Texans pay higher taxes than Californians?

7,819 Views | 71 Replies | Last: 12 mo ago by Rongagin71
GE
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AggieVictor10 said:

Fake
The numbers they are using in terms of rates and medians are what they say they are. It's just how they use those numbers that skews the result
GE
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MemphisAg1 said:

It's not just taxes. CA also imposes much stricter and more socialistic regulations that drive up the cost of everyday life. Compare CA to TX on:

-- gas price
-- real estate cost
-- fast food and restaurant cost
-- insurance cost
-- you name it...

These are the "hidden" taxes that make CA cost-of-living higher than TX. Just follow the U-Haul traffic... it's a net migration from CA to TX, not the other direction.
100% this. And all of that results in higher spending in CA meaning more money subject to the sales tax
BTKAG97
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New York residents think Texas property ta es are small.

California property taxes would be as high as Texas (on average) if not for Proposition 13 of 1978. That Constitutional amendment has suppressed housing supply and thus artificially increased housing prices.
Fightin_Aggie
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Aggie95 said:

property taxes in TX are in a lot of cases are much higher than state income taxes.
Well California and New York have both so yeah. Please enjoy the lower taxes there
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Fightin_Aggie
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BTKAG97 said:

New York residents think Texas property ta es are small.

California property taxes would be as high as Texas (on average) if not for Proposition 13 of 1978. That Constitutional amendment has suppressed housing supply and thus artificially increased housing prices.
And been the greatest wealth transfer from the young to the old in history

Opportunity!
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samurai_science
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LostInLA07 said:



Aggie95
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Fightin_Aggie said:

Aggie95 said:

property taxes in TX are in a lot of cases are much higher than state income taxes.
Well California and New York have both so yeah. Please enjoy the lower taxes there

Did I mention CA and NY specifically? I live in GA and while I don't love state income tax, I don't find it more punitive than when we moved from TX.

It goes without saying that CA snd NY are fiscal disasters that have an incredible high cost living due to all taxes and other fees
stallion6
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aggiejayrod said:

I'm not saying you're full of s but you're full of s
Dude, Texas property tax is out of control. Amateurs do the appraisal and our politicians should be ashamed of what they are doing to people on a limited income. They are also contributing to making owning a home a dream for young people. Texas politicians talk tough but do nothing in this area.
twk
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From the outfit that actually compiled the numbers relied upon in the Yahoo article:

Quote:

One simple ratio known as the "tax burden" helps cut through the confusion. Unlike tax rates, which vary widely based on an individual's circumstances, tax burden measures the proportion of total personal income that residents pay toward state and local taxes. And it isn't uniform across the U.S., either.

To determine the residents with the biggest tax burdens, WalletHub compared the 50 states across the three tax types of state tax burdens property taxes, individual income taxes and sales and excise taxes as a share of total personal income in the state.
https://wallethub.com/edu/states-with-highest-lowest-tax-burden/20494

On the tax burden scale (the one that the source sites as most important), California has the 12th highest tax burden, and Texas is 29th. So, what we have here is Fake News (in this case, the article originally appeared in Fortune magazine) cherry picking a misleading statistic.
Mas89
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stallion6 said:

aggiejayrod said:

I'm not saying you're full of s but you're full of s
Dude, Texas property tax is out of control. Amateurs do the appraisal and our politicians should be ashamed of what they are doing to people on a limited income. They are also contributing to making owning a home a dream for young people. Texas politicians talk tough but do nothing in this area.
Agree. The Tx legislature sure has maxed out home property taxes for a " conservative " state.

I'd like to see the two state comparisons on homes each appraised at 400,000. I bet Texas has a much higher home property tax. And then the 8.25 percent sales tax.

I know one young couple with 3 kids paying 10k on home taxes on a starter home purchased for 200k 10 years ago. Crazy.
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After almost 15 years in San Diego we fled in late 2014.

The primary reason was being nickeled and died to death on ever increasing COL. Utilities are through the roof, currently they pay about .24c/kwh. Water is on an ever increasing cost. Gasoline, vehicle registration etc...never ending increases.

