WA state ranks #1 worst in middle class taxes (for sale, real estate market)

[Gaylord_Focker]

Originally Posted by simply1

California is rated the best.

How is that possible?

[SusVelo]

Originally Posted by Gaylord_Focker

How is that possible?

I'm guessing the op didn't really think it through with his source.

[Seacove]

Originally Posted by CrazyDonkey

That's for property tax rates. Our property values are much higher (#7 at $311,700 median home value) and even higher in King County ($667,000).

That's capitalism. The market determines the value.

[pnwguy2]

No income tax is great for those who make a lot of money. The rest have to pay the sales tax. However, in today's covid-19 environment, those sales taxes are declining. This may become a big issue for the State in the next year or two. Expect more income tax proposals. Expect a fight on this.

[trailtramp]

Any thoughts on which websites have the most current and accurate cost of living numbers by state/city?

[SusVelo]

Originally Posted by pnwguy2

No income tax is great for those who make a lot of money. The rest have to pay the sales tax. However, in today's covid-19 environment, those sales taxes are declining. This may become a big issue for the State in the next year or two. Expect more income tax proposals. Expect a fight on this.

Oregon relies on income tax, which laid off people don’t pay. State budgets will hurt either way.

[rkcarguy]

Originally Posted by simply1

I'm guessing the op didn't really think it through with his source.

Incorrect. I'm not really surprised though that California is the best, taxes are high and as a monetary amount I bet people pay a lot, but income is higher and it's a lower total % of that income. The article linked compares the % of total taxes taken from middle class income levels and Washington is the worst, almost entirely due to property taxes I'd bet.

[rkcarguy]

Originally Posted by pnwguy2

No income tax is great for those who make a lot of money. The rest have to pay the sales tax. However, in today's covid-19 environment, those sales taxes are declining. This may become a big issue for the State in the next year or two. Expect more income tax proposals. Expect a fight on this.

This is going to be a big problem moving forward. More people that are working are doing it from home, not paying our 53.5 cents per gallon of gas tax, and yes sales tax collection is declining big time with restaurant capacity reduced and many more going/gone out of business or still closed.

I think it goes to show that one way or another, the state will get it's money and while you'll pay income tax in other states you'll pay high sales taxes, property taxes, gas taxes, and more in WA to make up for it.
Those who make a lot of money are still going to pay a lot of property taxes unless they've decided upon a very modest home compared to their income.

[Hemlock140]

Originally Posted by rkcarguy

Incorrect. I'm not really surprised though that California is the best, taxes are high and as a monetary amount I bet people pay a lot, but income is higher and it's a lower total % of that income. The article linked compares the % of total taxes taken from middle class income levels and Washington is the worst, almost entirely due to property taxes I'd bet.

There are still a lot of people benefiting from Proposition 13 in California and it makes a huge difference. When the property taxes are based on the sale price of $100,000 back in 1980, and the people stay there, the property tax is a fraction of the neighbor next door who just bought in 2019 for $1.1 million and pay tax based on that value.



With home prices rising so fast, even someone who bought 2-3 years ago is already getting a break from Prop 13 compared to other states where the tax is based on current value, rather than purchase price.

[nowhereman427]

Originally Posted by simply1

California is rated the best.