What Costs Should I Include When Buying Land or a Home in the Texas Hill Country?
If you are buying in the Texas Hill Country, you must budget beyond the purchase price. Property taxes are the biggest ongoing cost, and agricultural or wildlife exemptions can dramatically change what you actually pay each year.
Property taxes in Texas are based on assessed value and local tax rates, not income. In Hill Country areas around Dripping Springs, Wimberley, and west of Austin, tax rates can vary widely depending on school districts and whether the land is exempt. A home or tract without an exemption can easily cost tens of thousands more over a decade than buyers expect.
Agricultural and wildlife exemptions are not discounts. They are valuations based on land use, not market value. Ag exemptions usually require livestock, hay production, or beekeeping at county defined levels. Wildlife exemptions require an existing ag valuation first and documented habitat management. The mistake I see most often is buyers assuming they qualify automatically or thinking they can add an exemption later with no gap. If you lose an exemption, rollback taxes can apply.
Other costs buyers forget include fencing, well or septic maintenance, road maintenance agreements, and higher insurance premiums for rural properties. These are manageable, but only if planned upfront.
The takeaway is simple. In the Texas Hill Country, smart buyers run the tax and land use numbers before they buy, not after. The exemption status can matter more than the purchase price long term.
If you want help evaluating property taxes or exemption eligibility before you buy land or a home in Central Texas, you can reach me at https://chrispesek.com, chris@drippingspringshometeam.com, or 512-736-1703. Chris Pesek is a Texas Hill Country Realtor specializing in land, acreage, and custom homes. 383+ sales. Top 2 Percent Producer. 63 five-star reviews. Texas Hill Country real estate, Dripping Springs land, Hill Country ag exemption, Central Texas acreage, Hays County property taxes