When deciding where to retire or relocate it is important to look at other tax and living costs.
Property taxes are not the only local tax burden, there are income taxes (Texas does not have one), sales taxes, tax exemptions, and various other taxes. The Tax Foundation’s (a non-partisan research tax group located in Washington D. C., and founded in 1937). Their latest figures on local and state tax burden ranked Texas as the 43rd lowest with a local and state tax burden of 9.3%.
This is a great link for information on the real tax burden.
http://taxfoundation.org/taxdata/show/336.html
I live in Texas.
Here are some Texas Tax facts.
· Texas is in the midst of a two stage process to lower the school portion of the property taxes. The first phase lowered the rates for 2006, and when the rates are published in the fall there will be an additional reduction.
· Current property owners over 65 did not reap the benefits of last years adjustment to the school tax rates, so legislation has been passed that will give them some tax relief.
· If you are 65 or older in the state of Texas there is a tax ceiling put on the school tax rates, by the way this is the lions share of our property taxes ($14.70 per $1000.00 of my $18.70 2006 tax rate,)
· Let’s say you are 70, and decide you want to downsize to a smaller home…and the tax ceiling on your existing home leaves you paying 70% of the current school taxes, you can transfer that ceiling to your new home. Even if you move to a different school district, you will only pay the percentage of the school tax rate you were paying before.
· The Texas property tax code allows for a partial exemption for a homestead, if you are disabled and an additional exemption for disabled veterans.