Navigating University Park Texas Property Taxes for Luxury Homes: What Out-of-State Buyers Need to Know

If you’re an out-of-state luxury home buyer considering a move to University Park, Texas, understanding the local property tax landscape is essential. While Texas has no state income tax, property taxes in upscale areas like University Park can be substantial—but they come with advantages worth noting.

University Park falls within Dallas County, and property taxes fund some of the best schools and public services in the state. For buyers coming from California, New York, or Illinois, the shift in tax structure can be a financial adjustment—but often a positive one.

What You’ll Pay in University Park

• Average effective property tax rate in Dallas County: ~2.21%

• University Park home values for luxury properties often range from $2M–$5M

• This means a $3M home would have an estimated annual tax bill of ~$66,000

• However, savings from 0% state income tax often offset this expense

How Texas Property Taxes Are Calculated

Texas uses a market-based appraisal system to determine home values annually. Each taxing authority (such as the city, county, and school district) applies a rate, which results in your total tax bill. In University Park, these services include:

• Highland Park ISD

• City of University Park

• Dallas County

• Parkland Hospital District

Tax Exemptions You May Qualify For

• Homestead Exemption: Available if the home is your primary residence, providing partial tax relief

• Over-65 Exemption: Offers additional reductions in taxable value

• Disabled Veteran Exemption: Varies by disability rating

Comparison: University Park vs. Other States

Location	Avg. Property Tax	State Income Tax	Total Tax Burden (High-Income Buyers)
University Park, TX	2.21%	0%	Moderate
San Jose, CA	0.76%	13.3%	Very High
Westchester, NY	2.24%	10.9%	Extremely High
Miami-Dade, FL	0.83%	0%	Moderate

Tips for Managing Your Property Taxes

• Work with a REALTOR® who understands local tax rates and exemptions

• File for exemptions early in the tax year

• Review your annual property appraisal for errors

• Consider long-term tax impact when choosing your home’s location within the Dallas area

“Property taxes in University Park may seem high at first glance, but for wealthy buyers coming from income-taxed states, Texas often offers a more favorable net tax position.”

Nitin Gupta, CRS, GRI, REALTOR, specializes in helping luxury buyers relocate from high-tax states and offers guidance on all aspects of homeownership—including navigating property taxes effectively.

Explore Nitin's real estate certifications here: https://www.nitinguptadfw.com/dallas-realtor-designations

Schedule a tax consultation and home tour today: https://www.nitinguptadfw.com/contact

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FIND A LUXURY HOME IN UNIVERSITY PARK, TEXAS WITH NITIN GUPTA, BROKER ASSOCIATE, REALTOR®.

When purchasing a luxury home in University Park, Texas, it’s essential to consider factors such as location, architectural style, security, and amenities to ensure the home meets both lifestyle and investment needs. By selecting a property in a prestigious neighborhood with numerous amenities and security measures, buyers can ensure they’re making a valuable and rewarding investment in the vibrant University Park market.

For those looking to invest in luxury homes in University Park, Texas, Nitin Gupta is an expert real estate professional ready to assist. Known for his extensive experience, market insights, and numerous awards, he is committed to finding his clients the best properties in the area.

Contact Nitin Gupta at 469-269-6541 or send a message today to explore exclusive listings and secure your ideal luxury residence in one of University Park’s elite communities.