The Real Cost of Living on Lake LBJ

The County Tax Differential — The Biggest Number Nobody Quotes

The Burnet-Llano county line runs roughly down the center of the Colorado River arm of Lake LBJ. Every lakefront property on the water sits in one county or the other, and the tax difference is material. Burnet County's total effective property tax rate for lake-area properties runs approximately 1.04% of appraised value. Llano County's effective rate runs approximately 0.75%. On a $1.5 million lake home — a representative price point for waterfront on Lake LBJ — that 0.29 percentage point difference produces an annual tax bill gap of approximately $4,350. Over a ten-year ownership period, that is $43,500 in cumulative tax payments depending on which side of the county line your property sits on.

Horseshoe Bay is almost entirely in Llano County, which is one reason it carries such strong long-term value. Kingsland straddles the county line — the Colorado River forms the boundary, so properties on the north bank are in Burnet County and properties on the south bank are in Llano County. This is not always clear from listing descriptions or even from asking agents. Verify the county on the Burnet CAD or Llano CAD websites using the property address before you make an offer.

Texas has no state income tax and no estate or inheritance tax. Property tax is the primary recurring government cost of lake homeownership here, and the Lake LBJ market spans two very different county rate structures on the same body of water.

Property Tax by Price Point

Using Llano County at 0.75% effective and Burnet County at 1.04% effective:

• $750,000 home — Llano: ~$5,625/yr; Burnet: ~$7,800/yr (difference: ~$2,175/yr)
• $1,000,000 home — Llano: ~$7,500/yr; Burnet: ~$10,400/yr (difference: ~$2,900/yr)
• $1,500,000 home — Llano: ~$11,250/yr; Burnet: ~$15,600/yr (difference: ~$4,350/yr)
• $2,500,000 home — Llano: ~$18,750/yr; Burnet: ~$26,000/yr (difference: ~$7,250/yr)

These are effective rates after typical exemptions. Non-homestead (second home or investment property) rates will be higher because the homestead exemption — which applies only to a primary residence — does not reduce your assessed value. If Lake LBJ is a second home, budget at closer to the full statutory rate, which can push combined rates to 1.2% in Burnet County and 0.9% in Llano County depending on specific taxing districts.

LCRA Shoreline and Dock Costs

The Lower Colorado River Authority manages every dock, boathouse, boat lift, and bulkhead on Lake LBJ through its Shoreline Management Program. A current LCRA permit is required for every structure. When you buy a property with existing dock structures, you are buying the physical structures — the permit is in the seller's name and must be transferred through LCRA as part of the closing process.

LCRA charges annual permit fees for residential dock structures, though exact fee amounts are subject to revision. More significant is the cost of bringing non-compliant structures into compliance. A boathouse or covered dock that was permitted under older standards may require modification to meet current program requirements. An uncovered dock with a lift that was added without a permit amendment becomes the buyer's problem after closing. Budget a structural inspection of all dock and shoreline structures by a contractor familiar with LCRA compliance as part of your due diligence.

Hydrilla, a non-native aquatic plant LCRA is actively treating on Lake LBJ, occasionally triggers temporary access restrictions to areas where chemical treatment is active. This is not a chronic disruption, but it is worth understanding as a feature of lake management on this water body.

HOA and Community Assessments

Horseshoe Bay Resort operates as a private master-planned community with its own set of fees layered on top of property taxes. Homeowners in Horseshoe Bay pay POA dues, which fund road maintenance, lake access, landscaping, and security. The amounts vary by property type and location within the community, but annual assessments in the range of $2,000 to $6,000 are typical for lakefront properties in Horseshoe Bay. Resort amenities — golf courses, marina access, fitness facilities — carry their own membership structures separate from the POA assessment.

Properties in Granite Shoals, Kingsland, Highland Haven, and Sunrise Beach may or may not carry HOA fees depending on the specific subdivision. Some sections have no organized HOA at all. Others have voluntary lake improvement associations with modest annual dues. Confirm the specific assessment structure for any property, including all attached fees, before calculating your carrying costs.

Summit Rock in Horseshoe Bay carries an additional capital improvement assessment — approximately $42,000 per lot at the time of sale, payable in a lump sum or through installments of $2,800 per year for 15 years billed through the county tax system. Buyers in Summit Rock need to understand this assessment exists and how it affects their total acquisition cost and annual carrying obligation.

Insurance: Waterfront Specifics

Homeowners insurance on Lake LBJ lakefront runs higher than comparable inland construction due to the waterfront location, elevated replacement cost, and wind/hail exposure in the Texas Hill Country. A $1.5 million home with $1.2 million in replacement cost coverage might run $6,000 to $12,000 per year depending on construction type, age, deductibles, and carrier. Hill Country properties with metal roofs typically fare better on windstorm riders than those with composition shingles.

Flood insurance is worth careful evaluation even on a near-constant-level lake. Lake LBJ's pass-through design means it can rise rapidly during major upstream events. FEMA Flood Insurance Rate Maps show the flood zone designation for individual properties — verify at msc.fema.gov before closing. Properties in Zone AE require flood insurance on federally backed mortgages and face higher exposure even at near-constant pool. The premium for NFIP flood insurance in Zone AE on a lakefront structure runs $1,500 to $3,000 per year.

Dock insurance (a separate inland marine or dock floater policy) runs $400 to $900 per year for a covered boathouse with a lift. Homeowners policies routinely exclude dock structures — do not assume coverage without reading the other structures section and exclusions explicitly.

Utility Costs in the Hill Country

Natural gas infrastructure reaches parts of Marble Falls and Kingsland but is not universal across the Lake LBJ shoreline. Many lake properties use propane for heating, cooking, and water heating. Propane in the Hill Country runs $2.20 to $2.80 per gallon with seasonal variation; a moderately sized lake home can consume $2,000 to $4,000 per year in propane depending on usage and home efficiency.

Electric service comes from Pedernales Electric Cooperative for most Lake LBJ area properties, with some areas served by other cooperatives. Summer cooling loads in central Texas are significant — July and August air conditioning bills on a 3,000 square foot lake home can run $300 to $500 per month. Insulation quality and window efficiency in older Hill Country construction are worth evaluating carefully.

Water service varies: incorporated areas like Horseshoe Bay, Granite Shoals, and Marble Falls have municipal water. Rural lake-area properties outside city limits may use private wells requiring their own maintenance budget.

Full Annual Cost Summary

For a $1.5 million waterfront home in Llano County (Horseshoe Bay area):

• Property tax (Llano County, ~0.75%): approximately $11,250
• HOA/POA assessment (Horseshoe Bay): $2,000 to $6,000
• Homeowners insurance: $7,000 to $12,000
• Flood insurance (Zone AE, if applicable): $0 to $3,000
• Dock/boathouse insurance (floater): $400 to $900
• LCRA permit fees: $200 to $600
• Utilities (propane + electric): $4,000 to $8,000
• Dock and shoreline maintenance (amortized): $800 to $2,000

Total annual carrying costs beyond mortgage: approximately $25,000 to $44,000 depending on HOA tier, flood zone, and utility usage. The property tax line on the Llano County side of the lake is genuinely competitive for a Texas waterfront property at this price point — the discipline is tracking every other line item, especially HOA layers, which are often understated in listing descriptions.