Highest property tax in the nation? (Austin, Post: appointed, insurance, jumbo loan) - Texas (TX) - City-Data Forum

astarah · 03-08-2010, 03:04 PM

Austin looks like a beautiful city, but wow, you folks pay a premium!

I did a look up on property tax per state, and it looks like cities in Texas collect the most property tax in the whole USA.
http://articles.moneycentral.msn.com...StateRank.aspx

I suspect this is why home prices are so good? I still want to move here, but ouch!

atxcio · 03-08-2010, 03:15 PM

That link you have shows New Jersey as the highest in the nation, with Connecticut and New Hampshire not far behind. Plus those states have state income tax as well, don't they? Texas does not.

But even if they are not among the highest in the nation, property taxes here are definitely still too high.

astarah · 03-08-2010, 03:38 PM

Nope, Texas is the highest if you only factor in the % you are paying on your home value. Texas is 1.76% where New Jersey is 1.74%. The other places rank higher because houses are also more expensive (400,000 vs 250,000)

At least your property taxes seem to keep home prices down. Where I'm currently at, prices are outrageous & you have to get a jumbo loan to not live in a box.

So... when it comes down to it, if I pay higher property taxes, it should funnel back into the city. If I pay a higher mortgage, a giant bank with a tax shelter in the Virgin Islands gets the extra money.

Hopefully you are getting good services for what you pay in property taxes?

hoffdano · 03-08-2010, 03:41 PM

I am always disappointed when a post doesn't even agree with itself.

As ATXCIO points out - the link shows higher property tax bills in several states.

Texas has higher property tax RATES than most of the nation - but they aren't the highest.

I suggest that rates don't matter nearly as much as actual out of pocket expense per year. With housing values lower than USA averages - the actual property tax bill in Texas is not so bad all things considered. If you pay 2% of appraised value in Texas on a 200K home - that is the same amount of money as 1% on a 400K home in California.

I wish my property tax bill were lower than it is. But it is good to know that property taxes in Texas are local taxes, not state taxes. The taxes are usually collected for schools and local governments (city and county).

astarah · 03-08-2010, 03:47 PM

Actually, property tax IS the highest in Texas.

If you look at income and the rest of the stuff in that link, it spits out what % of your income will go to paying off your house, not your property tax rate.

If you look at the chart, it clearly shows that Texas charges the most for property tax. If you purchase a house in Texas, it appears you should expect to pay 1.76% in property tax on your home. In New Jersey, it appears you should expect to pay 1.74% in property taxes on your home.

atxcio · 03-08-2010, 03:48 PM

Quote:

Originally Posted by astarah

Nope, Texas is the highest if you only factor in the % you are paying on your home value. Texas is 1.76% where New Jersey is 1.74%. The other places rank higher because houses are also more expensive (400,000 vs 250,000)

Wrong. You said highest property taxes in the nation, and cities in Texas collect the most property tax in the whole USA. Clearly, the map shows that that honor goes to New Jersey. Tax rate as a percentage of median home value is just small piece of the puzzle. Why do you think they color NJ in as the darkest color, and Texas right about in the middle?

Now, if you want to talk tax rate as a percentage of median home value, just say so. I agree it's too high, as it is in many places.

astarah · 03-08-2010, 03:52 PM

I am only talking about the property tax that you pay on your home, so Texas appears to be the highest.

The table that you're looking at shows both property tax AND income tax. If you combine these, then yes, if you live in New Jersey, your cost of living is higher. But if you ONLY compare property tax %, Texas takes the most.

Boompa · 03-08-2010, 04:01 PM

Quote:

Originally Posted by astarah

Austin looks like a beautiful city, but wow, you folks pay a premium!

I did a look up on property tax per state, and it looks like cities in Texas collect the most property tax in the whole USA.
Property tax levels by state; buying and owning a home - MSN Money

I suspect this is why home prices are so good? I still want to move here, but ouch!

Your source contradicts your statement?

atxcio · 03-08-2010, 04:21 PM

Quote:

Originally Posted by astarah

I am only talking about the property tax that you pay on your home, so Texas appears to be the highest.

Nope, it's still New Jersey, just as your link shows. Not sure if you are looking at the same link you posted or a different one, but the one you posted shows NJ the highest.

Quote:

The table that you're looking at shows both property tax AND income tax.

Again, no it doesn't. I'm looking at the link YOU POSTED in your original post, and it doesn't take into account income tax. It's purely property tax, and shows New Jersey as the highest.

Quote:

But if you ONLY compare property tax %, Texas takes the most.

Again, NO. New Jersey takes the most. Look at the link. I'm beginning to suspect you are just trolling, but I'll explain your own link to you one more time:

* The average homeowner in New Jersey can expect to pay $6320 in property taxes, or 7.02% of their income.

* The average homeowner it Texas can expect to pay $2232 in property taxes, or 3.5% of their income.

New Jersey is the higher of the two, and collects the most. Do you disagree with that fact? Property tax bills, last I checked, are in dollar amounts... so don't let the 1.76 vs. 1.78 or whatever confuse you. I'm sure the people in New Jersey who are shoveling out 3X the amount of $$$ for property tax are not confused. Go ahead and post your message on their board, I'm sure they'll feel much better after you show them how they aren't paying the highest property taxes in the nation.

orbius · 03-08-2010, 04:28 PM

A lot of states have quite high homestead exemptions as well. Also Texans pay the highest insurance rates in the country if not the world.
http://www.lawchek.net/resources/for.../homestead.htm
I imagine if Ag exemptions were revoked for the rich who are using the rules to not pay their share of taxes on their mansions. The property tax rate could be reduced to a more manageable level for the middle class who are getting absolutely soaked. You will also find I'm sure that the rich in Texas arent getting soaked on their insurance nearly as much as the middle class is. My homeowners went up a ridiculous amount this year how about you?