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Spinoff Housing: Property Taxes


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So, this was fascinating. I never thought much about it beyond, ugh, bill to pay.

I was curious so I looked it up...

"Overall, homeowners pay the most property taxes in New Jersey, which has some of the highest effective tax rates in the country. The state’s average effective rate is 2.42% of a home's value, compared to the national average of 1.07%. With an average effective rate of 0.28%, the least expensive state for property taxes is Hawaii, surprisingly."

We pay less than 1%. If we were paying 3.5% or something like some of you are saying, we'd be gentrified out of house. Like, 3.5% is more than I make in a year. Admittedly I don't make a lot of money, but still.

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Florida.  Our rate is 1.65% of assessed value.  We have a homestead exemption which reduces our taxable base by $50,000. The homestead exemption also caps our value increases, I believe, to 3%. We pay around $9,300 - our condo is 1,600 square feet. 

Our property taxes were much lower in Arkansas. I think we paid around $3,000 on a 3,500 sq ft house. However, we paid state income tax there.  When we lived there, the highest marginal state tax rate was 6.9%.  Since we moved away it has been lowered to 5.9%. Nevertheless, we are FAR better off overall from a tax standpoint being here, even though we pay more in property taxes. 

 

Edited by Hoggirl
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We have "homestead exemptions" here, so you pay only a fraction of the normal rate on your main residence, but much higher if it is a vacation home, or you live say, in New York half the year, and South Florida the other half. So, with the exemption, we paid 1,100 last year in property taxes (including schools, etc). We do not have a state or county/city income tax. 

House is 1,500 sq feet, lot is 8,000 sq feet I think. 

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I just realized I was lying!  I double counted!  Actually my house's annual property tax is more like $7,500.  I feel much better!  Sorry for being such a drama queen.

$7,500/year does not cover water/sewer, and is in addition to city and state income tax and sales tax.  So still not cheap.

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5 hours ago, Farrar said:

So, this was fascinating. I never thought much about it beyond, ugh, bill to pay.

I was curious so I looked it up...

"Overall, homeowners pay the most property taxes in New Jersey, which has some of the highest effective tax rates in the country. The state’s average effective rate is 2.42% of a home's value, compared to the national average of 1.07%. With an average effective rate of 0.28%, the least expensive state for property taxes is Hawaii, surprisingly."

We pay less than 1%. If we were paying 3.5% or something like some of you are saying, we'd be gentrified out of house. Like, 3.5% is more than I make in a year. Admittedly I don't make a lot of money, but still.

Hawaii has low property tax rates to keep housing affordable for locals. It also requires on-island property management to discourage investors from becoming absentee owners. All intentional and super important to maintain island culture.

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We pay $2200, for 3600 sq ft on 5 acres, not in an incorporated area, so considered rural. Our taxes just about doubled last year, going from $1200 to $2200, and we suspect will increase again. We protested but were declined. The reasoning is that so many people are moving into our area that they have to increase the taxes to pay for upgraded roads and build new schools. Many businesses moving here that get huge tax breaks but the homeowners are penalized. We live near Nashville, and the influx of people has really destroyed this once nice city! Traffic is awful, and rent!!! My sister prefers to rent because of her situation, but she can't find anything for a 2-bedroom below $1200. She moved here in 2010, and she was paying $525 rent for a 1600 sq ft condo with 3 beds/3 baths. She was priced out of that condo after 10 years when her rent went to $1300 basically overnight. Now, she's going to have to buy if possible to keep her payments stable. It's an untenable situation. We were hoping to sell and move to East Tennessee or rural Kentucky, but family keeps us here.

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In Texas there is a homestead exemption for your home you are living in, but it does not apply the same to all of the different property taxes (county, school district, community college...)  There is also a freeze on valuation for senior citizens on their assessed value.  I do not know if that applies for all taxing entities or not.  So, the average rate isn't necessarily meaningful. 

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1 hour ago, Sneezyone said:

Hawaii has low property tax rates to keep housing affordable for locals. It also requires on-island property management to discourage investors from becoming absentee owners. All intentional and super important to maintain island culture.

I'm guessing that it's also possible because the property values are so high in the first place. Like, we're paying significantly more in dollars than a lot of people have listed here, but it's less than 1% rates. Because the property values are really high.

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4 minutes ago, Farrar said:

I'm guessing that it's also possible because the property values are so high in the first place. Like, we're paying significantly more in dollars than a lot of people have listed here, but it's less than 1% rates. Because the property values are really high.

Yes, housing costs are high. A lot of the households are multigenerational or inherited/passed down too. There are TONS of seniors on fixed incomes too. Unlike Seattle, people are encouraged to remain in place. It's just a known thing that once you leave/sell it's VERY hard to come back/buy in.