And I had it "good" as I bought my house in '11 and its currently worth $500k more than what I paid for it. Too bad I sold it and only doubled my money. Trippled would have been amazing.

From my friends that are still there the COL has continued to increase and they ***** about it non-stop.

Another facet is the Sunshine Tax, so many people want to move there employers can pay less than market rate because someone is always willing to accept for the "privilege" of the great weather. To that end, there is no cheaper place to live within commuting distance. It's expensive AF everywhere.

Prop 13 is the main driver for all the other fee-taxes.

I have 1st hand experience of how it's way more expensive to live there and while I loved my time there, **** CA for the complete fiscal nightmare it is for everyone.
YouBet
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PA24 said:

shiftyandquick said:

Everyone outside of Texas is flabbergasted by how high the property taxes are in Texas.
School taxes are nuts in Texas. Property taxes are not that bad.

School taxes, not for books but for playgrounds called football stadiums.
Yes, thank you. People complain about our property taxes not understanding why they are high and it's because we fund all public schooling from it.

Dallas ISD accounted for 50% of my "property" taxes and ISD is 51% where I live now. I actually got a property rate cut in Dallas this year and pretty good rate cuts this year where we live now...EXCEPT for schools.

And if we didn't fund schools via property tax then they would just get it from you in another channel which would have to be a state income tax.

So, your only ways out of it are the following:

  • Cut public school funding - will never happen

With that out of the way, this leaves you with the following: Pick your poison:
  • Downgrade your home
  • Add a state income tax to replace the half of your property taxes that actually have nothing do with your property
Old May Banker
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The feds take close to half your income so we can ***** about 1-2% we think is too high locally.

Quite a shell game they've orchestrated.
Ag CPA
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LostInLA07 said:



Would love to see who is paying less than $4.9K a year in SALT here; I bet most people's property taxes alone on this board are north of $10K a year.

The per capita metric (versus household) is pushing it down but don't want to waste time doing the math.
HarleySpoon
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This whole thing is not hard to figure. If you work hard and make a very nice income, you should be in Texas. If work isn't really your thing and/or your income isn't that great you should move to and/or stay in California.

You can bend the stats either way to make your argument, but the above is pretty accurate if you're looking for a general answer.
bmks270
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Mas89 said:

stallion6 said:

aggiejayrod said:

I'm not saying you're full of s but you're full of s
Dude, Texas property tax is out of control. Amateurs do the appraisal and our politicians should be ashamed of what they are doing to people on a limited income. They are also contributing to making owning a home a dream for young people. Texas politicians talk tough but do nothing in this area.
Agree. The Tx legislature sure has maxed out home property taxes for a " conservative " state.

I'd like to see the two state comparisons on homes each appraised at 400,000. I bet Texas has a much higher home property tax. And then the 8.25 percent sales tax.

I know one young couple with 3 kids paying 10k on home taxes on a starter home purchased for 200k 10 years ago. Crazy.


And also compare the sq. Footage lol.
Many cities in CA don't even have 400k homes, but might have a 400k studio.
Seamaster
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Aggie95 said:

property taxes in TX are in a lot of cases are much higher than state income taxes.
It depends on your property....and your income, obviously.
LOYAL AG
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Quote:

I'd like to see the two state comparisons on homes each appraised at 400,000. I bet Texas has a much higher home property tax. And then the 8.25 percent sales tax.


The trick will be finding a $400k home in California. Then if you do compare that home to the one in Texas in terms of size, land, materials build quality. And quality of life for where you live. A more accurate comparison would be to find a $400k house in Texas then find a comparable house in California. It won't cost $400k.

Sales tax rates are generally the same in both states so I'm not sure what that comment is supposed to mean. Of course in California you're paying sales taxes on higher prices pretty much across the board which means you're spending more dollars on sales taxes for the same list of products and services.

Then you have that California income tax. Not sure why you omitted that.

