Property Taxes??? (Knoxville: sales, rent, insurance)

[donsabi]

I thought that TN had lower property taxes compared to NC. I priced a house in Knoxville that is offered at $130,000 and the city and county taxes came to $1700 annually. I had a similarly priced house in Hickory NC and the annual taxes were about $1000. If I lived just outside the limits of Hickory the property taxes would have dropped to $500. Comments appreciated, thanks.

[Bones]

Originally Posted by donsabi

I thought that TN had lower property taxes compared to NC. I priced a house in Knoxville that is offered at $130,000 and the city and county taxes came to $1700 annually. I had a similarly priced house in Hickory NC and the annual taxes were about $1000. If I lived just outside the limits of Hickory the property taxes would have dropped to $500. Comments appreciated, thanks.

I really don't know what comments y'all are looking for....here is a list by county tax rates....

TN Comptroller of the Treasury - Division of Property Assessments - 2009 Property Tax Rates (http://www.comptroller1.state.tn.us/PAnew/LR.asp?W=09 - broken link)

[anothertntony]

Originally Posted by donsabi

I thought that TN had lower property taxes compared to NC.

It generally helps to look at the total tax picture when comparing cities / states. On average, TN has a lower local and state tax burden than NC. Sales tax is higher in TN, property taxes may be higher (depending on the city), but there are no state income taxes.

How this all impacts your tax bill depends on your income and spending habits. If you have a fairly high income and save money in non tax advantaged accounts, then TN will likely be very favorable. You won't pay any state / local tax on savings (although you may be taxed on dividends and capital gains) and your property taxes will be way less than state taxes in NC. Also, many expenditures (e.g., rent or mortgage payments) will not be subject to sales tax, so all of that money is effectively untaxed in TN. The state income taxes in NC can be significant -- taxable income over $60k puts you into the 7.75% tax bracket. Ouch!

[JMT]

Originally Posted by donsabi

I thought that TN had lower property taxes compared to NC. I priced a house in Knoxville that is offered at $130,000 and the city and county taxes came to $1700 annually. I had a similarly priced house in Hickory NC and the annual taxes were about $1000. If I lived just outside the limits of Hickory the property taxes would have dropped to $500. Comments appreciated, thanks.

You're comparing small-town NC to big-city TN. That's not a very fair comparison. A $130k house in "rural" Knox County would have property taxes of around $767.

In 2008 (the latest year I can find) NC and TN had similar property taxes: NC was 35th in the nation, TN was 38th. In 2008, the average North Carolinian paid 2.01% of his income in property taxes; the average Tennessean paid 1.72% of his income in property taxes. The average North Carolina home was taxed at .75% of its value, the average Tennessee home was taxed at .67% of its value.

When all taxes are taken into consideration Tennessee has a lower tax burden than North Carolina: NC has the 20th-highest tax burden in the nation, Tennessee is 44th.

The Tax Foundation - State and Local Tax Burdens: All Years, One State, 1977-2008

[hiknapster]

And to go even further, you are paying about double to live in the city of Knoxville and half to live in the county. However, there are perks that come with the higher taxes. Depending on how much you pay for your house, you can come out ahead or at least even because city dwellers get free trash pick up along with free refuse and bulk pick up, lower insurance rates and emergency services are free. In most of the county you have to subscribe to Rural Metro.

[JMT]

Originally Posted by hiknapster

And to go even further, you are paying about double to live in the city of Knoxville and half to live in the county. However, there are perks that come with the higher taxes. Depending on how much you pay for your house, you can come out ahead or at least even because city dwellers get free trash pick up along with free refuse and bulk pick up, lower insurance rates and emergency services are free. In most of the county you have to subscribe to Rural Metro.

That's very true. When I moved from rural Knox County into the city of Knoxville my property taxes doubled but I still came out even because of lower home insurance premiums, free garbage pickup (which includes large brush, old appliances, etc.), and not having to subscribe to Rural Metro. And with being much closer to work, I'm probably coming out ahead because I'm not spending nearly as much on gasoline as I used to, and that includes coming home for lunch almost every day.

[donald cherry]

what is rural metro???

[JMT]

Originally Posted by donald cherry

what is rural metro???

RuralMetro.com Over 50 Years of Serving Others

[donald cherry]

thanks JMT ,so if i live out of the city ,i have to pay for fire and medical services,is this a yearly fee.or do you pay when you use them??

[JMT]

Originally Posted by donald cherry

thanks JMT ,so if i live out of the city ,i have to pay for fire and medical services,is this a yearly fee.or do you pay when you use them??

It's a yearly fee.