Edited by Sneezyone
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We pay $3500 for 2300 sq ft on 0.71 acres.  The tax rate is 1.6%.  I don't feel like it's worth it because we get zero for the money paid. We are out of the city limits and receive no municipal services. Maybe 2 or 3 times in the summer, the county will come out and mow the grass on the side of the road or patch a REALLY big pot hole, but that's it.  The county doesn't even pick up the tab for the street lights. I pay the bill for the light that happens to be on the easement of my property.  

I wouldn't mind the money if I could see some sort of benefit toward the community, but I really don't know what the money gets spent on.  

Edited by MissLemon
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27 minutes ago, MissLemon said:

We pay $3500 for 2300 sq ft on 0.71 acres.  The tax rate is 1.6%.  I don't feel like it's worth it because we get zero for the money paid. We are out of the city limits and receive no municipal services. Maybe 2 or 3 times in the summer, the county will come out and mow the grass on the side of the road or patch a REALLY big pot hole, but that's it.  The county doesn't even pick up the tab for the street lights. I pay the bill for the light that happens to be on the easement of my property.  

I wouldn't mind the money if I could see some sort of benefit toward the community, but I really don't know what the money gets spent on.  

I pay $5K for the same size house on a smaller lot, but the tax rate is actually lower, and I feel like I do get a lot for the money. In addition to good schools, we have a huge library system with lots of programming, lots of summer events in the park, excellent rec & senior centers, good public transport, lots of support for small businesses downtown, and it seems like they're constantly redoing the roads. Two years ago they totally repaved my dinky little side street that gets no through traffic, and it wasn't even that bad (lots of patched cracks but no potholes or anything).

But in my previous state we were paying more than $9K for no services at all. Bigger house and more land, but we were on a dirt road that wasn't maintained by the town or the county, no public transport, tiny library that was pretty useless, crappy schools, etc. I have no idea where the money went in that county, because there wasn't much to show for it!

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43 minutes ago, Corraleno said:

I pay $5K for the same size house on a smaller lot, but the tax rate is actually lower, and I feel like I do get a lot for the money. In addition to good schools, we have a huge library system with lots of programming, lots of summer events in the park, excellent rec & senior centers, good public transport, lots of support for small businesses downtown, and it seems like they're constantly redoing the roads. Two years ago they totally repaved my dinky little side street that gets no through traffic, and it wasn't even that bad (lots of patched cracks but no potholes or anything).

But in my previous state we were paying more than $9K for no services at all. Bigger house and more land, but we were on a dirt road that wasn't maintained by the town or the county, no public transport, tiny library that was pretty useless, crappy schools, etc. I have no idea where the money went in that county, because there wasn't much to show for it!

Yeah, we don't have any of those things here, lol.  I really have no idea where the money goes. I was flabbergasted that if I wanted the street light on, I had to pay for it through the electric company. I don't live on a private road, either, lol. 

 

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19 hours ago, Farrar said:

So, this was fascinating. I never thought much about it beyond, ugh, bill to pay.

I was curious so I looked it up...

"Overall, homeowners pay the most property taxes in New Jersey, which has some of the highest effective tax rates in the country. The state’s average effective rate is 2.42% of a home's value, compared to the national average of 1.07%. With an average effective rate of 0.28%, the least expensive state for property taxes is Hawaii, surprisingly."

We pay less than 1%. If we were paying 3.5% or something like some of you are saying, we'd be gentrified out of house. Like, 3.5% is more than I make in a year. Admittedly I don't make a lot of money, but still.

NJ has some pretty big differences between towns though.    We have a few towns where the average home value is around $800,000, then others where its $200,000 and the taxes will vary accordingly.  

This is for my town which has a mix of million dollar homes and bungalows (we're in a bungalow).   We pay around $3500 to $4500 for our 750 square feet on just under an acre of land.   We have great schools with courtesy bussing, lots of public park lands, roads well maintained, but no library, no sidewalks. 

  • The 2020 tax rate for xxxx is $2.347 per $100 of assessed property value. New Jersey law requires that property taxes be charged to real property at a dollars and cents rate per hundred dollars of assessed value.
  • To calculate the 2020 taxes owed by a property assessed at $300,000:

$300,000 / $100 = $3,000

$3,000 * $2.347 = $7,041.00

Total taxes owed for 2020 would be $7,041.

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We sold our family home of 25 years a year and a half ago...  We lived in a very small town, and paid about $900/year in taxes.  

Now we live in a metro area, and if we had that same house here, we'd be paying close to $5,000/year in taxes.  Of course that's based on the home being valued much higher here.

Our home was about 1650 sq ft, and we're now in an apartment of similar size.

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