No state income tax in Texas, but if you happen to be lucky enough to own a home there, really high property tax rates.
We have friends and family in Texas. They might not have state income tax, but the property taxes are high. Also pay personal property taxes on vehicles each year.
After you retire and your income decreases, you still have the high taxes.
I would rather pay a state income tax, and keep property taxes low.
I’m paying $17,000 a year in property taxes on my primary residence in Austin. It would be cheaper for me to live in Boston.
“ No state income tax in Texas, but if you happen to be lucky enough to own a home there, really high property tax rates.”
I’ve heard that,
We split time between Florida and Tennessee, both of which, like Texas, have no state income tax. Florida has much higher property taxes and insurance costs, while TN has a higher sales tax.
Overall TN is MUCH cheaper to live. The high sales tax is actually a blessing in my view because everyone has skin in the game and nobody is pushing to make it higher.
How low are the property taxes in TN? We had a small condo in Knoxville, just outside the city limits. We purchased for $140k and sold 7 years later for $200k. Our property tax was $750 per year. If we would have been in Knoxville proper it would have been $1500. Compare that to a house with the same basic value in Wisconsin, and we were paying $4500/year, PLUS 5.5% income tax