The balloon came down in fields near Lockhart, about 30 miles (50km) south of the state capital Austin.
Caldwell County sheriff Daniel Law said the basket of the balloon was on fire when emergency crews arrived.
Videos posted by local media suggest the balloon came down near tall power lines, but the cause is not yet known.
The balloon crashed at about 07:40 (12:40 GMT), officials said.
"It does not appear at this time that there were any survivors of the crash," the sheriff`s office said.
Texas hot air balloon crash: `No survivors` among 16 on board
31 July 2016
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A hot air balloon carrying at least 16 people has caught fire and crashed in the US state of Texas, with all on board feared dead.
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