Austin move looking for info & advice Please (Round Rock, Frisco: best cities, sale) - Texas (TX) - Page 2 - City-Data Forum

Trainwreck20 · 03-25-2008, 06:01 PM

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Property tax is extremely high here, some of the highest in the nation. It depends on district and county (Austin is in 3 counties), but the property tax can be up to 1%/monthly.

The maximum property tax that is in the normal range is right around 3%/year, which would be ~0.25%/month. I live in SW Austin and pay ~2.5%/year. It is based on the full appraised value of the house and generally adjusted every year.

wr_uk · 03-26-2008, 10:04 AM

so.. for example if we bought a new house for say $200,000 we would pay $6000 per year property tax? or is the appraised value something different to what we actually pay for the house in the first place??

If it is different what are the main factors that most influence the appraised value?

Trainwreck20 · 03-26-2008, 10:30 AM

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what are the main factors that most influence the appraised value?

Homestead exemption usually cuts 15k off the appraised value (~$450/yr at 3%), so a 200k house would be around $5500 in taxes (also @3%). It is not difficult to get into 2.5% areas, which would cut off another 1/6th (or around $900 more).

Appraised value is based on the value of houses in the area. Although the appraisal board does not have direct access to purchase/sales prices, they probably really know what the values are. In my experience, the appraised value usually runs between 5-20 percent behind the actual market value. Rapdily appreciating areas tend to be lag by more, while flat value areas may be fairly close to market value. There is a 10%/yr cap on the amount that they can increase a homestead taxable value on a house, as well.

If you itemize, property taxes can also be deducted from your taxable income. If you are already completely above the standard deduction, you will save the tax bill x your tax bracket. Typically, 1/4 to 1/3 of the tax bill, or $1400 to $1700 in your example.

You can do a search on here to find lots of tax info, it is quite a popular topic....

TexasHorseLady · 03-26-2008, 10:37 AM

You'd have a homestead exemption that would lower your tax bill.

As for appraised value and factors influencing it, location, age of home, size of home, all the usual things that influence appraised value anywhere. But tax appraised value and appraised value for selling are two different things, generally. The tax appraisal is based on your specific area rather than on your specific home (and you can contest it if there are specific issues that make your house less valuable than the average in your area). I just checked MLS listings in area 1N (Austin taxes, therefore) and found a listing at about $200,000, and the estimated taxes on it were $3,113, actual taxes $2787 for 2007 (2.1558 rate). Cedar Park and Leander have higher tax rates, but the highest I could find for a $200,000 house there was $5,053. Just to give you an idea.

wr_uk · 03-26-2008, 10:03 PM

wow... lot of dead cash each year ...what a nightmare!!! What do you actually see for all this money you pay.

I'm originally from the UK we paid something similar in the UK called council tax... again based on a appraised value... I'll have to contact people back in the UK to see what the costs are there and also what they are here in the (if they have it here) Seattle area.

We've just come over last year and are staying with my wifes family while we save some money towards our own place.

So you pay this tax in Austin .. are you exempt from any other taxes. Or do they just bleed you dry?

atxcio · 03-26-2008, 10:33 PM

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Originally Posted by wr_uk

So you pay this tax in Austin .. are you exempt from any other taxes. Or do they just bleed you dry?

You don't have to pay state income tax, like in many other states. Also, since in other states you can deduct from your federal income taxes both a) property taxes and b) state income taxes, in Texas (no state income tax) you can deduct a) property taxes and b) sales tax on everything you purchase.

So, you do get some exemptions... whether they make up for the high property tax or not is debatable.

wr_uk · 03-26-2008, 10:53 PM

humm... not sure weather we would benefit as I work remotely here in the states for a UK company. Although I have to file taxes with the IRS I wont actually pay taxes over here as I'm paid in British pounds in an account in the UK and taxed over there. Only my wife pays taxes here as she works at starbucks.

Humm .... we desperately want to move down to Texas as well. We are really going to have to look at my tax situation and work out overall living costs ... taking everything into consideration. If we are really going to struggle year, after year, after year... theres no point!

Would you say that the cost of living is cheaper that say further north like say in washington state?

miss_sunshine · 03-27-2008, 01:49 AM

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Originally Posted by wr_uk

humm... not sure weather we would benefit as I work remotely here in the states for a UK company. Although I have to file taxes with the IRS I wont actually pay taxes over here as I'm paid in British pounds in an account in the UK and taxed over there. Only my wife pays taxes here as she works at starbucks.

Humm .... we desperately want to move down to Texas as well. We are really going to have to look at my tax situation and work out overall living costs ... taking everything into consideration. If we are really going to struggle year, after year, after year... theres no point!

Would you say that the cost of living is cheaper that say further north like say in washington state?

Washington state cost of living is 20% higher than Austin Texas. And housing is 41% higher than Texas.

PayScale - Cost of Living Cities - Seattle Washington and Austin Texas

jwb123 · 03-27-2008, 07:00 AM

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Would you say that the cost of living is cheaper that say further north like say in washington state?

We moved from Washington State, and yes, across the board the cost of living is lower here in Austin. I am talking normal day to day stuff, entertainment, eating out, groceries, gas, insurance - that kind of thing....

The property taxes are just a pill you will have to swollow like the rest of us transplants who move here from elsewhere... believe me, it's a big pill, I know! If you have children, the tradeoff is good schools. As a community member, the tradeoff is that roads are often improved, the area is kept looking nice, good city run amentities, etc. Is it worth the high bill? I don't know... but moving to the Austin area for us has been a huge quality and quantity of life upgrade, so for us, it's been worth it.

woodinvilleguy · 03-27-2008, 10:59 AM

You may want to research the Avery Ranch area. I think you will find 4 bedroom houses slightly more that 180 but you can get close. I would suggest that you find a house to lease for a while to get your feet wet (even though I didn't but...that is a different story)

I work in the industry and I find Avery to be close enough in to have a short commute. I have found that when I bike commute, it takes me the same amount of time to get to work from Avery, 20 minutes. My neighbor works for Sony Games and it sounds like they are hiring.