Are new home owners paying these high property taxes? (Dallas: for sale, renting)

[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.

[AlecZTexan]

The property tax in Grapevine, Southlake, TC, Colleyville etc is ~2.5%, which is at the middle point of taxes in DFW cities. The city of Dallas, has a higher tax rate to ~2.8%. Plano ~2.1%, which is lower. To calculate property tax, the homestead exemption can be subtracted from the appraised value. Yes, it's roughly $10k tax for a $500k house.

[Teacher Terry]

Nevada has low property taxes and no state income tax.

[bigbear63]

Simply stated, yes.

I live in Dallas and see tax rates a tick higher than the example shown above but close.
Out of curiosity, I pulled up a home in Colleyville that's for sale right now at $699,900. Then I pulled up that homeowner's taxes: $13,389.51 on an appraised value of $670,515.
Scaling back the home value to $500K would bring taxes right about $10,000.

And...the other issue going around here is the rapid re-evaluation of property values. Mine have gone up 50% in 5yrs. My brothers went up 100% in the same time yet his home has had zero work done but it's getting surrounded by McMansions so the city has driven the value up on his place as well.
There is no stopping rising tax values here. There are homestead deductions and some senior related deductions but don't expect taxes to stop increasing harshly.

[Treasurevalley92]

Originally Posted by Teacher Terry

Nevada has low property taxes and no state income tax.

Navada is dope. They also have no state mandated bar or liquor store closing times and legal pot.

A true freedom lovers paradise.

[wheelsup]

Originally Posted by bigbear63

Simply stated, yes.

I live in Dallas and see tax rates a tick higher than the example shown above but close.
Out of curiosity, I pulled up a home in Colleyville that's for sale right now at $699,900. Then I pulled up that homeowner's taxes: $13,389.51 on an appraised value of $670,515.
Scaling back the home value to $500K would bring taxes right about $10,000.

And...the other issue going around here is the rapid re-evaluation of property values. Mine have gone up 50% in 5yrs. My brothers went up 100% in the same time yet his home has had zero work done but it's getting surrounded by McMansions so the city has driven the value up on his place as well.
There is no stopping rising tax values here. There are homestead deductions and some senior related deductions but don't expect taxes to stop increasing harshly.

That's crazy and just unfair, the cities have reaped insane amounts of revenue generation from this. In Dallas I'd be paying ~$1k a month just in property taxes...you will never own your home at that rate, the government does and you are just renting it to them.

We also looked at Arlington but saw similar large tax bills.

[wheelsup]

Originally Posted by Teacher Terry

Nevada has low property taxes and no state income tax.

I had not considered Nevada/Vegas. Looking into it now you are right. Very low property taxes and no income tax, and located just a few hours from LA. Interesting.

[calgirlinnc]

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.

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.

[Stelletti]

When we moved here we didn't even look at property taxes and consider them. Everyone kept toting the NO INCOME TAX thing. It has not even come close to what we lost in paying property tax. I really can't believe Texans have allowed this for years. When are tax is driven by something that is arbitrary like a property value that just don't make any sense to me. At least with an income tax you have a fixed percentage and can budget that.

[Angie682]

Originally Posted by Stelletti

When we moved here we didn't even look at property taxes and consider them. Everyone kept toting the NO INCOME TAX thing. It has not even come close to what we lost in paying property tax. I really can't believe Texans have allowed this for years. When are tax is driven by something that is arbitrary like a property value that just don't make any sense to me. At least with an income tax you have a fixed percentage and can budget that.

It's really not that great unless you are a high earner or are coming from a state with higher property tax and income taxes.

If you have an average income there are lots of other states you would be much better off living in than Texas.