What Percent Of Your Annual Expenses Are Property Taxes?

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Lazysundays
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Lazysundays »

120,000 per year on all expenses. Yes we are lucky in income and in deep with SL debt and daycare currently. Anyway $8500/120,000 =0.07%
basspond
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by basspond »

I think a more accurate question would be percentage of your total assets (not net worth) is spent in property taxes? I would classify property tax as a hidden management fee. Expenses would be 3%, assets would be 0.12%.
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CABob
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by CABob »

Lazysundays wrote:120,000 per year on all expenses. Yes we are lucky in income and in deep with SL debt and daycare currently. Anyway $8500/120,000 =0.07%
Isn't that 7%?
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Watts
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Watts »

Live in Texas where there are no state taxes, and this is made up for in property taxes. My property tax is 17% of expenses, and 7% of total income.
tj
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by tj »

0% - I rent my primary residence.
itstoomuch
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by itstoomuch »

~7% of expenses. ~7% of income. Our expenses = our income.
With investment property, ~15% of expenses.

Better prespective: My state. Oregon
No sales tax state.
State Income tax @ ~9.x% under $150k, I manage our taxes to make the our income tax effectively $0. :greedy

Washington, where DS lives and works has No Income tax but 9.5% sales tax. Have no good idea of his property tax rate or ratio. :greedy
Last edited by itstoomuch on Mon Jun 08, 2015 12:14 pm, edited 3 times in total.
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hmw
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by hmw »

5-6%, Texas.
jlawrence01
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by jlawrence01 »

~1.3%
cadreamer2015
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by cadreamer2015 »

For our projected retirement location and retirement spending they will be between 7-8% for primary residence only.
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Lazysundays
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Lazysundays »

And that is why we don't do math as the last thing you do before you put the iPod down and go to sleep. That is completely 7%. I plugged in the numbers multiple times and the number was always the same and it didn't look right but as I was falling asleep, I thought you can't argue with math. Yes you can when you forgot to turn the decimal to percent. A more awake me just sees the percent without multiplying by 100
nolesrule
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by nolesrule »

Dandy wrote:Very different answers, depending on what is included in annual expenses. For example, are the following part of annual expenses:


I guess people aren't reading the title of the post - he wanted the percent of property taxes
The issue is in calculating the total annual expense side of the calculation.

All other things being equal, someone who pays cash for a car will have a different number from someone who took out a car loan. Someone who is very frugal will have a different percentage than someone who isn't.
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siamond
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by siamond »

Around 8% (MA).
S&L1940
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by S&L1940 »

mhc wrote:~1.8% The easiest way to drop this number is to spend more. :twisted:
You beat me too it!!
Against all spend, about 6%
Fold in HOA fees - which include property taxes for common grounds along with the amenities - and that goes up to about 14%
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nolesrule
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by nolesrule »

Property taxes run about 10% of our annual expenses, excluding big-ticket items, vacations and payroll deductions for medical/dental/vision.

That number will increase to near 11% as our youngest will no longer require partial daycare (why the heck is kindergarten a half-day program in this school district?)
jhh9327
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by jhh9327 »

13% (NY)
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jfn111
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by jfn111 »

Atomic wrote:$2,400/$80,000 = 3.0%
You and I must be neighbors :sharebeer
Pretty much the same numbers 3%
ddurrett896
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by ddurrett896 »

2.7% VA
hirlaw
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by hirlaw »

About 8%. Texas.
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whatusername?
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by whatusername? »

15%, but I keep expenses low, and that's only for one year (i.e., does not include allocations for non-regular major expenses like car replacement which didn't occur in 2014).
Independent
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Independent »

The BLS gets thousands of people to fill out detailed spending reports.

The average for 2013 (for about 4,000 households, chosen to reflect US averages) was:
Property tax: $2,867
Total spending: $56,652
Ratio: 5.1%

(Spending includes principal payments on mortgages, but excludes FIT and payroll taxes.)
Last edited by Independent on Mon Jun 08, 2015 2:42 pm, edited 1 time in total.
gerntz
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by gerntz »

1.7368%, give or take.
Independent
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Independent »

Oops, double post
trueblueky
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by trueblueky »

<1% in downsized retirement home now
About 2% in final working home two years ago
Longdog
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Longdog »

gerntz wrote:1.7368%, give or take.
So it might be as high as 1.7369% ? :happy
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englishgirl
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by englishgirl »

About 8.5%.

At some point I hope to move to a cheaper home with lower tax. It feels too high to be spending that much of my expenses just for property tax.
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Grogs
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Grogs »

About 2.6%.
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Yesterdaysnews
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Yesterdaysnews »

High property taxes keep the riff raff out of my neighborhood and so I pay it. Very high taxes where i live in texas suburbia but ohh well. Comfortable in this house and neighborhood. I don't even plan to use the public schools I am paying for. Double whammy.
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EyeYield
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by EyeYield »

Independent wrote:The BLS gets thousands of people to fill out detailed spending reports.

The average for 2013 (for about 4,000 households, chosen to reflect US averages) was:
Property tax: $2,867
Total spending: $56,652
Ratio: 5.1%

(Spending includes principal payments on mortgages, but excludes FIT and payroll taxes.)
Thanks, that's interesting and seems about right to me. I would imagine that those reports excluded retirees? I spend less than those numbers and my prop taxes are more.
I guess I'll just have to spend more to get my prop percentage lower. :oops:
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Rob Bertram
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Rob Bertram »

Property taxes are about 10.4% of total expenses. (Expenses = gross income - savings)
Independent
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Independent »

EyeYield wrote:
Independent wrote:The BLS gets thousands of people to fill out detailed spending reports.

