Question on State income tax (Denver, Boulder: sales, apartments, rent) - Colorado (CO) - City-Data Forum

allforone515 · 10-19-2008, 04:30 PM

Hello all,

I am about to move from San Antonio to Denver after I received a job offer from Denver.

The new job will pay me about the same.

There is a state income tax(4.5%?) in CO but there is no state income tax in Texas.

I am always confused about why some states have state income tax while some state don't.

After the state tax, looks like my net income will be less than before.

I know the property tax is lower in CO than Texas, but I am renting apartments(also the housing is more expensive in CO than in Texas), so is there any other factor I should take into consideration so that my net income after tax will not decrease actually?

Thanks!

BarryK123 · 10-19-2008, 07:59 PM

Some states make their money with income taxes, others do it in other ways, like higher sales taxes (some states don't tax clothing, for example), property taxes, car registration fees, etc. It's all a game, but the bottom line is the same - money out of your pocket.

allforone515 · 10-19-2008, 08:37 PM

Quote:

Originally Posted by BarryK123

Some states make their money with income taxes, others do it in other ways, like higher sales taxes (some states don't tax clothing, for example), property taxes, car registration fees, etc. It's all a game, but the bottom line is the same - money out of your pocket.

Hello Barry,

Thanks for the information.

Property tax really does not save any money for me as I will be renting.

Car registration fee, sales taxes those look not be some big amount which will count,

any other ideas? same money my net income will looks to be 5k less in Denver. So will thoese states with income state tax attract workforce to relocate to there?

TexaCo Mom · 10-19-2008, 08:57 PM

Having moved from San Antonio to the metro Denver area eight years ago it will appear that EVERYTHING is more expensive here. Property taxes may be lower here, but the homes/properties themselves cost twice what they are in S.A. And aside from paying state income tax (which as you know we don't pay in TX) you pay sales tax on groceries here! Yep - all your groceries not just your toiletries and non-essential foods, but ALL groceries. It certainly can add to your food bill. I also find car registration more costly here than I remember paying in TX. Personally, I wouldn't make the move unless you have the opportunity to make more than you currently make in S.A., but that's just my opinion.

allforone515 · 10-19-2008, 09:06 PM

Quote:

Originally Posted by TexaCo Mom

Having moved from San Antonio to the metro Denver area eight years ago it will appear that EVERYTHING is more expensive here. Property taxes may be lower here, but the homes/properties themselves cost twice what they are in S.A. And aside from paying state income tax (which as you know we don't pay in TX) you pay sales tax on groceries here! Yep - all your groceries not just your toiletries and non-essential foods, but ALL groceries. It certainly can add to your food bill. I also find car registration more costly here than I remember paying in TX. Personally, I wouldn't make the move unless you have the opportunity to make more than you currently make in S.A., but that's just my opinion.

Hello, Texaco Mom,

Thanks for the information.

I am very happy to find someone who has relacated to Denver from San Antonio! Off the original topic, can you give your opinion on other aspects regarding the difference between Dever and San Antonio? Weather, traffice, and etc.

Thanks!

Dorthy · 10-19-2008, 09:07 PM

I lived in San Antonio just prior to moving to Denver and everything is more expensive here. For what we sold our nice house in Texas for we were able to buy a small fixer upper condo here. The first few times at the grocery store were shocking, food is much more expensive even pre-tax. If you really like Denver and want to leave San Antonio then go for it but you will end up with less money in your pocket living here that is for sure.

TexaCo Mom · 10-20-2008, 06:27 AM

Quote:

Originally Posted by allforone515

Hello, Texaco Mom,

Thanks for the information.

I am very happy to find someone who has relacated to Denver from San Antonio! Off the original topic, can you give your opinion on other aspects regarding the difference between Dever and San Antonio? Weather, traffice, and etc.

Thanks!

Being that I don't live in Denver-proper, I really don't have to deal much with that traffic. I'm about 20 miles NE of downtown Denver. I do make a few trips to Boulder each month to visit with my son at CU and depending on the time of day traffic can be a real pain. Again, nothing like what you find in S.A. Also, S.A. doesn't have a real winter compared to Denver. In general you do adjust with the exception of the occasional snow dumps we receive here. The last time was in December '06. I thought it would never stop! I do enjoy the fall. Summer can be excruciatingly hot, but of course it's a "dry heat", LOL. I don't miss the humidity of S.A. or the bugs. Neither of much is found here. And as Yodi stated, groceries in general (pre-tax) are much more expensive here. When we made the move it involved a $20K increase in my husband's salary. Otherwise, we'd most likely still be living in Texas.

allforone515 · 10-20-2008, 08:37 PM

Thank you, Texaco Mom!

jazzlover · 10-20-2008, 08:57 PM

Some wrong information has been posted. In Colorado, food is EXEMPT from STATE sales tax, but may be taxable by county or municipality, depending on location. The STATE sales tax is 2.9%, BUT counties, municipalities, and other taxing entities can add additional taxes to that. In many areas, that pushes the total sales tax to over 8%. Find local sales tax rates here: http://www.taxview.state.co.us/Query...spx?selected=1

State income tax info here:

Tax Information Index (Table of Contents)

As noted elsewhere, Colorado has one of the lowest effective property tax rates on residential property in the US. That is offset by relatively high state and local aggregate sales taxes, and high gasoline taxes. Colorado's income tax rates, non-residential property tax rates, and vehicle registration fees are middling compared to other states. Generally speaking, general living expenses in Colorado are average or higher than average compared to other states, and wages are a little above average to somewhat below average compared to other states--considerably below average away from the metropolitan areas.

wankel7 · 10-21-2008, 12:24 AM

Two words for you - Mountain Tax.

And being able to live here and go into the mountains and have the time of my life is beyond worth the extra expense of living here. Period.

I used to live in Laredo and am rather farmilar with that area. Yeah, the houses maybe cheap. But who cares? It is hotter than all hell in the summer time and you have no mountains and no snow. Yes, there is Hill Country and it is amazing and all. But the mountains here make it all worth it.

Now, if you don't like to play in the mountains I can see why this stuff would matter.

Since the income tax here is about 4.6% and you said it would cost you 5k a year you are obviously making over 100k. You can live a nice life here and even afford a nice house if you wanted to buy. Let alone rent some place.