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Are the tax benefits of Texas offset by Austin's rising home prices, and the proportional increase owed in property taxes?
by TypeCaste 5y ago
Are the tax benefits of Texas offset by Austin's rising home prices, and the proportional increase owed in property taxes?
- rossdavidh 5y agoThe cost of housing in Austin is definitely higher than surrounding parts of Texas, and rising. However, nowhere near Silicon Valley levels.
- voidfunc 5y agoYou can basically take your state income tax savings and pay a not insignificant portion of your rent.
- pdq 5y agoAustin's property tax rate was just raised to approximately 2.2% of the home value annually. Even though Austin's property values are lower than California, the percentage is much higher (California is approximately 0.7%). This is a large annual burden, especially since property values are re-appraised annually, so as property values keep going up, your taxes go up as well. There is no state or local income tax though, so high income earners save on that.
- ec109685 5y agoYes agreed. Texas has high property taxes: https://wallethub.com/edu/states-with-the-highest-and-lowest-property-taxes/11585 https://wallethub.com/edu/states-with-the-highest-and-lowest...
- lotsofpulp 5y ago> so as property values keep going up, your taxes go up as well. Taxes go up because government spending per taxpayer goes up. I have some properties where the values go up and property tax rates to go down, resulting in declining property tax paid. But it’s rare, and doesn’t last for too long.
- bradlys 5y agoAverage as far as SV goes is closer to 1.1-1.6% btw. If there’s no prop 13 equivalent in TX though, that could really help keep home prices in check along with high property tax (and maybe incentivize changing the land use along with getting people out of large homes they’re not using anymore).