Texans actually pay more in taxes than Californians do? (public schools, utilities)

[oil capital]

Originally Posted by blameyourself

Right now our taxes are over 13K on our Williamson County home and roughly 6K on our California home.

Right now our taxes on our Texas home are $5,500. Our taxes on our California home are $10,000+

[blameyourself]

Originally Posted by oil capital

Right now our taxes on our Texas home are $5,500. Our taxes on our California home are $10,000+

Sorry to hear that.

[blameyourself]

Originally Posted by EDS_

Thank you.


For reasons I don't quite understand people fixate on TX property taxes.

Possibly because it's going to force people out of communities they grew up in. Sorry you can't realize that.

[Need4Camaro]

I'll just say Property Tax isn't what I would worry about in Cali. The value of the property will be a much bigger obstacle than the property tax. The tax I would worry about in Cali is the income tax.

[blameyourself]

Originally Posted by Need4Camaro

I'll just say Property Tax isn't what I would worry about in Cali. The value of the property will be a much bigger obstacle than the property tax. The tax I would worry about in Cali is the income tax.

Agree and most long term residents don't as they know they won't have an excessive burden to deal with at retirement like Texas.

A question for you Camaro. How much do you think a similar job in your field pays in Texas vs California?

[Need4Camaro]

Originally Posted by blameyourself

Agree and most long term residents don't as they know they won't have an excessive burden to deal with at retirement like Texas.

A question for you Camaro. How much do you think a similar job in your field pays in Texas vs California?

Hmmm ... Similar roles I'd say there isn't a big difference in pay. For example I know someone who became an AWS engineer in San Diego starting out @ $130k ... Same job in Austin would probably pay somewhere between $100 - $120k .. with CoL adjustments accounted for, the difference isn't enough to offset the massive CoL gap between the two states where in Cali, you can't buy a house anywhere in San Diego @ $130k unless its a shoebox.. ..in Austin, well.. ..it would be tough in this market and you wouldn't be able to live central but you could probably for a smaller home in Round Rock, Leander, Georgetown, Hutto, ect assuming you have no debts or liabilities.

Where I think California shines is the fact that it has more STEM related tech roles (Bay Area) or Biotech (San Diego) that you wont find as plentiful in TX.. ..so there are more opportunities for someone who is highly skilled to make $300k+ where as in TX you'll get a good amount of software engineer roles which pay anywhere between $100 - $200k at the high end.. ..but much of our tech is still operations based.. ..so California has higher tier tech roles that by nature will pay more due to supply levels of talent not being as plentiful to fulfill those roles... So contrary to popular belief, the true silicon valley has not moved to Texas, we are just a very large satellite in terms of tech. The roles of STEM is still largely happening in California.

[blameyourself]

Originally Posted by Need4Camaro

Hmmm ... Similar roles I'd say there isn't a big difference in pay. For example I know someone who became an AWS engineer in San Diego starting out @ $130k ... Same job in Austin would probably pay somewhere between $100 - $120k .. with CoL adjustments accounted for, the difference isn't enough to offset the massive CoL gap between the two states where in Cali, you can't buy a house anywhere in San Diego @ $130k unless its a shoebox.. ..in Austin, well.. ..it would be tough in this market and you wouldn't be able to live central but you could probably for a smaller home in Round Rock, Leander, Georgetown, Hutto, ect assuming you have no debts or liabilities.

Where I think California shines is the fact that it has more STEM related tech roles and tech roles (Bay Area) or Biotech (San Diego) that you wont find as plentiful in TX so there are more opportunities for someone who is highly skilled to make $300k+ where as in TX you'll get a good amount of software engineer roles which pay anywhere between $100 - $200k at the high end.. ..but much of our tech is still operations based.. ..so California has higher tier tech roles that by nature will pay more due to supply levels of talent not being as plentiful to fulfill those roles.

OK, and that seems to be what most of the salary calculators are going with. I guess the point is what is the real net difference. If we say taxable income in CA is $100k then we can assume the Austin area is about $85k (15% haircut). The tax in California on that $100k (if my calculations are correct) is about $6100. The property tax (using my example) is $7k more in Texas. I'm not seeing much difference. Of course I fully admit you won't live the same because so many of the other expenses are higher in CA, but just looking at straight up numbers, there doesn't seem to be much difference and the upside would appear better in CA considering most homeowners will be looking at 10% jumps per year in property taxes in all likelihood over at least the next 5 years (unless they're entering retirement).

[Need4Camaro]

Originally Posted by blameyourself

OK, and that seems to be what most of the salary calculators are going with. I guess the point is what is the real net difference. If we say taxable income in CA is $100k then we can assume the Austin area is about $85k (15% haircut). The tax in California on that $100k (if my calculations are correct) is about $6100. The property tax (using my example) is $7k more in Texas. I'm not seeing much difference. Of course I fully admit you won't live the same because so many of the other expenses are higher in CA, but just looking at straight up numbers, there doesn't seem to be much difference and the upside would appear better in CA considering most homeowners will be looking at 10% jumps per year in property taxes in all likelihood over at least the next 5 years (unless they're entering retirement).

In terms of just taxes I agree, problem is that $100k salary is still renting territory in most of California that is even decently desirable. In Texas, well.. ..you atleast get the opportunity to pay Property Tax

In the end you're right, you pay the same, it's just that you are getting more assets in Texas, and more importantly, equity.. ..the trade off is.. ..do you want home ownership and equity, or do you want access to cool beaches and perfect year round weather.

The other problem is, career progression in California leads to exponential more taxation.. ..although technically appreciation does the same thing in Texas.

[blameyourself]

Originally Posted by Need4Camaro

In terms of just taxes I agree, problem is that $100k salary is still renting territory in most of California that is even decently desirable. In Texas, well.. ..you atleast get the opportunity to pay Property Tax

In the end you're right, you pay the same, it's just that you are getting more assets in Texas, and more importantly, equity.. ..the trade off is.. ..do you want home ownership and equity, or do you want access to cool beaches and perfect year round weather.

The other problem is, career progression in California leads to exponential more taxation.. ..although technically appreciation does the same thing in Texas.

Agree (hence the reason I bolded it in my response)

[Need4Camaro]

Now for me particularly, I have doubled and tripled up on jobs and have had a salary that has ranged between $100k at the lowest, all the way up to $400k at the highest between the last 4 years. That is how I paid my surgeries out of pocket. I purposefully went for a smaller home (I'm single and no dependents so this doesn't harm me in any way) which limits the amount of property tax I pay .. .. so without a state income tax, my taxation is very fair compared to how much I am earning. If I upsized my house however things would change. I intend to eventually turn my house into a rental then upsize though. This is why for me, I like property tax better. If I had hit $400k in California I would have been cauterized in taxation.