Can someone explain the property tax in Dallas? (Houston, Austin: sales, foreclosure)

[GibboK]

We're looking around at all the different suburbs and have noticed people talking a lot about property tax. Apparently Frisco and Plano areas are good because they have low tax. We found a calculator in the Southlake area that (please tell me I'm wrong) that a house worth $800K would pay tax of around $2K a month. Can that be right? Can anyone recommend a site or links that will help us figure this out? Also, is the value of the land or the price of the house?

[GoPadge]

Yep. According to the Tarrent County website's tax estimator, a $800,000 home would have an annual tax of $22,956.97 or a monthly payment of $1913.08. Insurance should run you about $533.33 per month.

(Insurance rate is based on sales price * 0.008 / 12. That should be only considered a ballpark figure as prices can vary quite a bit.)

[cdelena]

In most areas of Texas you will pay between 2.6% to 3.5% per year on the appraised value of the property (land and improvements). You are right, an $800,000 home will probably be taxed about $24,000 a year. You can see the actual appraised values and taxes paid on county web sites. For Dallas county go to http://www.dallascad.org/SearchAddr.aspx.

[socketz]

24k per year.

Can I get a holy cow!!!!

That's just too much, sorry. In CA I paid $500 a month on a 650k home.

That combined with the mortgage on 800k. Wow. 6k per month ?

I suddenly feel like poor white trash.

6-7k per month, your looking at Laguna Beach with Ferraris, Sun Tanned Bodies and Surf Boards. Sorry, but at the end of the day, Southlake is just Southlake - nice in the DFW sense, but nothing that special in the grand scheme of things. But I guess people pay millions to live in Willow Bend and other areas, so I guess there is a market for ultra expensive homes here....just not sure this is where I'd choose to live if I could afford a 6-7k mortgage. Wow. I have to say holy cow again. 24k a year in property tax. Some people don't make that much a year.

By the way, Frisco is at 2.26 percent, which is pretty resaonable.

[KantLockeMeIn]

But you don't pay income tax... If you are looking to buy an 800k house here and can't afford the property taxes after realizing the cost savings due to a lack of income tax, you probably shouldn't be looking at an 800k house.

[kawgpz550]

It really does kind of explain why the foreclosure rate is so high in Texas. I don't think people quite understand what they are getting themselves into between their mortgage (which most people like to push over their limit anyway), insurance, property taxes etc.
Wow, my home here in Arizona is has an appraised value of about $165,000 but worth about $250,000 on the market. We only pay $1200 per year in taxes....However, Arizona is ranked the DUMBEST state for education. I guess you get what you pay for.

[GibboK]

All very good information. And things to consider. We're moving from Australia and just trying to get our heads around it all so we know how much we can afford. I guess that also explains why the schools are so good in Southlake - the tax payers are pumping funds into them which is great. In Sydney where we live now, are taxes are basically dumped into a pool and the heavily populated areas like Sydney, fund the rest of the country. That's why areas like Brisbane have amazing schools, but the school system in Sydney is over crowded and is basically failing. Texas here we come! Property tax and all!

[socketz]

"However, Arizona is ranked the DUMBEST state for education. I guess you get what you pay for."

I'm guessing Texas isn't far behind. We're fortunate in that the Metroplex is fantastic (and parts of Austin and burbs around Houston), but I don't think Texas as a whole is great - someone correct me if I'm wrong. CA is much the same way. Affluent suburbs = excellent schools, all else = abysmal schools.

Here's a report I found of top HS, which are probably the best indication:

http://www.msnbc.msn.com/id/7761678/site/newsweek/

Lots of Metroplex/Austin schools in the top 100.

[cdelena]

Originally Posted by GibboK

...
I guess that also explains why the schools are so good in Southlake - the tax payers are pumping funds into them which is great.
...

Not really. School funding is shifted around the state so your high taxes can easily be used to fund schools elsewhere. The good schools come from good management and demographic advantages, not funding. In the Park Cities they actually have citizens gifting the schools to support some programs because higher school taxes would not stay local but be appropriated by the state.

As I have pointed out before, Texas has very high property taxes, sales taxes, insurance rates, and electricity rates.

[amhi007]

You might want to check on tarrant county's appraisal district website to view property tax history on a home in the neighborhood in which you are looking to buy. Tarrant county is among the highest for property tax and for home insurance. If you are looking at homes in the 800K range, then you need to plan on budgeting on 1500 or more a month for your property taxes alone.

Collin county cad and denton county cad both have helpful websites.

amhi007