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Spinoff Housing: Property Taxes


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[Edited] About $7,500.

[And no, I don't live in a fancy house or neighborhood.  Our house cost $150,000 when we bought it 25 years ago.  We have built out above the garage, but that is the only "improvement."]

Edited by SKL
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$1343, although it will go up just a bit this year due to a county wide revaluation.

ETA: I think our property tax rate is somewhere around .6 percent.

Edited by Pawz4me
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Property tax rates are high in Texas; people compare the cost of housing in Texas with other parts of the country, but one thing that has dampened home prices in Texas is the tax rate.   We were just living in a rental and paying $2500 per month; the homeowners taxes were $12,500--42% of the rent he was charging.

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2 minutes ago, Bootsie said:

Property tax rates are high in Texas; people compare the cost of housing in Texas with other parts of the country, but one thing that has dampened home prices in Texas is the tax rate.   We were just living in a rental and paying $2500 per month; the homeowners taxes were $12,500--42% of the rent he was charging.

Yep. For a hot minute DH was lobbying to retire there. Nope. For that same mortgage, you’d pay less than $2500/yr in taxes where we live now and just about $1600 where our rental is.

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County property tax rate is 1% 
We pay about $6k for our condo that we bought for $400k in 2006. We paid much less when property value went down during the Great Recession.

Proposition 13 (1978) limits the property tax rate to one percent of the property’s assessed value plus the rate necessary to fund local voter-approved debt. It also limits increases on assessed values to two percent per year on properties with no change of ownership or no new construction.”

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18 minutes ago, Bootsie said:

Property tax rates are high in Texas; people compare the cost of housing in Texas with other parts of the country, but one thing that has dampened home prices in Texas is the tax rate.   We were just living in a rental and paying $2500 per month; the homeowners taxes were $12,500--42% of the rent he was charging.

Compared to the property taxes I'm seeing quoted here, I'm happy ours are so low.  A relative in IL pays a LOT more property tax on their smaller house/less property.  Ours (in TX) are roughly 1.5% of the value of the house. We do pay $200/year for our HOA fees - which is very reasonable. I've seen up to $2400/year. 

 

Edited by Bambam
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Our old house was around $1,500 a year.  Our new house is around $4,200 per year.  We now live in the highest property tax area in our county, I think due to the diking district and much of this area is in a flood zone.

Edited by Loowit
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49 minutes ago, Bootsie said:

Property tax rates are high in Texas; people compare the cost of housing in Texas with other parts of the country, but one thing that has dampened home prices in Texas is the tax rate.   We were just living in a rental and paying $2500 per month; the homeowners taxes were $12,500--42% of the rent he was charging.

But isn't this because there is no state income tax in Texas? The better measure is a comparison by state of average taxes paid. I think I remember seeing something like that once. Where does Texas compare to other states with income taxes? 

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My *actual property tax is under $1,000. With school tax, it was around $3600, but recently went down. I don’t know the exact breakdown off hand. 
 

ETA: We’re looking at houses that are closer to $6k all-in. My current house is small.

Edited by Carrie12345
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it's going to really vary according to the housing market where a person is.  More revealing would be % of value.   even then . . . 

 

Dh has fought our property taxes for a long time - one year we got such a big reduction the county appealed to the state.    Know what houses you assessor is comparing your house to . . . some of them . . . . not. even. close.

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56 minutes ago, Ordinary Shoes said:

But isn't this because there is no state income tax in Texas? The better measure is a comparison by state of average taxes paid. I think I remember seeing something like that once. Where does Texas compare to other states with income taxes? 

You are correct, we do not have an income tax in Texas.  So, if I wanted to compare average taxes paid, I would have to compare all of the taxes paid in a state.  Depending upon how one is taxed, however, it does distort choices and the real estate market.  For example, I have a cousin who inherited some money to use to purchase a house but chose a career that was low-paying.  Even though he could afford a house in Texas, he would not be able to afford the property taxes on his income.  In another state with low property taxes and an income tax, his income is so low that his state income tax is almost zero and his property tax is low.  Someone who has a high income might prefer the tax structure in Texas.  So, the "average" taxes paid can really hide some differences for individual people.  --I don't know the specifics but I have friends who live in Maine and their children live in New Hampshire because of the differences in the way that people are taxed in those two states.

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We pay around $1700/ year.

We do have state income tax but even if I add that (total state tax plus property tax is around $8000/year) it’s still less than some here.

When we lived in FL, with no state income tax, our property taxes were only around $1000/year. That house was about half the size of our current house.

Edited by Joker2
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So ours is 5,500.  But as people have mentioned that’s it. We don’t pay income tax. We don’t pay a separate school tax. That is included. Seems very reasonable to me.  When we lived in a state with income tax, we paid a heck of a lot more than 5,000 in state income tax.

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23 minutes ago, Dreamergal said:

Around $9k. . 

It is the only house we have owned, we were advised to buy in the best school district we can afford. So we bought the "smallest" house in that. This is TX though so small is still a tad less than 3000 sq ft.

Our lot size is a little over 5000 sq ft.

We protest it every year.

We also pay almost $900 for HOA. Thought I will throw that in because ugh...I have a love/hate with the HOA.

