Are the tax benefits of Texas offset by Austin's rising home prices, and the proportional increase owed in property taxes?
Even though Austin's property values are lower than California, the percentage is much higher (California is approximately 0.7%). This is a large annual burden, especially since property values are re-appraised annually, so as property values keep going up, your taxes go up as well.
There is no state or local income tax though, so high income earners save on that.
Taxes go up because government spending per taxpayer goes up. I have some properties where the values go up and property tax rates to go down, resulting in declining property tax paid. But it’s rare, and doesn’t last for too long.