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09-26-2013, 09:25 AM
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#21
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Moderator
Join Date: Apr 2012
Location: San Diego
Posts: 14,212
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I've got a low tax rate for CA because I bought from family and was able to capture the prop 13 tax rate. I then blew that by building a granny flat which added tax at the current rate at time we obtained occupancy. We pay double our primary home rate for the 700 sf granny flat. (All on same lot - so same tax bill.)
2.1% of current gross income from all sources (including rent from granny flat)
3.2% of expected gross retirement budget.
I feel very lucky to have been able to transfer the rate from my parents when we purchased. It was a HUGE factor in being able to afford this house in such an expensive market. My dad would have fit right in here - frugal, lbym's type of guy - and yes - he made us pay full market value for the house. But we got the tax rate.
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09-26-2013, 09:51 AM
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#22
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Full time employment: Posting here.
Join Date: Jan 2011
Posts: 586
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Retired.
IL: 13% of budget
NV: 4% of budget
I don't know why it is higher than most posters.
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09-26-2013, 09:56 AM
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#23
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Thinks s/he gets paid by the post
Join Date: Feb 2010
Location: Cavalier
Posts: 2,317
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2.1% on a very small house, approx 900 sq.ft.
__________________
"Don't take life so serious, son. It ain't nohow permanent." Pogo Possum (Walt Kelly)
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09-26-2013, 10:00 AM
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#24
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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When I got the hell out of NJ for CO, I bought a house for about the same money, got 50% more square footage and land, and my annual RE tax bill is less than I paid to the theiving bastards in NJ in a quarter.
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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09-26-2013, 10:17 AM
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#25
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Thinks s/he gets paid by the post
Join Date: Jul 2012
Location: Mississippi
Posts: 1,894
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When working it was 1.5% of income
FIRED it's 6.5% of budget
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09-26-2013, 10:24 AM
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#26
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Full time employment: Posting here.
Join Date: Jul 2011
Posts: 723
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WI property taxes amount to about 2% of the home value... yippee.
2.9% of current income
7.5% of estimated retirement pre-tax budget (not retired)
Will be downsizing, so will likely be around 3.8% of retirement budget
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09-26-2013, 10:35 AM
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#27
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Thinks s/he gets paid by the post
Join Date: Jan 2004
Posts: 2,049
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14.1% of my annual spending (~$40k) in TX. That's for only 1000 square feet, too.
I'm not RE yet (I'm bouncing on the FI line) so it's of course less than my annual income.
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09-26-2013, 11:11 AM
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#28
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2007
Location: New Orleans
Posts: 47,500
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My property tax is 1.3% of what FIRECalc says I can spend.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.
Happily retired since 2009, at age 61. Best years of my life by far!
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09-26-2013, 11:17 AM
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#29
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Recycles dryer sheets
Join Date: Dec 2011
Location: philadelphia
Posts: 115
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Quote:
Originally Posted by nico08
Hi:
I live in New Jersey, a state with high property taxes.
Based on my current income (I am not yet FIRE) my property tax is 5.9 percent of my annual pre-tax income.
Based on my predicted FIRE annual budget, my property tax will be approximately 15.3 percent of the FIRE annual budget. My FIRE annual budget is less than my current annual income. This percent seems very high and I question whether I can FIRE for the long term in New Jersey based in part on the high property taxes.
There are a number of reasons why I would like to stay here. My friends and family are here. I like being close to NYC. I like the Jersey Shore. I like having four seasons, etc. My professional license is in this state.
That leads me to some questions. First, I would like to know what percent of your annual income/FIRE annual budget is comprised of property tax.
Aside from relocating, can you think of ways that I could reduce the percent of my FIRE budget that property taxes will represent. I live in a fairly modest home and the property tax is on the lower side of average for New Jersey.
I appealed my property tax assessment and negotiated a settlement with county. But the new assessed value does not reduce the property tax amount significantly.
If I rented, I would not be directly responsible for property taxes, but the cost would be built into the rent payment. And since I got a mortgage at a very low rate of interest, my mortgage payment and property tax payment for the house is about the same amount as monthly rent on a much smaller apartment.
