Despite its ranking as the 3rd most expensive state to live in, California’s effective property tax rate of 0.76% is lower than both Texas’ property tax rate of 1.80% and the national average property tax rate of 1.07%.
In California, property taxes are calculated ad valorem, based on your home’s value. California’s Proposition 13 states that to calculate your property tax, multiply the state tax rate by the tax assessed value of your property. Prop 13 limits property taxes to 1% of your home’s value and does not allow tax assessments to rise by more than 2% each year.
Theoretical computation using whatever… might as well use the real data faced by real person.
Bigger, newer (4 years old) house, yet pay less property tax (in absolute dollar) than a smaller, older (40 years old) house.
Even after the 32% growth in q2 last year TX GDP per capita is 80K vs 93K in CA.
People moving into CA are usually higher educated, while those leaving are mostly lower income:
Between 2010 and 2020, about 700,000 lower-income people left the Golden State, followed by more than 300,000 middle-income people, according to data from the Public Policy Institute of California.
A glance at software engineering salaries says it all. A freshly minted college graduate in computer engineering from the University of Texas at Austin might make, on average, $500,000 working in Los Gatos, west of San Jose. Austin, meanwhile, doesn’t even make a list from this year of the 25 top-paying markets for software developers (markets in which average salaries start at just over $200,000). Data provided by Allied Van Lines hint at those economic incentives for the wealthy, showing residents of upscale Texas ZIP codes in Katy, The Woodlands, Austin and Dallas moving to even more upscale California ZIP codes including those in Los Angeles, Newport Beach, San Jose and San Francisco.
So just extrapolate from 2 quarters’ number into eternity? That’s how you do TA on stocks? Surprised you didn’t sell all of your Apple stocks after dot-com.
Other comparisons using GDP and other metrics, too macro and we don’t know how they are computed exactly (too many inputs involved) and doesn’t counter the fact that people are moving away. Is really a red herring.
People are leaving for those three reasons. Agree or not? Give reasons/ opposing evidences if don’t agree. Don’t throw red herrings.
I am never leaving. Don’t care if Texas is cheaper. I live in paradise.
Was farming this morning in 65 degree balmy weather. Then drove to Tahoe in 80 minutes. 48 degrees sunny and warm for Tahoe. Best skiing this year in my lifetime. It’s so crowded, no one comes here anymore… paraphrasing Yogi Berra…
As far as property tax… what is the percentage you pay based on the purchase price. And how much can it go up in Texas. For retired people property tax is regressive and much more impactful than income tax. The government is going to get your money one way or another…
I would send pictures… but I can’t figure out how to do it
My main reason for leaving was civil rights. You can’t pass gas in CA without waiting months or years for an expensive permit - if it’s issued at all. Taxes are very low on my list of reasons for moving although given gas taxes and a 2.5% income tax my total tax bill is considerably lower in AZ. Property tax amounts to slightly less than 1% of assessed value.
Services are another plus. Roads cleared much faster after storms. Accidents are cleared quickly. There are satellite libraries in rural areas instead of weekly “Bookmobiles” there for about an hour. Crime, when it occurs, is taken seriously. The power doesn’t go out just because the wind blew a bit. The state doesn’t catch fire and burn down every summer and fall. And on and on. It’s not so much that I pay less in tax; it’s that those tax dollars are spent on ME and not illegals, bums, trains to nowhere, etc.
You can’t use generic numbers or other people’s situation. Have to use your own specific personal situation to do the number.
Property tax in Texas can be discounted by homestead and when above 65. Mine is discounted by homestead. It would be a long time, if ever, the property tax in absolute dollar term in Austin to be higher than that in CU. Property price has been declining so the 2023 assessed value should be lower hence the property tax in 2023 would decline in Austin but for CU would continue to appreciate at 2%… haha.
There are many regulations, you need to go through them to get the right picture for cost of living, income tax and property tax. There is a very good tax reason for EM to migrate from CA to TX.
This is subjective. Is not a financial reason so can’t be computed. Some people think Penang is a paradise, some people think Bali is a paradise, some people think Singapore is a paradise, some people think Brunei is a paradise, some people think Gold Coast is a paradise,…
Spring coming at the farm. I think you can quantify the desirability of a location. The more it costs the more desirable. Of course not attainable for people that can’t afford it.
Agree, the only universal desirability metric of any location or for that matter anything is its price.
So if TX RE is far cheaper then CA then it means TX RE less desirable than CA RE.
True. But no lake. Lake Tahoe is the most visited tourist attraction in California. In fact many want to make it a national park.
In addition Tahoe is one hour from mild snow free weather. which makes it the most unique ski area with world class resorts in the country…the only thing close is Big Bear, 2 hours from LA and is a second tier ski area at best.
to get the right picture for cost of living, income tax and property tax. There is a very good tax reason for EM to migrate from CA to TX.