I'm sure with enough effort you can craft a scenario where a family making $75k that owns their home pays less taxes in California but it would take work. That's ultimately why we're seeing a mass exodus from California, cost of living is outrageous.
A fearful society is a compliant society. That's why Democrats and criminals prefer their victims to be unarmed. Gun Control is not about guns, it's about control.
doubledog
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High taxes, High Temperatures, High morals. Please Libs stay away.
HollywoodBQ
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bmks270 said:

LOYAL AG said:

California sales tax rates are damn near identical to Texas with a state rate of 7.25% and a local rate of up to 1% for a total of 8.25% max. A quick check shows that the list of things subject to sales tax is similar in both states as well so it stands to reason that sales taxes are pretty much identical.

A quick scan shows California property tax rates to be about .75% on average so that's a point in their favor.

Income taxes in the other hand is a big hit and everyone pays something. Here's the rates





Total Sales tax in Los Angeles is 9.5%.
And six figure incomes is going to be paying an effective 6-7% in state income taxes.
And annual car registration for a 30k car is like $400+.
And a hamburger, fries, and soda from a fast food joint is $16.
Gas is over $5/gal.
Rents and housing is way more expensive, so small property tax rate but in really expensive property.

California IS NOT CHEAPER than Texas or
Florida.
Your numbers are off a little bit but overall, you're right.
HollywoodBQ
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bmks270 said:

Mas89 said:

stallion6 said:

aggiejayrod said:

I'm not saying you're full of s but you're full of s
Dude, Texas property tax is out of control. Amateurs do the appraisal and our politicians should be ashamed of what they are doing to people on a limited income. They are also contributing to making owning a home a dream for young people. Texas politicians talk tough but do nothing in this area.
Agree. The Tx legislature sure has maxed out home property taxes for a " conservative " state.

I'd like to see the two state comparisons on homes each appraised at 400,000. I bet Texas has a much higher home property tax. And then the 8.25 percent sales tax.

I know one young couple with 3 kids paying 10k on home taxes on a starter home purchased for 200k 10 years ago. Crazy.


And also compare the sq. Footage lol.
Many cities in CA don't even have 400k homes, but might have a 400k studio.
Not in any town where you'd want to live.
At least $1.1M for a house and at least $750,000 for a condo in SoCal.
HollywoodBQ
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LOYAL AG said:

Quote:

I'd like to see the two state comparisons on homes each appraised at 400,000. I bet Texas has a much higher home property tax. And then the 8.25 percent sales tax.


The trick will be finding a $400k home in California. Then if you do compare that home to the one in Texas in terms of size, land, materials build quality. And quality of life for where you live. A more accurate comparison would be to find a $400k house in Texas then find a comparable house in California. It won't cost $400k.

Sales tax rates are generally the same in both states so I'm not sure what that comment is supposed to mean. Of course in California you're paying sales taxes on higher prices pretty much across the board which means you're spending more dollars on sales taxes for the same list of products and services.

Then you have that California income tax. Not sure why you omitted that.

I'm sure with enough effort you can craft a scenario where a family making $75k that owns their home pays less taxes in California but it would take work. That's ultimately why we're seeing a mass exodus from California, cost of living is outrageous.
A hypothetical family on $75k is getting government assistance.
YouBet
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Additional context on this topic...

Public schools in California get 58% of their funding from the state income tax, 21% from property tax and 21% from other local, federal, and the lottery.

50% of the state income tax is covered by the top 1% of earners in the state.

Thus, if the top 1% of earners start leaving California in any kind of significant number, then property taxes will have to go up to cover the shortfall. This is the reason why California has implemented an unconstitutional, unrealized capital gains tax on wealth of the 1% for 10 years after they move away. Because they know they are f'ed if the uber rich start leaving.

So, Californians (and Texans for that matter) can be baffled all they want about our property taxes, but the state has to get that money from somewhere. You can either own property and contribute solely that way (like in Texas), or you can decide to have a state income tax, divvy the cost up across multiple channels, and shift the burden to the uber wealthy.

