Texas consistently ranks as one of the nation’s most favorable business climates based, in large part, on its low tax burden. Texas features no personal or corporate income tax, and overall the state has one of the lowest state and local tax burdens in the nation, ranking 45th among the 50 states in taxes paid per $1000 of personal income.

Over the last three years, the Texas legislature has revamped the state's tax system with regard to funding public schools. As a result, Austin homeowners will see a one-third cut in property tax rates. Property tax exemptions are also something to keep in mind; most jurisdictions offer at least one, and usually several, exemptions worth investigating. Savvy real estate investors should understand the possibilities when searching for property since these exemptions can make a difference and help cut your tax bill.