Are new home owners paying these high property taxes? (Dallas: credit, buying a home)

[ufcrules1]

It sounds like Dallas might not be a good fit for you.
We moved here from Maryland back in 2018 and
have saved a massive amount in taxes due to the no
state income taxes. As you have mentioned already,
you too would also have a lower tax burden if you moved
here. As long as you are working, you will make out.

We have had a TON of transplants here and they came from
all over the place because the cost of living combined with strong economy
ton of jobs, great schools and many other factors make this an outstanding place
to live.

[stan4]

Originally Posted by Hopelesscause

Property Taxes are EXTREMELY UNFAIR to newcomers!! When I closed on my home in 2018, I piggybacked off of the previous owner’s appraisal. The next year’s appraisal was based on the purchase price, some $81k more than the previous appraisal. Next year is 10% more than that (the state max). Meanwhile, my “deadbeat” neighbors who live in similar size lots/homes are allowed to pay off an appraisal between $125-150k less simply because they’ve been there so long. I can’t even deduct the entire property tax assessment due to the stupid Trump tax. It sux even more that the $10,000 limit doesn’t even adjust for inflationary property tax assessments.
I am appealing this increase and am hoping for the best.

That's why you Z out the sale.

[Cuero]

Originally Posted by Hopelesscause

Property Taxes are EXTREMELY UNFAIR to newcomers!! When I closed on my home in 2018, I piggybacked off of the previous owner’s appraisal. The next year’s appraisal was based on the purchase price, some $81k more than the previous appraisal. Next year is 10% more than that (the state max). Meanwhile, my “deadbeat” neighbors who live in similar size lots/homes are allowed to pay off an appraisal between $125-150k less simply because they’ve been there so long. I can’t even deduct the entire property tax assessment due to the stupid Trump tax. It sux even more that the $10,000 limit doesn’t even adjust for inflationary property tax assessments.
I am appealing this increase and am hoping for the best.

That appraisal difference is temporary and their appraisals should be adjusted next year. If not, then protest and say your house was not appraised the same as your neighbors when both are similar. That should be an automatic reduction.

People are also wrong about the property tax cap and the 2017 tax law. Your standard deduction doubled and child tax credits went up along with the phaseouts of those. If your income was into the six figures then while on the surface you may have deducted your full state and local taxes at the bottom of schedule A you lost it. So the new law changed many things but bottom line is most pay about the same as before, maybe a little less or more depending on your circumstances.

[hindsight2020]

Originally Posted by wheelsup

A 200k home bought 5-10 years ago is not a 200k home now. A 400k home in 2020 was a 250k home five years ago. Hardly a high end area. A 200k home in 2020 was 125k or so 5-10 years ago...hardly an area most here would want to live.

My current home was bought for 176k a decade ago.

Had no idea housing inflation was that bad in DFW. That sucks. I guess I count myself lucky not to have to endure that kind of housing pressure just to insulate myself and family from "personal insecurity" down here in small-fry Comal county.


At any rate, none of that tangent was the point of my previous point. The math is simple. You either wanna drive to domicile, or you want to save on taxes and commute for the rest of your work life. The rest is frankly, sports whining. Personally, I'd gladly pay a couple thousand bucks more to get to drive to work versus commuting. It's not like you're saving 10 grand a year by staying in NC anyways, unless you can get and/or prefer a CLT domicile. Good luck to ya.

[Rakin]

Originally Posted by stan4

That's why you Z out the sale.

Can't do that anymore. MLS rules prevent it now unless there is a really, really good reason.

I have not seen it done in maybe 4-5 years.

What that means for the unknowing is not posting the actual sales price in the MLS system for the Realtors, Appraisers (and tax appraisers) to see.

[wheelsup]

Originally Posted by hindsight2020

Had no idea housing inflation was that bad in DFW. That sucks. I guess I count myself lucky not to have to endure that kind of housing pressure just to insulate myself and family from "personal insecurity" down here in small-fry Comal county.


At any rate, none of that tangent was the point of my previous point. The math is simple. You either wanna drive to domicile, or you want to save on taxes and commute for the rest of your work life. The rest is frankly, sports whining. Personally, I'd gladly pay a couple thousand bucks more to get to drive to work versus commuting. It's not like you're saving 10 grand a year by staying in NC anyways, unless you can get and/or prefer a CLT domicile. Good luck to ya.

First year tax savings would be around $35k with each year afterward provided we both keep working at similar income levels (knock on wood) savings would be $10k a year. So not insignificant.

I don't need to make a choice though. I can drive to work and save on taxes. I was just surprised how high the property taxes are in the DFW area.

In another state I lived in, as property values increased the rate would adjust down to give about a 2% increase per year to fund government. They didn't need a 10% YOY increase in perpetuity. The cities down there must be trying everything they can to spend "their" new revenue.

[Johnhw2]

Originally Posted by wheelsup

Looking at homes in the DFW area (Grapevine, Southlake, TC, Colleyville etc) looks like property taxes are running over $10k per year on most of the mid level homes ($400k-$500k). Is that accurate? It just seems extremely high to me and yes I know there is no state income tax but still...jeez. We were planning to move to escape NC income tax but looks like that will mostly be eaten up with property taxes and only save a couple thousand a year.

All owners are paying these high property taxes not just new home owners. I agree they are high but less so than a high tax state like Nj where the combined income and property taxes far exceeds what a comparable Texan would pay.

I looked at moving to NC, my local and state tax situation would be worse there than here, I am retired and can live where I want. Only TN was a state where I found a significant savings vs living here. Fla was not a lower tax place when I compared the property taxes associated with higher property values in the places I considered there.

Schools and infrastructure and law and order is what we spend most local and state taxes on the cost of providing those things is not cheap any where. When I looked at Tn and found it so low cost I was jaded and suspected they are digging a deep hole some where but could not find it if its not in the qualify of their public education compared to here in DFW.

[Snowpacked]

They get the money regardless of how you derive the revenue. I do wish taxes were primarily consumption based.

[Taynxtlvl]

Originally Posted by Teacher Terry

Nevada has low property taxes and no state income tax.

And less jobs. It's a whole situation. But it could work for remote workers.

[Taynxtlvl]

Originally Posted by calgirlinnc

We moved here from NC and we are getting killed on our taxes here. With the new law limiting property tax deductions at $10K, it was a bad year.

There are other expenses here that are more expensive than NC, such as sales tax, car registration, toll roads, and water. Homeowner's insurance and car insurance are far more expensive here compared to NC.

About the only upside, if it matters to you, is that the public schools are so much better here. We had our daughter in private school in NC because of the public schools. Here we don't have to do that.

Also electricity is cheaper here.

ughhh Duke energy is horrid. Also, remember there is not car tax year after year in Texas unlike NC so it aint all bad.