Taxes & Insurance in Waco
Texas's no-state-income-tax, property-tax-carries-the-load structure applies fully in Waco -- and Waco's own effective property tax rate (2.09%) runs above both the McLennan County median (1.89%) and the national median (1.02%). Homeowners insurance cost estimates vary widely by source and coverage assumptions.
Exploring the idea of moving?
We can connect you with a local real estate professional who knows the area -- no pressure, just a starting point.
Learn moreNo state income tax, real and above-national property tax load
Texas levies no state personal income tax, applying uniformly in Waco. Ownwell's aggregation of actual property records puts Waco's median effective property tax rate at 2.09% (median tax bill $3,563) -- above the McLennan County-wide median of 1.89% (average bill $3,358) -- with real variation by zip code, from $2,193 in 76704 to $6,078 in 76712, driven by differing school-district levies and local assessment districts. Separately, McLennan County's own nominal county-only levy (not the combined effective rate) was $0.334805 per $100 of value for 2025, with a proposed 2026 increase negotiated down to roughly $0.3798 per $100 after a public hearing.
No coastal windstorm-pool requirement -- Central Texas hail/severe-thunderstorm risk drives premiums instead
Unlike Gulf Coast Texas markets (e.g., Corpus Christi, covered elsewhere in this dataset, which carries mandatory Texas Windstorm Insurance Association coverage), Waco is well inland and carries no coastal windstorm-pool insurance requirement. Standard homeowners insurance premium estimates vary widely across sources -- from $2,131/year on the low end to $4,008/year for $300,000 coverage with a $1,000 deductible, to $5,148/year for $250,000 dwelling coverage in a third source -- all pointing to Central Texas hail and severe-thunderstorm risk, not hurricane risk, as the underlying cost driver. Get an address-specific quote rather than relying on any single cited figure.
Key takeaways
- Texas's no state income tax applies fully in Waco; property tax carries more of the funding load in its place.
- Waco's median effective property tax rate is 2.09% (Ownwell), above the McLennan County median of 1.89% and well above the 1.02% national median -- rates vary widely by zip code within the city.
- Waco carries no TWIA-style coastal windstorm-insurance requirement (unlike Gulf Coast Texas markets) -- standard homeowners insurance here reflects Central Texas hail/severe-thunderstorm risk instead.
- Homeowners insurance estimates range widely across sources ($2,131-$5,148/year) depending on coverage limits and deductible -- get an address-specific quote.
Want to know what your budget actually buys here?
Tell us a bit about what you're looking for and we'll connect you with someone local who can walk you through real numbers.
Get local guidanceRead the full Waco overview for the complete picture -- housing, taxes, climate, and who this place genuinely fits.
Planning a move?
Tell us what you're looking for and we'll connect you with a local expert who can help you make it happen.
Talk to a local expert