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Old 04-01-2013, 11:22 AM
 
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If tax rate is 2.7% in A vs 2.2% in B, how much money one would save 0ver 10 years by buying a $500,000 house in B?

If 0.5% of $500,000 is $2500 then in 10 years you save $25000 in taxes?
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Old 04-01-2013, 12:41 PM
 
162 posts, read 302,570 times
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Anybody?
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Old 04-01-2013, 12:58 PM
 
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Quote:
Originally Posted by Jasmine0 View Post
If 0.5% of $500,000 is $2500 then in 10 years you save $25000 in taxes?
This is only true is taxes will stay the same for 10 years.
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Old 04-01-2013, 01:01 PM
 
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Of course home's market value, accessed value and tax rates will change but this is historic difference between A & B's tax rates and appreciation values are somewhat similar as well so roughly one would save 0.5% annually and 0.5 x 10 savings seems sizeable.
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Old 04-01-2013, 01:05 PM
 
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Typically the assessed value (which is what the tax is computed from) is not equal to the house price. In all cases I know of it is less but the relation between assessed value and actual value is, well, impossible to understand.
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Old 04-01-2013, 01:07 PM
 
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Taxes? Taxes change when the wind blows. There is no way to estimate. Your town could need a new sewer system, fire trucks, town hall, school, etc.

If you have knuckleheads running your town your tax rate could go up 5% per year, for 10 years.
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Old 04-01-2013, 01:17 PM
 
936 posts, read 2,195,987 times
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Quote:
If tax rate is 2.7% in A vs 2.2% in B, how much money one would save 0ver 10 years by buying a $500,000 house in B?

If compounded yearly then the total taxes for scenario A would be $152,641, and scenario B would be $121,554.
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Old 04-01-2013, 04:05 PM
 
Location: Hernando County, FL
8,488 posts, read 20,572,075 times
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Quote:
Originally Posted by Jasmine0 View Post
Of course home's market value, accessed value and tax rates will change but this is historic difference between A & B's tax rates and appreciation values are somewhat similar as well so roughly one would save 0.5% annually and 0.5 x 10 savings seems sizeable.
The math was simple and you already ran it in your first post.
What was your actual question?
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Old 04-01-2013, 04:17 PM
 
Location: NJ
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You really need to know if house price is close to tax assessment. They can be drastically different and therefore you difference in numbers could also be very different.
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Old 04-01-2013, 04:31 PM
 
162 posts, read 302,570 times
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Quote:
Originally Posted by Mike1306 View Post
The math was simple and you already ran it in your first post.
What was your actual question?
I only wanted to know if it is really as simple as 2+2 or as complicated as an algebraic theorem with other factors that I don't know of.
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