Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
How many states have a property tax? In Oregon, the state does not levy or collect a property tax. All property taxes are local, so they can vary by a factor of 5 depending on your city, county, school district, etc. I pay $1600/year in property taxes. If my home was in Portland I would pay $6,000 a year.
It's not just the rate, people. I moved from a high property tax state (TX) to a low one (LA). What I learned:
When the property tax is low, the housing prices are very high....it all has to do with what the average person can afford, with house price + property tax.
My house in La. cost about $20k or $30k more than in a similar type smallish city in TX.
The property taxes, though for a similarly priced house would be about $1,200 more in TX. BUT to get the same kind of house, I'd have to pay a lot more...making the property tax almost the same.
AND...the sales taxes are the highest in the nation. (Sales taxes disproportionately affect those with lower incomes.)
AND...homeowner's ins. in much of La. quite high because much of La. is a natural disaster zone.
AND...La has a state income tax (which is WHY the property tax is lower...and a state income tax disproportionately affects those with lower incomes)
HO insurance is not deductible on the federal tax return.
You have to choose whether to deduct sales taxes or property taxes, on your federal return.
So, the state of La. has made a decision to spread its taxing system among different types of taxes, and to focus in on affecting those with lower incomes more than those with higher incomes (possibly because La. has a LOT of lower income residents).
To sum up, it might be best to check on these things:
1. House prices
2. Sales taxes (they change county to county)
3. Homeowner's insurance cost (and whether there's competition)
4. State income tax
5. How often does it re-appraise and/or raise the property tax rate? Every year? Every 3 years?
Last but not least:
5. Check on what the property tax benefit to seniors is. Do they freeze the home value? Or just give you an additional exemption? (This is where La. does well for seniors: it freezes the home value at age 65. Where I lived in TX, you got an add'l exemption, but your home value AND rate cont'd to climb, possibly meaning that eventually you'd have to sell.)
For me, a decent property tax, with no state income tax, average sales tax rate, average housing costs, and freezing the value at age 65...would be ideal, if I could find that. I'd prefer a higher property tax than a higher sales tax, for the federal deduction. But there's a point at which high is too high.
It's not just the rate, people. I moved from a high property tax state (TX) to a low one (LA). What I learned:
When the property tax is low, the housing prices are very high....it all has to do with what the average person can afford, with house price + property tax.
My house in La. cost about $20k or $30k more than in a similar type smallish city in TX.
The property taxes, though for a similarly priced house would be about $1,200 more in TX. BUT to get the same kind of house, I'd have to pay a lot more...making the property tax almost the same.
AND...the sales taxes are the highest in the nation. (Sales taxes disproportionately affect those with lower incomes.)
AND...homeowner's ins. in much of La. quite high because much of La. is a natural disaster zone.
AND...La has a state income tax (which is WHY the property tax is lower...and a state income tax disproportionately affects those with lower incomes)
HO insurance is not deductible on the federal tax return.
You have to choose whether to deduct sales taxes or property taxes, on your federal return.
So, the state of La. has made a decision to spread its taxing system among different types of taxes, and to focus in on affecting those with lower incomes more than those with higher incomes (possibly because La. has a LOT of lower income residents).
To sum up, it might be best to check on these things:
1. House prices
2. Sales taxes (they change county to county)
3. Homeowner's insurance cost (and whether there's competition)
4. State income tax
5. How often does it re-appraise and/or raise the property tax rate? Every year? Every 3 years?
Last but not least:
5. Check on what the property tax benefit to seniors is. Do they freeze the home value? Or just give you an additional exemption? (This is where La. does well for seniors: it freezes the home value at age 65. Where I lived in TX, you got an add'l exemption, but your home value AND rate cont'd to climb, possibly meaning that eventually you'd have to sell.)
For me, a decent property tax, with no state income tax, average sales tax rate, average housing costs, and freezing the value at age 65...would be ideal, if I could find that. I'd prefer a higher property tax than a higher sales tax, for the federal deduction. But there's a point at which high is too high.
