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After reading all these posts I think I might end up in Oklahoma. I'm retired with a fix income so buying a house is easy but staying in it might not be. Like you said research it best because property tax does change and I almost bought a house east of Dallas which would of had very high property tax and if I would of bought the house I might be living on the street now.
Lots of Texans going to Oklahoma and have been for many years.
My wife and have been trying to retire in our native state of Texas but we are finding that if Texas (at least in some west Texas counties) can't get enough property tax out of you, they appraise your property at 20 to 35% above a market value. I would not recommend Texas as a retirement state unless you are have a high income and plan to live very modestly.
For middle & lower class incomes, you are correct- the total tax burdens are often a wash once you add up the high property tax and sales tax rates in TX.
In moving from Chicagoland to Fort Worth, I gave up the following:
- State Income Tax
- County Income Tax
- $240 a month railway ticket to commute to work (gas for my car costs me between $30 and $40 a month, which is still cheaper than it cost in gas to fill up the car just to get me to the train station to take me to work in the morning)
- $300 a month elementary school tuition (because I refused to send my son to the public schools up north. Now, I'm happy to send him to the exemplary rated public schools in KISD)
- $300 - $400 a month in winter gas heating bills (in comparison, my heating bills are around $40 a month; my air electric bills average $120 a month year round - they peak at $175 a month in summer).
But the most priceless thing I gained by moving to Texas? That extra 4 hours a day in leisure time because I don't have to commute 2 hours each way to work...
After reading all these posts I think I might end up in Oklahoma. I'm retired with a fix income so buying a house is easy but staying in it might not be. Like you said research it best because property tax does change and I almost bought a house east of Dallas which would of had very high property tax and if I would of bought the house I might be living on the street now.
It is very good that you are doing your research! Many don't and wind up as you mentioned here. Oklahoma is still a very beautiful State and when you reach the native population, and country areas, not much different from Texas. I've been to many parts of Oklahoma and certainly would have no problem living there as well.
Lots of Texans going to Oklahoma and have been for many years.
My wife and have been trying to retire in our native state of Texas but we are finding that if Texas (at least in some west Texas counties) can't get enough property tax out of you, they appraise your property at 20 to 35% above a market value. I would not recommend Texas as a retirement state unless you are have a high income and plan to live very modestly.
During the past decade of "Good Times" the taxing authorities routinely jumped property taxes as much as they could get away with. Many local taxing authorities have the policy if the disagreement is less than 1/3 the total tax amount they won't even entertain a property owner's request to review their inflated tax rate. The taxing authorities knew this and kept their increases just under that radar blip.
During all of the urban sprawl over the last 10 years there were many new developments being put in rural areas. When the developer charged $50K for a .2 Acre lot the taxing authorities used that to hyperinflate the values of those rural properties. Those rural property owners bought the land to get away from urban areas and did not pay anywhere near that price. If they tried to sell it during the last decade they most certainly could not ask the inflated tax rate amount. These property owners did not have the services, the cable TV, internet, fiber optics, yada, yada, that these developments had and yet somehow magically their properties were considered just as valuable. I know several who tried to fight those ridiculous tax increases but their claims were not even looked at because they did not fall into the 1/3 range mentioned above.
The irresponsibility of the governments from local to State are now coming home to roost. These government agencies and entities now can not live with the high taxes they have forced down peoples throats and want even more tax increases. They have no fiscal intelligence or responsibility. All they are going to do is cause a flight out of Texas when people are taxed out of their homes!
After reading all these posts I think I might end up in Oklahoma. I'm retired with a fix income so buying a house is easy but staying in it might not be. Like you said research it best because property tax does change and I almost bought a house east of Dallas which would of had very high property tax and if I would of bought the house I might be living on the street now.
Home ownership in Texas is expensive and lot of Texan's are fleeing to Oklahoma to avoid the high property taxes here.
However, that's led to an horrendous increase in asking prices for homes in the Sooner state, especially along the Red River counties. They seem to have the idea that they can ask anything they like for a house and some idiot Texan will pay it. They're generally right. The point is that if you're going to look in Oklahoma....look deep inside the state!
Moreover, you'll pay a state income tax in Oklahoma (currently 11%, I think), plus their moderate property tax. You'll have to decide for yourself whether or not your particular circumstances make it worthwhile. Sales taxes, vehicle registration and home/car insurance is about the same.
But, don't forget the qualifiers to Texas property taxes. You can can claim a homestead exemption, which makes the first $12 or 15,000 of assessed value exempt and, if you're over 65, your taxes will never go up. There's also a disabled person exemption and, if you're a 100% disabled Veteran (as determined by the VA), you'll pay no property taxes at all, unless you improve the property and then you'll only pay on the improvements.
But, don't forget the qualifiers to Texas property taxes. You can can claim a homestead exemption, which makes the first $12 or 15,000 of assessed value exempt and, if you're over 65, your taxes will never go up. There's also a disabled person exemption and, if you're a 100% disabled Veteran (as determined by the VA), you'll pay no property taxes at all, unless you improve the property and then you'll only pay on the improvements.
AND, don't forget that if you want you can apply to have the property taxes deferred. You can only do this if over the age of 65.
