likely paying right now.
What is a MUD or PID, and why does it matter before you write an offer?
When builders develop where city infrastructure doesn't exist yet, a special taxing district is created to fund roads, water, and amenities. Those are MUDs and PIDs, and they do not show up in the general estimate a model home hands you.
On that same $468,000 South Austin home, a MUD or PID can push your rate from 1.95% to 2.86%. Your monthly tax bill goes from about $762 to $1,119, and your break-even income jumps from $136,000 to $233,000. Same house, same price, completely different math.
Before you write an offer in South Austin, Kyle, Buda, or Bastrop, ask for the certified total tax rate on that specific lot. Not the community average. The lot. Verify through the Travis Central Appraisal District or Hays Central Appraisal District, and the Texas Comptroller explains how these districts work.
Which Central Texas town fits you best?
Above $220,000 in household income, the math works no matter what you buy. Go shop the house you actually want.
Between $100,000 and $220,000, which is most of the people I talk to, South Austin works as long as you buy at or below the median. Do not stretch to your Denver price point just because it is the house you think you are supposed to have. Under $100,000, look hard at Kyle and Buda.
At $300,000 to $350,000, you get solid new construction in places like Turners Crossing in Buda, right off the SH 45 toll road. At $400,000 to $500,000, where most Denver sellers land, South Austin opens up with mature trees and no HOA. For the closest thing to Colorado, meaning trees, terrain, and a lot that is not a parking space, go west of I-35 to Six Creeks in Kyle or Persimmon in Buda, and expect to pay for it in both price and tax rate. For land and a 40 to 45 minute drive downtown, Bastrop has negotiating room I do not have anywhere else I sell.
If you would like to see a related video on this topic, the one above is a great next watch.
Who this fits best: Denver, Boulder, and Fort Collins sellers with real equity and the flexibility to buy in the town the math actually supports.
Who should look elsewhere: If you need 10,000 feet of elevation every Saturday, this is not your move. The Barton Creek Greenbelt is great, but it is not the Front Range, and I will not pretend otherwise.
What I have learned running these numbers for real clients
I worked with a couple relocating from Idaho. Similar Mountain West background, low property taxes, a tight timeline, and a short list of new-construction homes that looked identical on paper. We built the real monthly payment for each one, factoring in builder incentives, rate buydowns, and the certified tax rate on that lot. The lowest sticker price didn't turn out to be the lowest monthly payment. Not even close.
Two more things I tell every Colorado buyer. Never tour a model home without your own agent, and never accept the tax rate that model home quotes you. And if you are landing without a job tied to a side of town, rent for six months. That costs me a commission, and I say it anyway, because the difference between east and west of I-35 is real.
One last piece of context. Estimated values across these areas are down 3.9% to 5.7% over the last 12 months. People read that as a problem. As a buyer, that correction is your leverage in a Denver-to-Austin, TX move. You are leaving a market where sellers hold the cards and landing in one where you have room to negotiate.
- New Construction in Central Texas - https://holleyhomesrealty.com/new-construction-central-texas
- Buyer's Guide Central Texas - https://holleyhomesrealty.com/buying-a-home-central-texas
- Central Texas Relocation Guide - https://holleyhomesrealty.com/moving-to-central-texas
Frequently Asked Questions
Is moving from Denver to Austin, TX actually cheaper?
It depends on where you buy and what you earn. Home prices are dramatically lower, a $660,000 Denver median against $299,000 in Kyle. Property taxes are roughly four times higher. Above about $220,000 in household income, the no-income-tax advantage covers the gap. Below that, the town you choose decides it.
How much are property taxes in South Austin compared to Denver?
Denver County's effective rate is around 0.48%, one of the lowest in the country. An established South Austin neighborhood outside a special taxing district runs about 1.95%. On a $660,000 home, that is roughly $264 a month in Denver against about $1,073 a month here, or nearly $10,000 more per year.
What is the cheapest Austin suburb for Denver buyers?
Kyle, without much debate. At a $299,000 median, property taxes run about $487 a month, and your break-even household income drops to roughly $61,000. Buda follows at a $350,000 median with an $83,000 break-even. Both sit south of Austin along I-35, with strong new-construction inventory.
Should I worry about MUD and PID taxes on new construction?
Verify them; don't fear them. A MUD or PID can push your effective rate from 1.95% to 2.86%, adding around $357 a month on a $468,000 home. Always request the certified total tax rate for the specific lot before writing an offer, rather than the community estimate a builder provides.
Is homeowners insurance more expensive in Texas than Colorado?
No, and this surprises most people. On identical $300,000 dwelling coverage, Colorado averages about $4,963 a year while Texas averages about $4,085. That is roughly $900 a year cheaper. Colorado premiums have more than doubled since 2019, driven largely by hail claims.
About the Author
Brandon Holley is the Broker and Owner of Holley Homes Realty in Austin, Texas. He works with first-time homebuyers, new construction clients, and relocation buyers moving to Central Texas from across the country. Brandon hosts a recurring segment on American Dream TV and runs the YouTube channel Your Austin Home Guide, where he breaks down communities, builders, and neighborhoods across Austin, Buda, Kyle, Bastrop, and the surrounding suburbs.
Have a question or thinking about a move to Central Texas? Reach out anytime.
512.487.9242 | brandon@holleyhomesrealty.com
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