The average for 2013 (for about 4,000 households, chosen to reflect US averages) was:
Property tax: $2,867
Total spending: $56,652
Ratio: 5.1%

(Spending includes principal payments on mortgages, but excludes FIT and payroll taxes.)
Thanks, that's interesting and seems about right to me. I would imagine that those reports excluded retirees? I spend less than those numbers and my prop taxes are more.
I guess I'll just have to spend more to get my prop percentage lower. :oops:
Those numbers did not exclude retirees.
If I separate by "at least one earner" vs. "no earners", I get

One or more: $62,450, $3,063, 4.9%
None:......... $37,805, $2,236, 5.9%

About 70% of the first group have mortgages, but only 25% of the second group.
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sans souliers
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by sans souliers »

Last year's tax bill was 6.3% -- I expect this year's property taxes, while lower than last year's, will make up a larger portion of this year's expenses, as my expenses are well below those of last year.
Sometimes pessimism leaves me pretty well prepared for when things don't go my way, and pleasantly surprised when they do.
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John151
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by John151 »

About 7%.
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dodecahedron
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by dodecahedron »

Yesterdaysnews wrote:High property taxes keep the riff raff out of my neighborhood and so I pay it. Very high taxes where i live in texas suburbia but ohh well. Comfortable in this house and neighborhood. I don't even plan to use the public schools I am paying for. Double whammy.
We have very high taxes as well and most of it goes to the school district. My kids are grown but when they were younger, they homeschooled, so we also did not "use" the public schools we pay for. On the other hand, the (generally excellent!) public schools constitute a significant support for property values and our home would be worth much less without them. Also, the excellent public schools attract neighbors who share our values for learning and education, which generally makes our community a congenial place in which to live. If every community were fortunate enough to have schools like ours, perhaps many problems facing society could be solved.
Dimitri
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Dimitri »

$1,142 or 6.7% in Las Vegas. $3,012 or 17.6% if you want to include HOA fees. Spending is everything with the exception of a new car last year which was $21,156 including an 8.1% tribute to Caesar (aka the State of Nevada).
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knowledge
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by knowledge »

We're in Northern NJ, and we're at 9%
Grt2bOutdoors
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Grt2bOutdoors »

Independent wrote:The BLS gets thousands of people to fill out detailed spending reports.

The average for 2013 (for about 4,000 households, chosen to reflect US averages) was:
Property tax: $2,867
Total spending: $56,652
Ratio: 5.1%

(Spending includes principal payments on mortgages, but excludes FIT and payroll taxes.)
They must have excluded NY, NJ, CT, CA and Illinois when they took that survey on property taxes.
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Bill M
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Bill M »

20-25% of annual expenses are property taxes. One home in NJ.

Annual expenses vary from year to year; property taxes are relatively fixed. So the percentage changes.
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midareff
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by midareff »

About 2.5%.. barely enough to show on the pie chart.
dolphinsaremammals
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by dolphinsaremammals »

About 20% in Rhode Island, and I'm a senior living a comfortable but frugal life. $12,000 property taxes on a $500,000 house, $60,000 spending. The town's property taxes are a mess due to massive overspending on a high school construction debacle and the public employees' pension problem.
Last edited by dolphinsaremammals on Wed Jun 10, 2015 3:08 pm, edited 2 times in total.
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ofcmetz
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by ofcmetz »

I pay $2,000 tax on a $260,000 house. Not sure what percentage as my annual expense varies from year to year. Sales tax and income tax is a bit higher here in Louisiana than some places, so I'm sure I'm paying about the same in state/ local taxes.
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mw1739
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by mw1739 »

Roughly 6% in the Midwest. I say roughly because I haven't done a good job lately at tracking expenses.
archii
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by archii »

1.3% of annual expenses are for property tax.
Very low here due to oil and gas subsidies into the tax base. Only 800 bucks a year for 420K market value.
wafmil
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by wafmil »

3% - than you prop 13
fredjohnson
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by fredjohnson »

My property taxes are about $7k a year or 9% of my annual expenses. $550k house in Mpls suburbs. However, that $7k is only .7% of our income of $950k last year. So, comparing prop taxes to your annual expenditures isn't always very informative.
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Dale_G
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Dale_G »

I pay about 6% of ordinary living expenses excluding gifts and federal taxes. Fortunately it is only about 1.5% of cashflow. My taxes are about 1.75% of assessed value, but after credits it amounts to about $1 per square foot.
In my previous home in Ohio the taxes amounted to about $2 per square foot, and in my previous-previous home in Connecticut the taxes amounted to about $4 PSF. If anything, the services provided seem to be inversely related to the cost.

No wonder people vote with their feet.

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wilson08
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by wilson08 »

Less than 1%---lowest property tax in the
country BUT total sales tax in the county
of my residence is 10%. In most instances
throughout the country low taxes in one
category is made up by high taxes in another
category.
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JDCarpenter
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by JDCarpenter »

wilson08 wrote:Less than 1%---lowest property tax in the
country BUT total sales tax in the county
of my residence is 10%. In most instances
throughout the country low taxes in one
category is made up by high taxes in another
category
.
True. But, not always. :-) In my former Illinois residence, we had 9+% sales tax, a broad-based state income tax (which increased after we left, apparently), and outrageous property taxes. Now, our property tax, if same value house, would be 1/4 what we paid 11 years ago, same sales tax (+/- .5%), and "income" tax only on dividends/interest. And, the new area has much better services/schools to boot. :happy
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Quidnam
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by Quidnam »

About 0.65% of expenses -- we've got a 25-year "421-a" tax abatement on a condo in the city. Rest assured they make up for it with state/local income taxation.
mevertsen
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by mevertsen »

2%. Or $1200 per year.
EnjoyIt
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Re: What Percent Of Your Annual Expenses Are Property Taxes?

Post by EnjoyIt »

8-13% depending on how much I spend that year.
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