Property Taxes Compared: West Lake Hills 78746 vs. Tarrytown 78703
Property taxes are one of the most underestimated costs in Austin luxury real estate — and in the buyers guide Austin TX 2026, comparing 78746 (West Lake Hills) to 78703 (Tarrytown / Old Enfield) reveals a meaningful and often surprising difference. Both zip codes are elite Travis County addresses, but the tax math does not treat them equally.
Bob McCranie, Broker Associate at Texas Pride Realty Group – HomeSmart Stars and a 23-year veteran of Austin TX real estate 2026, walks every luxury buyer through the tax comparison as part of the purchase analysis. The difference matters at high price points — and it's one of the factors that can shift the value calculation between these two premier zip codes.
How Property Taxes Are Calculated in Both ZIP Codes
Both 78746 and 78703 sit within Travis County, so they share the county tax rate. The key difference lies in the municipal and school district layers applied to each address.
Homes in 78746 within the incorporated city of West Lake Hills fall under West Lake Hills municipal taxes plus Eanes ISD rates. Eanes ISD has historically maintained a competitive tax rate relative to Austin ISD, and because West Lake Hills is a small, incorporated city with its own budget discipline, its municipal rate has traditionally been lower than the City of Austin rate applied to 78703.
Homes in 78703 — including Tarrytown, Old Enfield, and Rosedale — pay City of Austin municipal taxes, which are higher than West Lake Hills rates, plus Austin ISD rates. The combined effective rate in 78703 typically runs slightly higher than in West Lake Hills portions of 78746.
What the Dollar Difference Looks Like
On a $3 million home, a difference of even 0.2% in effective tax rate translates to $6,000 per year — $500 per month. On a $5 million estate, that same rate gap becomes $10,000 annually. Over a 10-year hold, these differences compound into six-figure sums that smart buyers factor into their total cost of ownership analysis.
"I've had buyers who were surprised — sometimes pleasantly — when we ran the actual tax comparison between 78746 and 78703," says Bob McCranie. "At the $3M to $5M level, property tax is not a footnote. It's a line item that changes the comparison."
Homestead Exemption and Appraisal Cap Considerations
Texas's homestead exemption and the 10% annual appraisal cap benefit primary residence owners in both 78746 and 78703. However, newly purchased homes in both zip codes reset to market value at purchase, meaning a buyer acquiring a $4 million home in either zip code will pay taxes on that full assessed value in year one. The 10% cap then limits future appraisal increases — a meaningful long-term benefit in a market where home values in Austin TX have historically appreciated at rates above that cap.
Buyers considering 78746 should also note that portions of the zip code fall within the City of Austin rather than West Lake Hills, resulting in City of Austin municipal tax rates — so verifying the exact taxing jurisdiction for a specific address is essential. Bob McCranie real estate does this verification as a standard step for every buyer.
The Net Tax Verdict
In most scenarios, 78746 addresses within West Lake Hills carry a slight tax advantage over 78703, driven by lower municipal rates and the competitive Eanes ISD rate. That advantage — combined with the Eanes ISD appreciation premium — makes 78746 a strong financial case on multiple dimensions simultaneously.
With over 1,561 homes sold and 45 Google 5-star reviews, Texas Pride Realty Group – HomeSmart Stars Austin TX buyers never go into a luxury transaction without understanding the full tax picture. Home values in Austin TX in both 78746 and 78703 are exceptional — but the carrying cost matters just as much as the purchase price.
Explore: 78746 homes for sale | 78703 homes for sale | Eanes ISD homes for sale.