Texas Property Taxes (Austin: house, to buy, school)

[circledmetalart]

I haven't seen many references to the really high real property taxes in Texas. Although I'd like to relocate in Texas, the property taxes put me off. I doubt that the no-state income taxes will benefit my meager income anyway, so I am most concerned with an annual and ever increasing tax payment. I am speaking of a residence value around $175000...an annual property tax of $1000-$1500 would be something I could handle, but more than that, no. Heading into retirement....

[hoffdano]

There are often discussions about property taxes in Texas. The rates are higher than in most parts of the US. But actual cash paid yearly may not be higher because homes are less expensive than most parts of the country. Depending on where you live, rates range from 1.9% to 3% of appraised value. That means a $200K house will have an annual bill of perhaps $4000 or so.

Is your post a rant or do you have a question?

[TheyCallMeDerek]

No state income taxes either, so at times it balances out...

[neddy]

For our house approx 175000 taxes are about $5900.2.9% I think. Outside of Austin

[piyf]

Originally Posted by TheyCallMeDerek

No state income taxes either, so at times it balances out...

Read his post again. He already stated that.

OP, why Texas to retire?

[CptnRn]

There is also a homestead exemption which will reduce your taxes some. Depending on where you come from there is a good chance that a $175,000 house will be a lot more then you are used to, so you could possibly find a less expensive home that suits your tastes.
The map on this page shows which counties in Texas have the lowest property taxes. Moderator cut: link removed, linking to competitor sites is not allowed

You also need to consider your total cost of living, Texas comes in first or second lowest of all the states depending on what report you read. Texas Cost Of Living

Moderator cut: link removed, linking to competitor sites is not allowed

Cost of Living by State

[Rakin]

If you are over 65 there is an age exemption that also limits your taxes.

[catman]

My taxes are about $4K on my $155K house here in Ft Worth. My appraisal went up $15K this year, and all I did to 'improve' it was paint it. I'll be 65 next year...I hope it helps.

[CptnRn]

CNN Money Magazine lists Austin as place #9 in top 25 Best Places to Retire.

25 Best Places to Retire - Durham, NC (1) - CNNMoney.com

[High_Plains_Retired]

I have two homes in Texas and one in New Mexico. The total market value of both Texas homes is about 22% of the value of the single New Mexico home yet the taxes on the Texas properties are approximately 44% of my total property tax bill for both states.

I can say for certain that in my case that the lack of a State income tax does not balance out Texas' high property taxes, at least not in the particular west Texas counties where I have homes. From my experience, I would not recommend Texas as a retirement State for anyone who plans to save income taxes on a moderate retirement income but have an expensive home. Also you should know that a very small handful of Texas counties levy a stiff annual property tax on vehicles.

In summary, be VERY careful which Texas county and tax district you decide to buy property in. Texas has 254 counties with many more individual taxing districts. Each county has a significant amount of autonomy when it comes to appraisals and tax rates. Online you can find current data on the county tax rates per county. What most of these charts do not show you are the added municipal, school, roads, hospital, water district, bridge and other taxes that are added to the county rate.

Texas high property taxes have held the State's property values at bay in many areas. Whether this is good or bad is arguable based on your own situation.