Great post. I was thinking while reading it that it didn't take into account being reappraised out of your home. CA has Prop 13, which freezes the value of your home the moment you buy it. Don't need to wait until you're 65.
I've always said that every state finds a way to pay for amenities with taxes. If it ain't one tax, it's another. But, there are definitely going to be taxes of some kind if you have any decent amenities (meaning schools, decent roads, police, fire fighters, street lights, sidewalks, parks, on and on).
From what I have learned in my retirement research, it is not the state but the TOWN. When we were looking at New Hampshire, for example, rates varied from less than 10 to over 30, and it seems to be that way in Wisconsin, too, where we are currently looking. That is a HUGE difference when one is living on a limited budget.
When considering a state to retire to, property taxes are not the only concern. You have to also look at other taxes. If in retirement you are still pulling in a good income from investments and other sources, then looking at income tax is important. Next you need to look at sales tax, fees and other ways the state gets your money. We moved from South Carolina to Florida knowing the property taxes were higher but also knowing that there is no income tax, and as we are bringing in the same amount of money as when we worked plus not having to pay other expenses it is a wash.
How many states have a property tax? In Oregon, the state does not levy or collect a property tax. All property taxes are local, so they can vary by a factor of 5 depending on your city, county, school district, etc. I pay $1600/year in property taxes. If my home was in Portland I would pay $6,000 a year.
I agree.
There can be huge differences within a state.
Here in Maine 'organized' towns levy their own property taxes, while the majority of the towns do not. They let the state take care of it, and as a result taxes are much lower.
Quote:
Originally Posted by bpollen
...
To sum up, it might be best to check on these things:
1. House prices
2. Sales taxes (they change county to county)
3. Homeowner's insurance cost (and whether there's competition)
4. State income tax
5. How often does it re-appraise and/or raise the property tax rate? Every year? Every 3 years?
Last but not least:
5. Check on what the property tax benefit to seniors is. Do they freeze the home value? Or just give you an additional exemption? (This is where La. does well for seniors: it freezes the home value at age 65. Where I lived in TX, you got an add'l exemption, but your home value AND rate cont'd to climb, possibly meaning that eventually you'd have to sell.)
For me, a decent property tax, with no state income tax, average sales tax rate, average housing costs, and freezing the value at age 65...would be ideal, if I could find that. I'd prefer a higher property tax than a higher sales tax, for the federal deduction. But there's a point at which high is too high.
You bring up some good points
In my area home prices are low. Our home is 2400 sq ft and it is appraised at $90,000. Property taxes on my home are $600/year.
We have a 'homestead' exemption which lowers the assessed value by $20,000.
We have an income tax, though my pension is exempted from taxes.
Over 92% of this state is forest, and most of my land is considered forested. As 'treegrowth' its assessed value is fixed. We have 150 acres of forest land, the taxes on our land is $157.50/year.
Last but not least:
5. Check on what the property tax benefit to seniors is. Do they freeze the home value? Or just give you an additional exemption? (This is where La. does well for seniors: it freezes the home value at age 65. Where I lived in TX, you got an add'l exemption, but your home value AND rate cont'd to climb, possibly meaning that eventually you'd have to sell.)
Many local jurisdictions in Texas do indeed cap property taxes (but not appraisals) for seniors, in addition to the senior assessment exemptions. IOW, the seniors may not pay increased tax after applying for the Over-65 exemption, and getting the additional assessment reduction off of their appraisal, which sets the "cap" at that point. So as the years go by and the appraisal increases year-by-year, the senior homeowner keeps paying what they paid at age 65.
The difference between what a senior pays in annual property taxes, versus what an under-65 homeowner would pay for the same property, can be substantial, particularly when appraisals and/or tax rates increase, as the senior homeowner ages.
Are we forgetting the "quality of life"? I'd weigh that a lot more heavily than property taxes.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