Tax Deferal for Age 65 or Older or Disabled Homeowner
If you are a homeowner who qualifies for the Age 65 or Older or the Disability exemption, you may also defer or postpone paying any property taxes on your home for as long as you own and live in it. It is important to note that this deferral only postpones your taxes and does not cancel them. It also accrues eight (8) percent interest annually until the deferral is removed. When the property is sold or the ownership is transferred to the estate/heirs, the taxes and accrued interest become payable. The Tax Deferral Affidavit form is available on this site or you may contact Customer Service at 214-631-0910.
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If you are not planning on passing the house or proceeds from the sale of the house after you are gone along to your heirs and money is tight then this might be the way to go for some.
AND, don't forget that if you want you can apply to have the property taxes deferred. You can only do this if over the age of 65.
Tax Deferal for Age 65 or Older or Disabled Homeowner
If you are a homeowner who qualifies for the Age 65 or Older or the Disability exemption, you may also defer or postpone paying any property taxes on your home for as long as you own and live in it. It is important to note that this deferral only postpones your taxes and does not cancel them. It also accrues eight (8) percent interest annually until the deferral is removed. When the property is sold or the ownership is transferred to the estate/heirs, the taxes and accrued interest become payable. The Tax Deferral Affidavit form is available on this site or you may contact Customer Service at 214-631-0910.
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If you are not planning on passing the house or proceeds from the sale of the house after you are gone along to your heirs and money is tight then this might be the way to go for some.
Right, and if you have the disable exemption, you can pay out your taxes in 4 equal installments without penalty or interest. I think that may apply to seniors over 65 as well, but I'm not sure.
Right, and if you have the disable exemption, you can pay out your taxes in 4 equal installments without penalty or interest. I think that may apply to seniors over 65 as well, but I'm not sure.
This is from the Dallas County Tax offices website:
Age 65 or Older Homestead Exemption
You may qualify for this exemption on the date you become age 65. You must submit proof of age. Acceptable proof includes a copy of the front side of your driver's license or a copy of your birth certificate. If you qualify for the 65 or Older Exemption, there is a property tax “ceiling” that automatically limits School taxes to the amount you paid in the year that you qualified for the homestead and the 65 or Older exemption. A County, City or Junior College may also limit taxes for the 65 or Older Exemption if they adopt a tax ceiling. Tax ceiling amounts can increase if you add improvements to your home (i.e., adding a garage, room or pool).
In addition, 65 or Older homeowners who purchase or move into a different home in Texas may also transfer the percentage of school taxes paid, based on the former home’s school tax ceiling. This is commonly referred to as a Ceiling Transfer. To transfer your tax ceiling for the purposes of County, City or Junior College District taxes, however, you must move to another home within the same taxing unit. You must request a certificate from the Appraisal District for the former home and take it to the Appraisal District for the new home, if it is in a different district.
Surviving Spouse of a person who received the 65 or Older Exemption
If qualified, a Surviving Spouse may receive an extension of the 65 or Older exemption and the tax ceiling. To qualify, your deceased spouse must have been receiving the 65 or Older exemption on the residence homestead or would have applied and qualified before the spouse's death. The Surviving Spouse must have been age 55 or older on the date of the spouse’s death. You must have ownership in the home and submit proof of age and proof of death of your spouse.
Disability Homestead Exemption
Persons with disabilities may qualify for this exemption if they 1) qualify for disability benefits under the federal Old Age, Survivors and Disability Insurance Program administered by the Social Security Administration or 2) have a physician's statement indicating the date the disability began and that you are unable to engage in any substantial gainful work for a period which has lasted or can be expected to last for a continuous period of not less than 12 months or that can be expected to result in death.
If you qualify for the Disability Exemption, there is a property tax “ceiling” that automatically limits School taxes to the amount you paid in the year that you qualified for the homestead and Disability exemption. A County, City or Junior College may also limit taxes for the Disability Exemption if they adopt a tax ceiling. Tax ceiling amounts can increase if you add improvements to your home (i.e., adding a garage, room or pool).
In addition, Disabled homeowners who purchase or move into a different home in Texas may also transfer the percentage of School taxes paid, based on the former home’s school tax ceiling. This is commonly referred to as a Ceiling Transfer. To transfer your tax ceiling for the purposes of County, City or Junior College District taxes, however, you must move to another home within the same taxing unit. You must request a certificate from the appraisal district for the former home and take it to the appraisal district for the new home, if it is in a different district.
You may not claim both the Age 65 or Older and Disability exemption in the same tax year.
Surviving Spouse of a Person who Received the Disability Exemption
There may be additional benefits for the Age 55 or Older Surviving Spouse of a person who was receiving the Disability exemption before their death. You may contact the Customer Service department for additional information at 214-631-0910.
Residence Homestead Exemption for Disabled Veteran with 100% Disability
You qualify for this exemption if you are a disabled veteran who receives from the United States Department of Veterans Affairs or its successor 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disability or of individual unemployability. This exemption applies to the property on which you have your residence homestead exemption as of January 1, beginning with the 2009 Tax Year. This entitles you to an exemption of the total appraised value of your residence homestead.
An exemption application must be completed and accompanied with a copy of your V.A. award letter or other document from the United States Department of Veterans Affairs showing 100 percent disability compensation due to a service-connected disability and a rating of 100 percent disabled or individual unemployability.
A surviving spouse or child does not qualify for the 100% Disabled Veteran Homestead Exemption.
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