In a world where cutting funding to schools will never happen, which path do you want?
ttu_85
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shiftyandquick said:

Everyone outside of Texas is flabbergasted by how high the property taxes are in Texas.
Now comment on how flabbergasted THEY ARE BY THE STATE INCOME TAX RATE.

Could be worse. In some demoRat states you have high property taxes examples, NJ, IL AND high income and sales taxes. Or average prop taxes ++ Sky high State income taxes.

Its funny how Democrats cant complete anything, such as understating TOTAL tax burden. The OP was all hot and bothered by a false YAHOO hit piece, Only to be easily popped by a few factual maps and post. Then this beauty of a simplistic post.

Do Demwits ever take eco or basic business classes ?

Esteban du Plantier
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Here's a numbers I calculated on $200k income, $500k home, and sales tax on $36k of spending a year.

California:$21,873
Texas:$14,398
DannyDuberstein
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See below for a comprehensive analysis. Very thorough. Texas is 6th lowest. Cali is 5th highest.

https://files.taxfoundation.org/20220407173521/State-and-Local-Tax-Burdens-2022..pdf?_gl=1*1jusll5*_ga*ODAxOTkwNDM1LjE3MDM3ODg3NTc.*_ga_FP7KWDV08V*MTcwMzc4ODc1Ni4xLjAuMTcwMzc4ODc1Ni42MC4wLjA.





bmks270
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Esteban du Plantier said:

Here's a numbers I calculated on $200k income, $500k home, and sales tax on $36k of spending a year.

California:$21,873
Texas:$14,398

Apples to apples would be make the Texas income $150k, and the California house 1.7MM
knoxtom
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This is a very bogus study, not because of the conclusions, but rather because it is so different for people in different situations.

If you make a high income then California hits you harder.

If you are retired then Texas hits you harder.

Texas is NOT a good place to own a nice home and make low income. Your property taxes will NEVER go away. You get disabled - pay them. You lose your job - pay them. It is the number one reason why we left Texas... I have past health problems and we didn't want to lose our house if I had more health problems.

California is a great place to retire. Once you start making much less in income - you don't get hit with the income taxes. Sure you get hit with higher prices for gas and buying stuff, but you don't drive 40k miles a year when you live in California (like you do in Texas) and when you are old you don't buy much stuff. California is also a great place to live if you want the very best college for your kid. They have a massive state college system and the schools are REALLY good. That system is expensive for the State but it is also what feeds their massive economy. If California was a country, they would have the 5th largest economy in the world.


As for the people always throwing out Tennessee. Sure it has low prop and no income taxes. But is also has incredibly bad schools, almost no state school system, horrible roads, and zero infrastructure. I lived there a long time and I will probably be moving back for family reasons, and I can promise you, it is where dreams of your kid's future go to die.
Ag with kids
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knoxtom said:

This is a very bogus study, not because of the conclusions, but rather because it is so different for people in different situations.

If you make a high income then California hits you harder.

If you are retired then Texas hits you harder.

Texas is NOT a good place to own a nice home and make low income. Your property taxes will NEVER go away. You get disabled - pay them. You lose your job - pay them. It is the number one reason why we left Texas... I have past health problems and we didn't want to lose our house if I had more health problems.

California is a great place to retire. Once you start making much less in income - you don't get hit with the income taxes. Sure you get hit with higher prices for gas and buying stuff, but you don't drive 40k miles a year when you live in California (like you do in Texas) and when you are old you don't buy much stuff. California is also a great place to live if you want the very best college for your kid. They have a massive state college system and the schools are REALLY good. That system is expensive for the State but it is also what feeds their massive economy. If California was a country, they would have the 5th largest economy in the world.


As for the people always throwing out Tennessee. Sure it has low prop and no income taxes. But is also has incredibly bad schools, almost no state school system, horrible roads, and zero infrastructure. I lived there a long time and I will probably be moving back for family reasons, and I can promise you, it is where dreams of your kid's future go to die.


CA would be great to retire in if you bought your house 40 years ago.

