Texas Real Estate Math
Practice Questions & Answers (2026)
Real estate math questions appear on every Texas real estate exam and test a focused set of calculations: commission splits, prorations (property tax, rent, interest), loan-to-value ratios, appreciation and depreciation, and area calculations. The Texas Real Estate Commission (TREC) does not provide a calculator — but the math is designed to be workable without one if you know the right formulas. Texas candidates consistently lose points on proration questions because they apply the wrong day-count convention (360-day vs. 365-day year) or miscalculate the seller's vs. buyer's share. Work through every problem in this section until you can solve each type without hesitation.
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Texas Real Estate Math — Practice Questions & Answers
136 questions on Real Estate Math from the Texas real estate question bank. First 10 are free — sign up to unlock all 136.
Q1. A Texas property has a market value of $425,000. The assessed value is 100% of market value. The school district tax rate is $1.10 per $100, the city rate is $0.65 per $100, and the county rate is $0.45 per $100. What is the total annual property tax before any exemptions?
Explanation
Combined tax rate = $1.10 + $0.65 + $0.45 = $2.20 per $100. Tax = ($425,000 ÷ $100) × $2.20 = 4,250 × $2.20 = $9,350.
Q2. A Texas homeowner receives a $100,000 homestead exemption on their $350,000 home. If the combined tax rate is $2.50 per $100, what is the annual tax bill?
Explanation
Taxable value = $350,000 − $100,000 = $250,000. Annual tax = ($250,000 ÷ $100) × $2.50 = 2,500 × $2.50 = $6,250.
Q3. A broker earns a 6% commission on a $390,000 sale and splits the total commission 50/50 with the cooperating broker. The listing agent receives 60% of their broker's half. What does the listing agent earn?
Explanation
Total commission = $390,000 × 0.06 = $23,400. Listing broker's half = $23,400 ÷ 2 = $11,700. Listing agent's share = $11,700 × 0.60 = $7,020.
Q4. A rectangular commercial lot is 200 feet wide and 400 feet deep. It sells for $12 per square foot. What is the total sale price?
Explanation
Area = 200 ft × 400 ft = 80,000 sq ft. Sale price = 80,000 × $12 = $960,000.
Q5. A Texas property has an appraised value of $420,000. The county appraisal district applies an exemption of $25,000 for a homestead exemption. The tax rate is $2.20 per $100 of taxable value. What is the annual property tax?
Explanation
Taxable value = $420,000 − $25,000 = $395,000. Annual tax = ($395,000 ÷ $100) × $2.20 = 3,950 × $2.20 = $8,690.
Q6. A listing agent earns a 3% commission on the sale of a $475,000 home. How much does the agent earn?
Explanation
Commission = $475,000 × 0.03 = $14,250.
Q7. A buyer needs to borrow $240,000. Their lender quotes an annual interest rate of 6%. What is the monthly interest for the first payment (interest-only calculation)?
Explanation
Monthly interest = $240,000 × (0.06 ÷ 12) = $240,000 × 0.005 = $1,200.
Q8. A property in Texas was purchased for $180,000 five years ago and now sells for $225,000. What is the percentage of appreciation?
Explanation
Appreciation = ($225,000 − $180,000) ÷ $180,000 = $45,000 ÷ $180,000 = 0.25 = 25%.
Q9. A Texas commercial building generates gross annual rents of $120,000. The operating expense ratio is 40%. What is the net operating income (NOI)?
Explanation
Operating expenses = $120,000 × 0.40 = $48,000. NOI = $120,000 − $48,000 = $72,000.
Q10. A Texas investor purchases a rental property for $350,000 with a 25% down payment. What is the loan amount?
Explanation
Down payment = $350,000 × 0.25 = $87,500. Loan amount = $350,000 − $87,500 = $262,500.
Q11. A Texas sales agent sold a home for $520,000. The total commission was 6%, split 50/50 between listing and buyer's broker. If the listing agent receives 55% of their broker's portion, how much does the listing agent earn?
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