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.
Retired.
IL: 13% of budget
NV: 4% of budget
I don't know why it is higher than most posters.
Have you or any senior citizens groups in your area spoken with your elected representatives about this problem?
What is BLM land?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.
Where do you live?Our condo is valued at $332k and property taxes are $250/yr or .45% of our annual budget.
Our condo is valued at $332k and property taxes are $250/yr or .45% of our annual budget.
I am not a senior, but I have not addressed this with any legislator because I feel it would be futile.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?
What is BLM land?
What is BLM land?
Do you think you will stay in NJ when you FIRE? If not, where will you go? I have thought about Delaware or parts of Pennsylvania perhaps.nico..I too live in NJ and pay ridiculous amount in property taxes. It's about 7% of my current salary. It'll be close to 11-12% of my FIRE withdrawal rate.
Yes, I think NJ has some kind of property tax freeze for seniors as an incentive to keep them in the state after they retire. At some point, based on age and income level, their property taxes no longer increase. I am many years away from being eligible for anything like that.I am ER'd and DW is still working but our property taxes in CA are 2% of our income. We bought our house 30 yrs ago and Prop 13 has kept the taxes low.