Home Property Tax?

[UserX]

Texas property tax is a rip off. You don't have state income tax, this is where they get you instead.

I pay 1%, and my property taxable value cannot increase by more than 1% a year, no matter how much market value of my house rises. And my house here has been increasing in value by 10+% a year.

[8mpg]

Texas property tax is a rip off. You don't have state income tax, this is where they get you instead.

I pay 1%, and my property taxable value cannot increase by more than 1% a year, no matter how much market value of my house rises. And my house here has been increasing in value by 10+% a year.

I think Im better off paying property tax than I would be paying a state income tax. All depends on the situations. If you are paying 1% of your property value and state tax... you are surly paying more than me.

[UserX]

I think Im better off paying property tax than I would be paying a state income tax. All depends on the situations. If you are paying 1% of your property value and state tax... you are surly paying more than me.

I more than make up for it in home equity and utility savings. I put as much, or more, into savings here as I did in TX.

[bcoop]

I pay 1%, and my property taxable value cannot increase by more than 1% a year, no matter how much market value of my house rises. And my house here has been increasing in value by 10+% a year.

Until the bottom falls out again, which it will, and it's worth a fraction of what you paid for it.

[slow99]

Texas property tax is a rip off. You don't have state income tax, this is where they get you instead.

I pay 1%, and my property taxable value cannot increase by more than 1% a year, no matter how much market value of my house rises. And my house here has been increasing in value by 10+% a year.

I think Im better off paying property tax than I would be paying a state income tax. All depends on the situations. If you are paying 1% of your property value and state tax... you are surly paying more than me.

I more than make up for it in home equity and utility savings. I put as much, or more, into savings here as I did in TX.

It's nothing but simple math. Are most people better off paying 1% less on property or 10% more on income? The overwhelming majority of people are worse off paying CA income tax than TX property tax, ceteris paribus. I'm using round numbers and assuming a non-graduated income rate for CA, but the point is the same nonetheless. The other considerations don't bridge the gap.

CA:
Income $300,000
Home Value $1,000,000
State Income /Property Taxes: $40,000

TX:
Income $300,000
Home Value $1,000,000
State Income/Property Taxes: $20,000

With 1% vs 10% delta, it doesn't even start to break even until the value of your home is 10x your income, which is pretty rare. Without using the 1 and 10 numbers for the deltas, you just divide the income rate for CA by the property rate for TX to get the difference in income vs home value to see the breakeven point. If we use 8% and 1.5% difference, then you'd have to have a home valued at 5.33x your income to breakeven:

CA Income $300,000
Home Value $3,000,000
State Income/Property Tax: $60,000

TX Income $300,000
Home Value $3,000,00
State Income/Property Tax: $60,000

[dblack1]

I think Im better off paying property tax than I would be paying a state income tax. All depends on the situations. If you are paying 1% of your property value and state tax... you are surly paying more than me.

Property tax is a deduction. Depending on income it isn't that much. $8k a year is really $5500.

I moved from paying 7% to 0%. The property taxes on a 500k house are about $3-4k more without having to pay 7% tax.

[4king]

New home owner here, my home value increased by $80k by the time we had to file as a home propery, so like the op said my payments went up by $700 a month.

With tax season we've had 2 or 3 houses in our development come up forsale, all on smaller lots, with no upgrades, and 2 car garages, SELLING for $120k over what we signed for.

In this market the house is the only investment that I'm making money on. Savings account .01% interest rate, yeah ok. My 30 year payoff amount is nearly what a neighbor just sold their home for

[4king]

New home owner here, my home value increased by $80k by the time we had to file as a home propery, so like the op said my payments went up by $700 a month.

With tax season we've had 2 or 3 houses in our development come up forsale, all on smaller lots, with no upgrades, and 2 car garages, SELLING for $120k over what we signed for.

In this market the house is the only investment that I'm making money on. Savings account .01% interest rate, yeah ok. My 30 year payoff amount is nearly what a neighbor just sold their home for

[Baron Von Crowder]

New home owner here, my home value increased by $80k by the time we had to file as a home propery, so like the op said my payments went up by $700 a month.

With tax season we've had 2 or 3 houses in our development come up forsale, all on smaller lots, with no upgrades, and 2 car garages, SELLING for $120k over what we signed for.

In this market the house is the only investment that I'm making money on. Savings account .01% interest rate, yeah ok. My 30 year payoff amount is nearly what a neighbor just sold their home for

I did pretty well, we bought 6 years ago at 148k, and a similar house two blocks down just sold in two weeks with a listing price of 240k.

[slow99]

I did pretty well, we bought 6 years ago at 148k, and a similar house two blocks down just sold in two weeks with a listing price of 240k.

8% cagr, pretty good. I'm at 19% cagr thus far. I knew it'd do well but it's way better than I projected.

[UserX]

It's nothing but simple math. Are most people better off paying 1% less on property or 10% more on income? The overwhelming majority of people are worse off paying CA income tax than TX property tax, ceteris paribus. I'm using round numbers and assuming a non-graduated income rate for CA, but the point is the same nonetheless. The other considerations don't bridge the gap.

CA:
Income $300,000
Home Value $1,000,000
State Income /Property Taxes: $40,000

TX:
Income $300,000
Home Value $1,000,000
State Income/Property Taxes: $20,000

With 1% vs 10% delta, it doesn't even start to break even until the value of your home is 10x your income, which is pretty rare. Without using the 1 and 10 numbers for the deltas, you just divide the income rate for CA by the property rate for TX to get the difference in income vs home value to see the breakeven point. If we use 8% and 1.5% difference, then you'd have to have a home valued at 5.33x your income to breakeven:

CA Income $300,000
Home Value $3,000,000
State Income/Property Tax: $60,000

TX Income $300,000
Home Value $3,000,00
State Income/Property Tax: $60,000

I can't argue with your math, but there are other factors to consider. Since moving here, I've paid $20k in state income tax, but my house has appreciated $100k. Seems like a good tradeoff to me. Conisdering my house in TX appreciated a whopping $7k in the six years I owned it, and I paid $14k in property tax on it.

[2011GT]

Property taxes in Texas are insane regardless of the fact there's no state income tax. Look at Nevada, no state income tax and property taxes are still less then half of Texas's taxes.

[UserX]

Property taxes in Texas are insane regardless of the fact there's no state income tax. Look at Nevada, no state income tax and property taxes are still less then half of Texas's taxes.

Yup. Owning a house in TX is an expense, really. Not just because of the high property tax, but because of all the available land and new construction. You're lucky if your house appreciates more than the amount you pay in taxes every year.

The reason that housing appreciates so much in SoCal and the Bay Area is, there's no land and very little new homes being built. Mountains and ocean limit the sprawl, and the weather changes drastically the further you go away from the coast, making housing in good weather areas very desirable.

There are shit tons of people here that paid $200k for their house that's worth over a million dollars today. That doesn't happen in TX, never will. That's why they have the 1% limit on taxable value increases, so retirees don't get forced out of their homes because they appreciate so much and they wouldn't be able to afford the taxes on it.

If you buy smart and play your cards right, you can make a ton of money owning a house here. The amount of money my house will be worth will exceed what I pay in state income tax.

[Forever_frost]

Every year I get an increase in property tax, I go up there and argue. It takes about 10 minutes and I'm back out the door. I haven't seen my value increase in 7 years but then again, I don't actually owe the taxes so they don't fight me too hard.