Why are Taxes so high (Pittsburgh, Reading: best neighborhoods, renting, house)

[Stephanie P]

Originally Posted by drshang

The thing is that Pittsburgh has high property taxes, a very high city income tax, average state taxes and a 7% sales tax. It's still very much an inexpensive city, but I think it's pretty thin to argue that the tax rate is low. States like Texas that have ~3% property taxes have no income tax and no city income tax. Usually places have high property taxes OR high income taxes, not both. I would characterize Pittsburgh as having below average cost of living, average wages and above average taxes.

Okay, that's the thing. Texas has a state sales tax of 6.25% (in Houston it is 8.25%.) Again, we do have high property taxes, but no state income tax. Groceries are not taxed, but clothing is.
My husband should expect to get a pretty good raise if he gets that job, but with the state income tax, does it even out?
We are just wondering how people in the north pay their bills. Please don't get me wrong, I am very excited about the possible move, I am just wondering if we can afford it. We will have to pay at least 1 1/2 times the money for a home as we did here, with close to the same property taxes. I guess I am just a little worried.

[hempfield mania]

Stephanie,
I never owned when I lived in Texas but from what my co-workers said that did, it seems to equal out somewhat. I lived there for 2 years on the company dime so I was on easy St.

The Houston area, overall, was less expensive, all things considered but not overly so. For the Northeast/Mid Atlantic (if you can call Pittsburgh that), Pburgh is a bargain. If you don't live in Allegheny Co. and more importantly, downtown PGH, your tax burden will be significantly less. Washington, Butler and Westmoreland counties all have lower taxes and have areas within commuting distance of downtown. But, by paying less taxes, you will end up paying more in commuting costs, depending on where you settle down and where your husbands job is at. Living in Houston though, I know it took "an hour" to get just about anywhere, especially since we were way out in Kingwood and seemed to always be traveling to the coast or over near the Galleria to eat.

Why don't you like the area down there? I liked living in Houston and would move back if the right offer came up. Granted, we spent just about every weekend at the coast somewhere (we are beach lovers) or out in the hill country.

To the original OP, I don't know how your area compares to Sterling, VA but my brother lives there and unfortunately, bought right before the bubble burst. His house cost double mine and has 500 less sq. ft and no basement and he has had nothing but problems with it since he bought it. Depending on the area you look, I think you can get a decent, older (1980's or maybe a little newer) colonial in your SF range or bigger for 200k +/- 20k. May need some updating but it would definitely be livable.

[Stephanie P]

If he gets the job, the location would be Moon Township. We have not really crunched the numbers too much, we don't want to put the cart before the horse, so to speak.
Well, not to bash Houston too much, but....
humidity (my clothes are wet when I go out in the mornings)
heat (we have had the hottest summer on record this year)
bugs (more than I would want to count)
traffic (oh, the traffic)
ugly, flat, no zoning
Galveston - the water is brown, dirty, & stinky
Did I mention the unbearable heat & humidity - I can't take that anymore.

So, we are keeping our fingers crossed that we will be able to move this year.
Thanks so much for the info! Any advise is greatly appreciated!

[Pyranha]

Jayman.....where in Waldorf did you live? My wife and I just moved up here to Pittsburgh (Oakdale PA actually) from Waldorf in June. We lived in Dorchester, and while we loved all the amenities DC had to offer, the traffic was a nightmare that nether of us want to relive again.

-C

[sr1234]

Originally Posted by jayman1981

Good day to all me and the family are thinking about relocating. I just happened to discover the low cost of living out in the Midwest and Pittsburgh. However after checking on the property taxes, I was kinda floored.

Here is a warning to you that hasn't been mentioned - Allegheny County is going to be forced to reassess property taxes. So the property taxes will be increasing. Also, other counties will be doing the same to raise more money to keep up with government spending. In addition, the Democrats in Harrisburg can't cut back and there are budget issues. Trust me, the Ohio border is looking really attractive right now.

[Copanut]

Originally Posted by sr1234

Here is a warning to you that hasn't been mentioned - Allegheny County is going to be forced to reassess property taxes. So the property taxes will be increasing. .

Maybe not. You could make an argument that property values have been on the decline, so unless the local powers that be RAISE millage rates, your taxes may be reduced. But don't hold your breath. Politicians hate to lose revenue streams.

