Do Retired Texas move out of state due to high property taxes? (Dallas: sales, apartment)

[eagle318]

My husband and I are only a few months away from retirement thanks to
a very poor job market here in FL and him losing his job of 30 years due to a reorganization. I am researching other areas to live, and hopefully where
there are jobs available.
I am stunned by Texas' extremely high property taxes. A house costing
$500,000 at 3% taxes would cost $15,000. a year. I can't imagine coming up with that much money for taxes every year during retirement. Does Texas
give a substantial discount to those over 65? If not, do many Texans leave
the state during retirement for this reason? If so, to what state do they
choose to relocate?
We have no state income taxes in Florida, and yet our property taxes
are much more reasonable.
Thanks for your insider's information.

[dj04]

You are right about the high property taxes here. But just understand that a $300.00 house here is a $500.00 elsewhere. So you are paying a higher tax percentage on a cheaper house. Other things that should be noted about Texas versus Florida is the Home insurance should be much cheaper but the electricity will most likely be higher.

[WillysB]

Additionally, Texas has a sales tax but does NOT have an income tax. If I had purchased that 500k home ten or twenty years ago and sold it... well, last year, I'd have made a killing. Not sure it would have been a really wise move to pay that much for a home that close to retirement. Of course, if I had purchased it twenty years ago it should be paid for today (unless of course, I had a Barney Frank loan). And that $15k in taxes would be cheaper than a senior's resort living.

Not many people leave Texas for retirement. Contrary, many move here for a lower cost of living.

[momof2dfw]

Yes, people over the age of 65 get ANOTHER tax exemption as well as the Homestead Exemption we all get if it is our primary residence. There are other exemptions as well: agriculture, disability, etc. The Homestead Exemption rates vary by districts though. If you happen to want to live in a rural area vs a city then you will not pay taxes to the city if you don't reside w/in the city limits. You will still pay taxes to the county and the school district though.

Also, it is not a flat 3%. That is probably the highest tax rate one could find and so you just avoid THOSE areas. You also can't say that ANY and EVERY house that is valued at $500K will pay $15K annually. There are other factors that come into play. Even if two houses side by side were both valued at $500K they may not pay the same in taxes. The condition of the improvements (house), desirability of lot location (neighbor could be a golf course and the other not), square footage, amenities, etc. ALL play a part in the rating system which none of us can REALLY explain. My own house that values right around $500K in a desirable location, pool, etc I don't pay $15K in taxes. Last year it was only $12K (hey, I'll take that $3K myself ).

You also don't have to spend $500K on a house here. Depending on WHERE you buy and what your looking for you can get by on 1/2 that amount and be in a nice desirable area in a nice house. But, if you want to be in the VERY DESIRABLE areas that $500K won't touch a garage apartment. Just depends on what your looking for.

And no, most people do not move out of Texas when they retire. Why? There houses are paid for and their family is close by.

[Cathy4017]

Originally Posted by eagle318

My husband and I are only a few months away from retirement thanks to
a very poor job market here in FL and him losing his job of 30 years due to a reorganization. I am researching other areas to live, and hopefully where
there are jobs available.
I am stunned by Texas' extremely high property taxes. A house costing
$500,000 at 3% taxes would cost $15,000. a year. I can't imagine coming up with that much money for taxes every year during retirement. Does Texas
give a substantial discount to those over 65? If not, do many Texans leave
the state during retirement for this reason? If so, to what state do they
choose to relocate?
We have no state income taxes in Florida, and yet our property taxes
are much more reasonable.
Thanks for your insider's information.

I am one retiree that moved out of state to New Mexico for several reasons, very hot weather and no mountains other than the far west among them.

I love El Paso, and wanted to move there so I could stay in TX, but after taking one look at their property taxes, I said "No, thanks!" Texas is high in general, but EP is totally outrageous, as is the Austin area. The other area in TX I had considered was Alpine, but its property taxes are also extremely high, relatively speaking.

My property taxes in NM went down (on a home that has a valuation nearly twice that of my residence in TX, and no homestead exemption yet), and my homeowner's insurance rate was cut in half. I had the same coverage, and used the same company.

BUT...as the other poster said, in most areas, RE remains very reasonably priced in comparison to other states, even poor NM. You certainly do not have to pay anywhere near $500K to get a very nice home in a nice area.

[eagle318]

Florida has a sales tax too, and high homeowners insurance if you can get it. I am tired of the hurricanes here in FL.
It's interesting that the cost of houses are probably much cheaper in TX. I am glad to hear that there is a discount for those over 65. I still do not like the idea of paying those extremely high property taxes every year during retirement.

[killer2021]

Does a retired old person really need a 500k home?

Here is what 500k gets you in Dallas, tx







Grandma is going to be really enthusiastic cleaning the place.

[latetotheparty]

if grandma is buying THIS house, i'm guessing she can pay someone to clean it for her......

[1979]

Originally Posted by momof2dfw

Also, it is not a flat 3%. That is probably the highest tax rate one could find and so you just avoid THOSE areas.

In El Paso, everyone who purchases a home has to pay 3% sales tax on the price of that home.

This home killer2021 displayed for 500K in Dallas, made of stone, with hardwoods might go for even more than 500K in EP, despite Dallas having a more robust economy. I looked at several homes off Thunderbird in '07 that were priced between 400K-750K that were not this nice. From what I've witnessed, hardwoods are rare in EP, even in nicer homes, and a home made of stone even rarer.

[Steel Man]

Originally Posted by eagle318

Florida has a sales tax too, and high homeowners insurance if you can get it. I am tired of the hurricanes here in FL.
It's interesting that the cost of houses are probably much cheaper in TX. I am glad to hear that there is a discount for those over 65. I still do not like the idea of paying those extremely high property taxes every year during retirement.

The Over 65 exemption is not a discount. What it does is freeze your "assessed" value of your home (you have to live in it too) for most of the taxing authorities. Some of the smaller ones do not abide by this, but their amount is not much. The school district is by far the largest portion of your property tax and most school districts abide by this freeze.

You can buy a nice home for $250K and pay anywhere from $5K - $7.5K in property taxes (2-3%), depending on where you live. Before you buy, locate the home on the local property tax roles to see how much is currently being paid. Don't forget, if you itemize on your federal income tax, you can deduct property taxes.