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.
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.