Now, the property values are incredibly high so how are going to afford to move there to retire?
Esteban du Plantier
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bmks270 said:

Esteban du Plantier said:

Here's a numbers I calculated on $200k income, $500k home, and sales tax on $36k of spending a year.

California:$21,873
Texas:$14,398

Apples to apples would be make the Texas income $150k, and the California house 1.7MM


Ok, California tax is then increased to $30,392.
knoxtom
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Ag with kids said:

knoxtom said:

This is a very bogus study, not because of the conclusions, but rather because it is so different for people in different situations.

If you make a high income then California hits you harder.

If you are retired then Texas hits you harder.

Texas is NOT a good place to own a nice home and make low income. Your property taxes will NEVER go away. You get disabled - pay them. You lose your job - pay them. It is the number one reason why we left Texas... I have past health problems and we didn't want to lose our house if I had more health problems.

California is a great place to retire. Once you start making much less in income - you don't get hit with the income taxes. Sure you get hit with higher prices for gas and buying stuff, but you don't drive 40k miles a year when you live in California (like you do in Texas) and when you are old you don't buy much stuff. California is also a great place to live if you want the very best college for your kid. They have a massive state college system and the schools are REALLY good. That system is expensive for the State but it is also what feeds their massive economy. If California was a country, they would have the 5th largest economy in the world.


As for the people always throwing out Tennessee. Sure it has low prop and no income taxes. But is also has incredibly bad schools, almost no state school system, horrible roads, and zero infrastructure. I lived there a long time and I will probably be moving back for family reasons, and I can promise you, it is where dreams of your kid's future go to die.


CA would be great to retire in if you bought your house 40 years ago.

Now, the property values are incredibly high so how are going to afford to move there to retire?

Unless it is in Malibu I can afford a California house. Really want an orchard though and they are hard to find. I would love to have about 20 acres of cherry trees on a contract. Maybe apples up between Sacramento and Tahoe.

ABATTBQ11
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Look at the original report. The methodology is idiotic because it makes a lot of assumptions about state and local taxes on national medians. There's nothing to account for median state and local income and cost of living.
techno-ag
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Good. Get out.

Trump will fix it.
HollywoodBQ
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knoxtom said:

Ag with kids said:

knoxtom said:

This is a very bogus study, not because of the conclusions, but rather because it is so different for people in different situations.

If you make a high income then California hits you harder.

If you are retired then Texas hits you harder.

Texas is NOT a good place to own a nice home and make low income. Your property taxes will NEVER go away. You get disabled - pay them. You lose your job - pay them. It is the number one reason why we left Texas... I have past health problems and we didn't want to lose our house if I had more health problems.

California is a great place to retire. Once you start making much less in income - you don't get hit with the income taxes. Sure you get hit with higher prices for gas and buying stuff, but you don't drive 40k miles a year when you live in California (like you do in Texas) and when you are old you don't buy much stuff. California is also a great place to live if you want the very best college for your kid. They have a massive state college system and the schools are REALLY good. That system is expensive for the State but it is also what feeds their massive economy. If California was a country, they would have the 5th largest economy in the world.


As for the people always throwing out Tennessee. Sure it has low prop and no income taxes. But is also has incredibly bad schools, almost no state school system, horrible roads, and zero infrastructure. I lived there a long time and I will probably be moving back for family reasons, and I can promise you, it is where dreams of your kid's future go to die.


CA would be great to retire in if you bought your house 40 years ago.

Now, the property values are incredibly high so how are going to afford to move there to retire?

Unless it is in Malibu I can afford a California house. Really want an orchard though and they are hard to find. I would love to have about 20 acres of cherry trees on a contract. Maybe apples up between Sacramento and Tahoe.
Pro tip, a lot of rural areas east of the Bay have had their prices jacked up by demand from Bay Area folks fleeing and taking advantage of work from home.

Most notable are east of Sacto. Folsom, Rocklin, etc.
Logos Stick
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CA is not a good place to retire. The COL will eat up your retirement quickly.

That's why huge numbers of CA retirees move to AZ and NV and elsewhere.
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