Study finds Conroe, Pearland homeowners pay steep share of income in taxes

A recent national study reveals that, despite Texas's reputation for high property taxes, certain suburbs in the Houston area are experiencing particularly significant financial strains. Homeowners in Conroe, Pearland, and The Woodlands are among those facing some of the highest effective property tax rates in the nation.

According to a SmartAsset study released on December 4, Conroe, located north of Houston in Montgomery County, ranks 16th nationally for the median property tax burden relative to median household income. A personal finance website compared median annual property taxes to median household income for homeowners across 343 U.S. cities, each with a population exceeding 100,000.

As per SmartAsset, households in Conroe with a mortgage report a median income of $114,220 and a median annual property tax payment of $5,866. The property tax burden stands at 5.1% of revenue, making Conroe one of the most heavily taxed communities in the country by this measure.

Pearland, located just south of Houston, is not far behind. The city ranks No. 21 nationally, with homeowners responsible for a median annual property tax of $8,251, juxtaposed with a median household income of $166,351 for mortgage holders. SmartAsset found that this results in a property tax burden of 5.0%.

The Woodlands distinguishes itself, albeit for a contrasting reason. The township in Montgomery County holds the top position in Texas and ranks seventh nationally for median annual property taxes, at $8,734. Nonetheless, increased household incomes mitigate some of that effect. The Woodlands boasts a median income for mortgage holders exceeding $200,000, resulting in a property tax burden of 4.4% of revenue, placing it at No. The Woodlands ranks 70th in the national rankings.

Houston ranks lower on the list. The city ranks No. 101 overall, with a median property tax burden of 4.1% of household income.

Across the nation, cities in New Jersey and Connecticut lead the rankings. In Paterson, New Jersey, residents face the steepest burden, with the median homeowner allocating nearly 10% of their household income to property taxes, amounting to approximately $9,779 each year. On the opposite side, Montgomery, Alabama, boasts the lowest tax burden, featuring median property taxes of $917, which equates to approximately 1% of income.

Local governments primarily determine property taxes, shedding light on the significant disparities observed across Texas. The state has opted not to impose an income tax, instead depending significantly on property taxes to support local services. 

A March 2025 analysis by the Tax Foundation shows Texas ranks 7th in the nation for effective property tax rates.

The Tax Foundation pointed out that certain states, such as New Hampshire and Texas, rely heavily on property taxes rather than other major tax categories.

In Texas, the rapid expansion of suburbs often leads to higher taxes as these communities invest in infrastructure and public services. 

Jaclyn DeJohn of SmartAsset says that when choosing a home, buyers must take those costs into account. “These taxes contribute to local infrastructure and amenities, assigning a monetary value to the local lifestyle. However, not every household may benefit from these services equally,” DeJohn stated.