Can anyone tell me about the property tax? (Houston: sales, real estate)

[Walsr014]

My husband and I are relocating from the New Orleans area and are a little shocked at the high property tax in the area. I know there is no state income tax, but does that make a big enough differance to account for the property tax? Thanks!

[elnina]

Please read this::
Your property taxes, explained - Houston Chronicle
Real Estate Property Tax Information Harris County, TX | Steve Williams Realtor

Not everyone can benefit from living in a state with no income tax. While you'd keep more of your income, you might spend more on other taxes. Plus, you might receive fewer or lower-quality public services.
Texas has balanced it out is with lower-than-average spending, higher-than-average property taxes and higher-than-average sales taxes.
The great strength of the income tax is that it can be made proportional to a taxpayer's ability to pay, but in Texas, those with the lowest income pay the highest proportion of their income in other taxes.
The median Texas homeowner pays the 4th highest effective property taxes nationwide. But inside Texas, families in Fort Bend, Collin, and Travis counties pay the most.

[astrohip]

Originally Posted by Walsr014

My husband and I are relocating from the New Orleans area and are a little shocked at the high property tax in the area. I know there is no state income tax, but does that make a big enough differance to account for the property tax? Thanks!

Depends on your income, and your property. States that have income taxes often take around 4-5% for average income levels. Our property taxes are around 2-3%, versus 1% in many other states. Do the math.

[chris_ut]

Originally Posted by astrohip

Depends on your income, and your property. States that have income taxes often take around 4-5% for average income levels. Our property taxes are around 2-3%, versus 1% in many other states. Do the math.

Since most people buy homes valued at 2.5 times their annual income a 3% property tax equates to a 7.5% income tax.

[fbf2006]

I do wonder how it pans out generally. Here's an analysis of tax burdens by state https://wallethub.com/edu/states-wit...-burden/20494/

As I hope to move from NJ, I personally don't worry about it. it does seem like the sales tax burden in TX is much higher though. Based on the link, Louisiana seems to have a higher tax burden than Texas. it all depends on income and property in the end.

[usc619]

Originally Posted by astrohip

Depends on your income, and your property. States that have income taxes often take around 4-5% for average income levels. Our property taxes are around 2-3%, versus 1% in many other states. Do the math.

Most get tax breaks and receive a state refund

[spider07]

its a crock that needs to be fixed. It's a complete and total ripoff and our State lawmakers should be ashamed they have allowed this to go on. The argument that "we don't have a state income tax so it's all good" is nothing but bull crap too. I would happily pay a tax on what I earn, but my house as are most houses, 2 to 3 times that amount. So you take a property tax rate of 3.5 and you are essentially paying 9% income tax. Very few states have income taxes that high, and they still allow you to take deductions.

[K LoLo]

You could always buy a cheaper house.

[Walsr014]

Thanks for the info. I am just a little confused with how they determine the appraised value of the home. We are very interested in a home that is currently listed for 345 and has been on the market for 2 months. Before making an offer we checked the property tax and the appraised value is 375. If no one is buying at 345, how did the appraised value get to be 375? We have noticed most homes are appraised lower than the list price. We are ok with the tax as is, but who's to say the appraised value won't jump substantially.

[usc619]

Originally Posted by Walsr014

Thanks for the info. I am just a little confused with how they determine the appraised value of the home. We are very interested in a home that is currently listed for 345 and has been on the market for 2 months. Before making an offer we checked the property tax and the appraised value is 375. If no one is buying at 345, how did the appraised value get to be 375? We have noticed most homes are appraised lower than the list price. We are ok with the tax as is, but who's to say the appraised value won't jump substantially.

It's a money racket, The county will run up the appraisal.