San Antonio Texas Tax Guide 2026: Zero Income Tax, JBSA Military Benefits & Bexar County Property Tax

San Antonio is Texas's second-largest city and the home of Joint Base San Antonio (JBSA) — the largest military installation in the world, housing over 250,000 active duty, reserve, retirees, and civilian employees. USAA, the financial services giant serving military families, is headquartered in San Antonio with approximately 20,000 local employees. For tax purposes, San Antonio follows Texas's foundational advantage: zero state income tax. The key local tax variable is property tax — and Bexar County's combined rates are not lower than Travis County's, but lower home prices make San Antonio an appealing alternative for Austin-area buyers priced out of the capital's real estate market.

San Antonio vs Austin: The Tax Case for Buying in Bexar County

San Antonio vs Austin is the dominant homebuying comparison for the central Texas corridor. On a given home value, combined 2025 rates per $100 of taxable value are about $2.27 in San Antonio (Northside ISD) versus roughly $2.06 in Austin, so the San Antonio advantage comes from lower home prices rather than lower rates.

But the real comparison is purchasing power. In 2026, $500,000 buys a substantial 3-4 bedroom home in San Antonio's better neighbourhoods. In Austin, $500,000 is a starter home or small condo. Families relocating from California or the Northeast can buy significantly more house for the same mortgage in San Antonio, stacking real estate savings on top of property tax and income tax advantages.

For JBSA military families: the BAH (Basic Allowance for Housing) for San Antonio is calibrated to local housing costs — historically lower than Austin BAH, but the housing cost gap more than compensates when purchasing.