[Peterbilt379]

You still think Taxes are so high there? I mention this before, "you have it easy". Not so much of the gas prices in Pittsburgh or else where in Pennsylvania. Consider this, try living in Virginia Beach for 3 months to 1.5 years. I used to live in Pittsburgh (actually outside of Pittsburgh area) I would love to move back there right now, but don't have enough money yet. The only thing that is cheaper here is the gas prices. $2.45/gal at the moment. Beyond that, you have to pay double or triple on most taxes here. Try paying 7.5 % on food tax, 9.5 % on groceries, 21 % on housing (real states) close to 17 % on property tax, even there is property tax on vehicles. Which could range from $140 to $450 every 6 months. My recent property tax for my vehicle is $245.51.

Pennsylvania is alot cheaper on taxes. Trust me you haven't pay high taxes. You may think so, but consider knowing the rest of the states and compare their taxes and the taxes you are paying now. I can't be any Clearer.

[Copanut]

Not following. 7.5 on food, 9.5 on groceries, aren't they the same? Likewise with housing and property tax.

[Peterbilt379]

Actually no, I meant 7.5% on food tax from fast food resturuants to sit in resturuants. 9.5% on groceries tax from retail and general stores, and other groceries stores. Housing and property tax is a big difference, meaning by, housing being of course. Real Estates (at 21% rate) and property, well, being the utilities, and the lawn. Also, property tax on vehicles is separated from opposing the home property tax. It is more complicated here in Virginia.

[lennox66]

Originally Posted by Peterbilt379

You still think Taxes are so high there? I mention this before, "you have it easy". Not so much of the gas prices in Pittsburgh or else where in Pennsylvania. Consider this, try living in Virginia Beach for 3 months to 1.5 years. I used to live in Pittsburgh (actually outside of Pittsburgh area) I would love to move back there right now, but don't have enough money yet. The only thing that is cheaper here is the gas prices. $2.45/gal at the moment. Beyond that, you have to pay double or triple on most taxes here. Try paying 7.5 % on food tax, 9.5 % on groceries, 21 % on housing (real states) close to 17 % on property tax, even there is property tax on vehicles. Which could range from $140 to $450 every 6 months. My recent property tax for my vehicle is $245.51.

Pennsylvania is alot cheaper on taxes. Trust me you haven't pay high taxes. You may think so, but consider knowing the rest of the states and compare their taxes and the taxes you are paying now. I can't be any Clearer.

It all depends what you mean by high taxes.High property taxes are the worst kind of high taxes to have. You have no control over them and you are forced to pay and pay and pay. When you are young, you don't care about taxes. As you get to mid career and your income peaks, then income taxes are the main concern. Wait till you get near retirement and you start thinking about living on lower income. Your income and income taxes taxes go down, but you're property taxes just keep going up and up. So high property taxes become the worst taxes by far. I'd love to move back to Pgh, but the property taxes are nothing short of obscene. I was thinking from moving back from a large city to Pgh because houses are so much cheaper. Then I discovered that a house that cost half as much would have double to property taxes. Yeah, property taxes in Pgh are 4 times higher. And I live in a very expensive city.

But as far the original question, the reason that property taxes are high in Pgh is simple. There are three main sources of tax - income, property and sales. Pgh has a middle level sales tax and despite what some people here have claimed, it has relatively low income tax, especially for middle class up. Pa is 3%. Look at any chart and see how many states have an upper end that is lower than that. Very few and none outside the south

People who try to compare Pennsylvania with Texas are misguided. Northeastern states with their denser population, older infrastructure and more powerful public unons all have very high taxes. Western states have almost no public transit, for example and far fewer services in general. They have also been growing and adding revenue as people head south. Also, don't forget that Texas has an addition major income source - oil revenue. Forget Texas and Florida, etc. They are a whole different ball game. Compare Pa. to other northeast and midwest states. Pa income taxes a very low. Even WV goes up to 6% on income tax.

That leaves only property taxes as a cash cow. Sure, Pennsylvania and Pgh in particular are run by somwhat correct governments, but that isn't the big factor. It's the low income taxes. If I'm not mistaken, it's even a Pa. law that schools cannot be supported by income taxes, anyway.