I appreciate your insight.
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I feel your pain. I'm in Philadelphia and properties are being reassessed. We don't know what the new figures will be yet, but real estate taxes could be as much as 35% of a retirement budget. We won't be staying in this house, but we also don't want to leave the area as we can be in Midtown Manhattan or the Jersey Shore in under ninety minutes. The PA suburbs have high taxes, and the NJ suburbs taxes are the highest in the nation.
Have you or any senior citizens groups in your area spoken with your elected representatives about this problem?
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09-26-2013, 11:29 AM
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#30
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Thinks s/he gets paid by the post
Join Date: Aug 2010
Posts: 1,089
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In LA, CA.
1.5% of current income.
4.5% of planned retirement budget.
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09-26-2013, 11:39 AM
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#31
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Thinks s/he gets paid by the post
Join Date: Sep 2006
Posts: 1,743
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South of Boston
3% of current income
6.75% of retirement budget
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09-26-2013, 11:41 AM
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#32
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Full time employment: Posting here.
Join Date: May 2013
Posts: 727
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Living in tax-loving Wisconsin - 11.8% of RE expense. Looking at other states in RE...
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09-26-2013, 11:44 AM
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#33
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Posts: 11,702
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Quote:
Originally Posted by KingB
Retired.
IL: 13% of budget
NV: 4% of budget
I don't know why it is higher than most posters.
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Because they are not in IL.
My Dad was paying 10% of his income in RE taxes. He only owned a condo, and he has a decent pension on top of SS. This is northern suburbs of Chicago.
We finally sold the place and he is recovering a lot of expenses to pay for his independent living apartment.
For the record, here in NC I expect to pay about 2% of my expected income in retirement.
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09-26-2013, 12:10 PM
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#34
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Sep 2012
Location: Seattle
Posts: 6,023
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No way would I stay in IL. You will be bailing out everyone else and every other program with your property taxes for years.
We pay about 2% of our income as RE tax in WA and will pay 0% real estate tax in retirement when staying on BLM land in our RV.
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09-26-2013, 12:32 PM
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#35
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Full time employment: Posting here.
Join Date: May 2010
Posts: 996
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Our condo is valued at $332k and property taxes are $250/yr or .45% of our annual budget.
__________________
Wherever you go, there you are.
(In other words, no whining!)
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09-26-2013, 12:34 PM
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#36
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Mar 2003
Posts: 18,085
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Quote:
Originally Posted by james7
Have you or any senior citizens groups in your area spoken with your elected representatives about this problem?
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Haaaahahahahahaha!!!
Who do you think is living it up with your RE tax money?
__________________
"All animals are equal, but some animals are more equal than others."
- George Orwell
Ezekiel 23:20
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09-26-2013, 12:37 PM
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#37
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Full time employment: Posting here.
Join Date: Jan 2008
Posts: 759
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Currently 4.08% of ER spending budget. State of WA. Curious to see if that number changes over time.
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09-26-2013, 12:44 PM
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#38
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Administrator
Join Date: Jan 2008
Location: Chicagoland
Posts: 40,714
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We have two places, total about 7.5% of our yearly budget. We used to have one home, in NY, where we lived before retiring. Similar property value to what we have now, but the '11 property tax was / is 16% of our budget.
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09-26-2013, 12:54 PM
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#39
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Recycles dryer sheets
Join Date: Feb 2010
Posts: 429
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Quote:
Originally Posted by Fermion
No way would I stay in IL. You will be bailing out everyone else and every other program with your property taxes for years.
We pay about 2% of our income as RE tax in WA and will pay 0% real estate tax in retirement when staying on BLM land in our RV.
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What is BLM land?
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09-26-2013, 12:55 PM
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#40
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Recycles dryer sheets
Join Date: Feb 2010
Posts: 429
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Quote:
Originally Posted by BTravlin
Our condo is valued at $332k and property taxes are $250/yr or .45% of our annual budget.
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Where do you live?
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