Wow. I live on 50 acres and have a 3500 square foot house and pay only 5500.

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56 minutes ago, Dreamergal said:

You have a few longhorns ? That is what some people do on empty lots in my city. When we bought it was semi-rural. Now it is rapidly urbanizing. Perhaps grow certain trees ? I am not sure how that works but heard something about some exemptions based on certain trees and plants and animals

Yes we have a farm exemption, but that only affects rhe land not the house and the acre surrounding it.  We get no discount on that parcel. 

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11 minutes ago, Dreamergal said:

We pay for the school district. Don't remember the break down. That is DH's department. He is the one that fights the house taxes most years.

We actually pay for 2 school districts and a community college because of where we live.  LOL.

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15 minutes ago, Bootsie said:

2021’s Property Taxes by State (wallethub.com)

This site has an average tax rate, average home value, and average amount of property taxes paid in each state.  Of course, individual locations can vary quite a bit within a state

 

Misread the chart at first and was surprised that VT was 47th because I had always heard we have high taxes. Then I realized that 47th was bad not good. Anyway - we pay over $6000 for a 1500 sq foot house. 

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Ours is 1.7%.

Schools are almost .8 of that. 

But we pay a bit less because they subtract a residential credit for homeowners. You are allowed to subtract the tax off the first 20% up to a max of 50k.  Which means you would max out your residential credit on a moderate townhome or cheaper 2 bedroom. I guess this is the cities way of making it a more progressive tax. 

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We now only pay about $1200 per year for our co-op, about 1,000 sq ft. We bought this place because of the low property taxes. Monthly assessments excluding property taxes is about $1,000, though, and most of that goes into the reserves to pay for future building repairs which is okay with me.

Our former home was about 1,000 sq ft on 1/6th acre and taxes are now about $12k.

The home before that was about $22k per year.

All Illinois. Taxes are high here. Some people pay six figures. Crazy.

My BIL recently bought a newly-built, beautiful second home in Laveno, Italy, on Lago Maggiore for about $150k. Property tax is $100 per year. The home is exceptionally well-built compared to American homes and quality of life is very good. We are thinking of doing the same especially since my husband’s father and other relatives are from that area.

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We pay about 6k. Honestly, I feel like that's low. A few years ago, I was like, dh, there's no way we could sell our house for this much, this is nuts. We should contest the property value. I looked up comps to our home that were significantly less. Dh was like, okay, but do you actually think we should pay less than this in actual taxes and do you feel it goes to good things. We didn't end up contesting.

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15 hours ago, Bootsie said:

2021’s Property Taxes by State (wallethub.com)

This site has an average tax rate, average home value, and average amount of property taxes paid in each state.  Of course, individual locations can vary quite a bit within a state

 

Oh look, NJ is #1!  Yippee.  🙄

We actually don't pay that much in taxes in our town and we have very good schools and very few businesses to offset some costs.   Although we also have a really really small house.   There are a fair number of $million homes in our town.

NJ has something like the top 5 wealthiest counties in the country so I'm not completely surprised.   There can be quite a range between the top towns and the bottom. 

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In my county, there is an exemption amount and then you get taxed on whatever the government appraisers value your house at, minus the exemption amount.  So I guess this is a way of making the property tax "progressive."

I live in a county with a big city, and I assume that is why my property taxes are so high.

[We also have city and state income tax and sales tax [plus water and sewer], not to mention the fact that you now can't deduct all of those state/local taxes in computing your federal taxable income ....]

Edited by SKL
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We pay to a few different entities (county, our MUD/Municipal Utility District, school district....not sure what else); all together our total tax rate is 3.5%. 

Our tax appraised value of our home increases roughly 7% to 10% (max it can, due to homestead exemption) each year, so the amount we pay increases accordingly each year. I'm in a county in TX that is notorious for this.  This is the part of the equation that is ugly; the tax assessor reevaluates the values annually, and being in a new development, it will be a while before ours levels out, most likely. I have no idea what it will get up to. 

Our MUD has lowered the tax rate as the neighborhood gets more & more built out, and some of the other taxing entities have lowered theirs to  offset the increased values or to balance it out some.  Also our homestead exemption means that various taxing entities can/do tax on a reduced percent of the value of the home. Nevertheless, the value goes up, our taxes go up. (we have been in the home 7 years, and were around $5K the first years, and about $7K now)

We purposely bought "less" house (well, much lower mortgage, more house, by buying in a more outlying area) in order to remain w/in budget as the taxes keep increasing (taxed value, not tax rate).  We do also protest our value each year; some years I've won that, some years not.  

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Low property taxes in my state, but the trade off is a state income tax and gross receipt tax (sales tax) on things that are not taxed in other states.

I am self employed, so I have to pay gross receipts tax (sales tax) for any services I offer and then I pay state income tax. I am basically taxed twice on my income.

The government gets the money it needs one way or another. At least with property tax the taxpayer has some control over choosing what “property” to purchase. A smaller, cheaper house will result in lower property taxes. I know it is not as simple as I make it sound, but If I choose to work less I will have less income. 

Edited by City Mouse
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