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"In other words, you will end up with a high tax bill no matter where you live if you choose to live in an expensive house".
All examples were based on the FMV of $300,000.00. Illinois was clearly and significantly more expensive than Texas (Cook vs Travis Counties). More than 16%.
Edit: Yes, you will pay higher taxes if you choose to live in an expensive house but "expensive" is relative. Regardless, you get more for your money in Austin,TX than Cook County, Ill.
I'm wondering if there are any laws that are impacting Wisconsin because my relatives there are paying property taxes closer to 3% of value but they haven't been long time property holders. So perhaps there is a big disparity for long time homeowners and newer ones due to increase capping laws. I saw a house for sale in Madison, WI that had 4% property taxes.
For example, I know in CA they have laws limiting the increase in property taxes which makes their property taxes look artificially low relative to what a new resident would pay.
My relative in San Fran has a house they paid about 150k for which is now on Zillow at 6-7million (must be nice to have an unobstructed view of the golden gate bridge eh?). Their property taxes are around 12k a year or <0.2% because they've lived in it since about the moon landing. Next owner will be paying more like 2%.
Not trying to argue or anything, clearly my experience is anecdotal and IL I can kinda believe but WI just seems crazy low so wondering if there is something going on there like I know about in CA.
Anyone getting a refund needs a new accountant. You are having too much tax taken out thereby giving the govt an interest free loan. I never have any taxes deducted. I wait for Uncle Sam to send me a bill.
Nope, I'm living only on pension and 401k investment income the last two years. By law they take out 20% off the top on distributions, which is WAY higher than my actual effective tax rate (married filing jointly) would allow if it was W2 income. I can't stop them doing this since they passed a law for that rate on 1099-r distributions, I can only wait until the following year to get a refund.
"In other words, you will end up with a high tax bill no matter where you live if you choose to live in an expensive house".
All examples were based on the FMV of $300,000.00. Illinois was clearly and significantly more expensive than Texas (Cook vs Travis Counties). More than 16%.
That's in line with the numbers Finn cited though. With TX at an average of 1.86 and IL at 2.32 that approximately 24% higher which is in the ballpark.
Now for a 300k home that would mean property taxes around 6k and 6.5k more or less.
As such, I don't think the issue here is as much about the percentages as it is the sad fact that 300k gets you a very nice home in some places and a shack by the freeway in others.
Nope, I'm living only on pension and 401k investment income the last two years. By law they take out 20% off the top on distributions, which is WAY higher than my actual effective tax rate (married filing jointly) would allow if it was W2 income. I can't stop them doing this since they passed a law for that rate on 1099-r distributions, I can only wait until the following year to get a refund.
Good point.
Lol....does your wife have that return earmarked by October of the previous year for something?
I get an annual bonus typically around the time taxes are due which is fairly substantial and it's typically "pre spent" by Christmas lol.
From reading the twitter feeds on this subject regarding the benefits of the Tax Reform Act, some people are obviously upset that Mr. Trump proclaimed that the average family would realize $4,000.00 in savings.
Indeed, recall also that the nations ultra-wealthy made it clear to the Republicans that if the tax bill did not pass, no more money for elections. The Republicans took notice.
That's in line with the numbers Finn cited though. With TX at an average of 1.86 and IL at 2.32 that approximately 24% higher which is in the ballpark.
Now for a 300k home that would mean property taxes around 6k and 6.5k more or less.
As such, I don't think the issue here is as much about the percentages as it is the sad fact that 300k gets you a very nice home in some places and a shack by the freeway in others.
His percentages are correct, but it's a significant difference when applying to amounts associated with the housing market.
And you're right. When you factor in the real estate one can acquire for their money, it appears Cook County residents are not in the most desirable position.
Its hilarious how people here brag about the "extra" 2K they got back. Meanwhile the deficit was 985 billion - IE more then the 2K most have been claiming here. So you didn't get extra back, you simply got a loan via the CC that eventually you will have to pay back. With interest. And under Trump the deficit has almost doubled since the last year of Obama.
I know that many individual investors read Michael Kitces blog and he is held in strong regard for his advice by not just individuals but financial advisors and professional groups
This is his latest blog entry
Nothing to do with property tax deductions—but how small businesses fund retirement accounts for their employees...
Doesn’t effect individual investors 401K decisions but certain provisions of the new tax law will have a significant influence on small business owners
I read enough to know that I am glad my husband’s S Corp is not funding his retirement account now—-he is retired and not taking a salary from it or making defined contributions
But other people HAVE set up their businesses—to take advantage of the former tax laws
The new law seems to have a big negative impact on existing plans
And just more proof that it was done to benefit specific types of businesses—not a wide swath of small business/entrepreneurs which really make up most business owners in America
The people who might have thought Trump and the GOP were going to help them put more money in their pockets instead of into their tax bills...
"In other words, you will end up with a high tax bill no matter where you live if you choose to live in an expensive house".
All examples were based on the FMV of $300,000.00. Illinois was clearly and significantly more expensive than Texas (Cook vs Travis Counties). More than 16%.
Edit: Yes, you will pay higher taxes if you choose to live in an expensive house but "expensive" is relative. Regardless, you get more for your money in Austin,TX than Cook County, Ill.
I don't care whether or not your link disagrees with your examples and/or your spin. I only care if it agreed with what I said earlier, which it does.
You can buy a $10 million home in Florida, and guess what? Your property tax bill is going to be a whopper, as it would be pretty much anywhere because the house is so expensive.
A $700K townhouse in Las Olas area in Ft Lauderdale will cost you $11K in property taxes. High millage rate. Ouch!
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Next owner will be paying more like 2%.
