It is cheaper to live in a state with or without property tax? Most states w/out have state income tax...?
I'm thinking about relocating. In Washington state, I pay about $4700 per year in property taxes. Of course, we don't pay state income tax in WA. I've noticed that property taxes in states with income taxes are significantly lower (i.e., Denver-metro area $400K home is less than $2000/year). How much am I going to sacrifice in state income tax, though? My family income is around $85K per year in WA. I'm assuming we'll probably receive similar incomes in CO if we decide to move there. Bostonia is right... I phrased my question incorrectly. All states have property taxes; I'm talking about states with high v. low property taxes. Thanks! By the way, our sales tax is 8.9%
Public Comments
- If one type tax is low, another is high. Here is what the averages are.
- I figure they're getting it from you one way or another, what does it matter if it's state tax, property tax, sales tax, gas tax, etc, etc, etc.
- All states have property taxes but as you have noted those without an income tax are usually MUCH higher. I can only speak from a situation that I have first hand knowledge of, the differences in taxes between TX which has no income tax but insanely high property taxes and high sales taxes and MO which has modest income taxes and relatively low property taxes but sales taxes that are virtually the same as TX. Factoring out the sales taxes since they're a wash, my total tax bite in MO is considerably lower than my property taxes alone in TX were. My home in MO is worth about $160k and the property taxes were $936 last year. My MO income tax on income about $10k less than yours was just over $3,000. Total tax bite: $3,940 in round numbers. If I owned a home of similar value in the San Antonio area where I used to live, the property taxes would be in the region of $5,600, give or take $100 either way. Therefore it's costing me about $1,500 to $1,700 less per year paying income taxes in MO than it would cost in property taxes alone in TX. That's one of the key reasons that I never returned to TX. They like to brag about not paying State income taxes in TX but for the most part the state is taking the average Texan for a far worse ride than if they had an income tax.
- Don't come to Texas. We have both 8.25% sales tax, but a horrible property tax system. My property taxes are 8 times the rate someone in an income tax state pays. My income goes down, but my property taxes don't! The $400K house you mention would be $10K in Texas property tax, maybe $1-$2K elsewhere.
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