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One thing about US houses is that the property taxes are really a huge burden. Around here its 2-3% of the property value every year. Most Europeans think Ameri

One thing about US houses is that the property taxes are really a huge burden. Around here its 2-3% of the property value every year. Most Europeans think Americans pay low taxes, but if you live around NY its normal to pay 40%-50% by the time you include all the extra taxes, and that doesn't include paying your own healthcare. (OK sales taxes are lower)

jokethrowaway 6y ago
I was definitely shocked at the amount of taxes you pay - especially considering you get very little (no, I don't consider the US army a good way to spend your money). On the plus side, you have lots of space, beautiful nature, cheap real estate and lots of money (which translates to higher salaries and better opportunities).
dragonwriter 6y ago
> One thing about US houses is that the property taxes are really a huge burden Effective overall property tax rates in US states range from about 0.5% to a little over 2%, IIRC, they absolutely are not a huge burden. > Most Europeans think Americans pay low taxes, but if you live around NY its normal to pay 40%-50% by the time you include all the extra taxes I doubt it, though maybe if you are confusing marginal for total rates you would get that.
- bluedevil2k 6y ago
  2% times 20 years, you’re looking at a huge tax bill over that time span.
- x87678r 6y ago
  Property taxes are a huge burden where I live. Esp when you retire and have lower income you still have to pay $1-2k every month in taxes which is nearly as much as SS pays. Marginal is well over 50% in NYC, CA. eg top bracket marginal is 37% federal + 12.3% CA state + 1.45% Medicare is over 50% before property taxes. 40% total tax is very easy to hit. Like I said before if you're on Social Security or unemployed its really tough, I know someone who's out of work and paying $2.5K a month in property taxes, it eats up your savings super fast.
  - dragonwriter 6y ago
    > Marginal is well over 50% in NYC, CA. eg top bracket marginal is 37% federal + 12.3% CA state The top tax rate is actually 13.3% state, but even the 12.3% kicks in at over $590k for a single taxpayer, well above the 99th percentile individual income for the state, which means it's very much not normal for people to pay that much.
    - marvin 6y ago
      For comparison, the highest marginal income tax bracket in Norway is 46.4%, which applies from $100,000 per year. On top of this is 25% VAT on all purchases, 32% capital gains tax and 0.85% of net worth (with conplex deductions; 75% for primary home and 40% for stocks) each year. Employer pays 14% of your salary in tax, as well as 22% on all profits before owners pay capital gains on dividends on the remaining.
  - ghaff 6y ago
    I find that staggering. I live in Massachusetts which is not considered a low cost state and have a nice house with a fair bit of property if nothing high-end and I'm less than 20% that.
  - lotsofpulp 6y ago
    Property taxes are only that high in NJ/CT/IL/TX maybe, or other states and cities that have grossly underfunded and mismanaged pension debt and other debt from government employee retiree benefits.
- maxlamb 6y ago
  In Austin, property tax is around 2.4% of current appraised value , paid yearly. Way higher than CA.
nickik 6y ago
What is really surprising for me was that when Tesla (or somebody like that) opens a factory (or something) in Texas, locals complain because their property taxes go up and that can be a huge issue. Of course that means their property value goes up too, and that should be a good thing in the general case. Its a strange kind of situation where you make the same money and then a factory opens close to you and you now make less money.
- ghaff 6y ago
  Which basically is the reasoning behind Prop 13 in CA that people here like to rag on.
  - lotsofpulp 6y ago
    Property taxes go up because government spending per property goes up, not because property values go up. There’s no reason the tax rate on the property value can’t go down if the property value goes up. People’s problem is with their governments spending more. The only reasoning for Prop 13 is to distribute more of the burden for paying the government’s expenses to people who move to California later than those who moved before.

jokethrowaway 6y ago

I was definitely shocked at the amount of taxes you pay - especially considering you get very little (no, I don't consider the US army a good way to spend your money). On the plus side, you have lots of space, beautiful nature, cheap real estate and lots of money (which translates to higher salaries and better opportunities).

dragonwriter 6y ago

> One thing about US houses is that the property taxes are really a huge burden Effective overall property tax rates in US states range from about 0.5% to a little over 2%, IIRC, they absolutely are not a huge burden. > Most Europeans think Americans pay low taxes, but if you live around NY its normal to pay 40%-50% by the time you include all the extra taxes I doubt it, though maybe if you are confusing marginal for total rates you would get that.

bluedevil2k 6y ago
2% times 20 years, you’re looking at a huge tax bill over that time span.
x87678r 6y ago
Property taxes are a huge burden where I live. Esp when you retire and have lower income you still have to pay $1-2k every month in taxes which is nearly as much as SS pays. Marginal is well over 50% in NYC, CA. eg top bracket marginal is 37% federal + 12.3% CA state + 1.45% Medicare is over 50% before property taxes. 40% total tax is very easy to hit. Like I said before if you're on Social Security or unemployed its really tough, I know someone who's out of work and paying $2.5K a month in property taxes, it eats up your savings super fast.
- dragonwriter 6y ago
  > Marginal is well over 50% in NYC, CA. eg top bracket marginal is 37% federal + 12.3% CA state The top tax rate is actually 13.3% state, but even the 12.3% kicks in at over $590k for a single taxpayer, well above the 99th percentile individual income for the state, which means it's very much not normal for people to pay that much.
  - marvin 6y ago
    For comparison, the highest marginal income tax bracket in Norway is 46.4%, which applies from $100,000 per year. On top of this is 25% VAT on all purchases, 32% capital gains tax and 0.85% of net worth (with conplex deductions; 75% for primary home and 40% for stocks) each year. Employer pays 14% of your salary in tax, as well as 22% on all profits before owners pay capital gains on dividends on the remaining.
- ghaff 6y ago
  I find that staggering. I live in Massachusetts which is not considered a low cost state and have a nice house with a fair bit of property if nothing high-end and I'm less than 20% that.
- lotsofpulp 6y ago
  Property taxes are only that high in NJ/CT/IL/TX maybe, or other states and cities that have grossly underfunded and mismanaged pension debt and other debt from government employee retiree benefits.
maxlamb 6y ago
In Austin, property tax is around 2.4% of current appraised value , paid yearly. Way higher than CA.

nickik 6y ago

What is really surprising for me was that when Tesla (or somebody like that) opens a factory (or something) in Texas, locals complain because their property taxes go up and that can be a huge issue. Of course that means their property value goes up too, and that should be a good thing in the general case. Its a strange kind of situation where you make the same money and then a factory opens close to you and you now make less money.

ghaff 6y ago
Which basically is the reasoning behind Prop 13 in CA that people here like to rag on.
- lotsofpulp 6y ago
  Property taxes go up because government spending per property goes up, not because property values go up. There’s no reason the tax rate on the property value can’t go down if the property value goes up. People’s problem is with their governments spending more. The only reasoning for Prop 13 is to distribute more of the burden for paying the government’s expenses to people who move to California later than those who moved before.