Tax comparison between US States

[ruffdog]

Do you feel you got value for what you pay for in the form of taxes?

To be completely honest, I feel like a lot of other people get value for what I pay in the form of taxes. That discussion however, is inherently political, and is verboten here.

Yep, that is the real question. Are the taxes fair across the board, are the benefits fair, and is the tax money being spent on needs or on wants.

 

[RickB]

Yep, that is the real question. Are the taxes fair across the board, are the benefits fair, and is the tax money being spent on needs or on wants.

Wants and needs are subjective. That is the root of the disparity in tax burdens.

 

[duffer]

The missing link in the article is that "tax law" changes almost constantly. When I was in my 40's (now 69) there were 5 PAIR of states, adjacent to each other, where one state had no sales tax, and the adjacent state had no income tax. Today...there's only one set of states left like that.

Before we moved to the southeast for retirement, I looked long and hard at TX. The problem with TX is that their property taxes are absurd. And they have almost doubled in the last 10 years or so. And as we all know, property taxes never go down over time. If we were to "transplant" our house in IN to the Austin area, which is where we wanted to live, the property taxes would be $20,000 per year.

One of the posters above is correct. It's not just the state you live in, but the locale. County and city taxes can take alot of money from your disposable income. 1.5% on $100k is $1500 a year of addt'l taxes. Not sure about you guys, but I can put that $1500 to work a helluva lot better than the city/county gov't.

Taxes are an important factor in retirement, but so is quality of life, weather, medical access, entertainment, etc etc etc.

 

[wngsprd]

What was the error that you found for Virginia?

Kip. says "In Virginia, residents pay $858 in taxes per $100,000 of assessed home value."

In fact, there is NO STATE real estate tax in Virginia. Each county or independent city assesses its own R/E tax...So you could live in some rural counties and pay as low as $420 per $100K or in one of the highest areas, such as a DC suburb and pay $1,300. This tax pays for schools, police, parks, libraries, and garbage collection, etc. where available. Most counties tax is less that what Kiplinger says.

 

[wngsprd]

I bought a stockcar from a guy in Virginia a few years back. He was telling me how your license plates were priced by vehicle value. This seems terribly unfair to me. He said he won't own anything less than 10 years old. I'm sure many others in that state adopt the same practice. Seems the auto dealers would lobby against that. Ours tags are based on vehicle weight.

Not correct. Plates are priced by vehicle type and weight...2 classes for cars: $30 or $35...2 classes for pickups: $35 or $44. Electric cars are $88 since they don't pay gas taxes added in at the pump.

 

[ruffdog]

Not correct. Plates are priced by vehicle type and weight...2 classes for cars: $30 or $35...2 classes for pickups: $35 or $44. Electric cars are $88 since they don't pay gas taxes added in at the pump.

That's cheap compared to us.....$85 for a car and $100+ for pickups. That doesn't include the wheel tax that is becoming popular for municipalities now.

Wisconsin DMV Official Government Site - Vehicle license plates fees

 

[RalphVa]

The property taxes in Louisiana are only applied to new owners. Existing owners generally pay not much more than what the tax was when they bought. We found that out when we lived there. Our neighbors were paying A LOT lower taxes than we were. We complained and got our taxes reduced some but no where near what the neighbors were paying.

 

[Agvg]

Here I live you pay a lot of taxes but you get somthing in return, free healtcare, very low kindergarten fees, free scool and high education, parental leave for almost one year with full pay, basic pension and cheap caring homes etc so its not hard to defend taxes.

 

[BoylermanCT]

Tell you couple things.
State of Maine more den happy to register yer trailer or RV and mail you a NonResident plate for it. Lady in Sec State offce told me they got thousands of plates in Hawaii and best dey know there ain't no bridge. Said Maine loves selling plates to people not gonna wear der roads out.

CT closed the Maine registration loophole and we pay personal property tax on cars, trucks, trailers, campers, snowmobiles registered in other states but parked in CT. Tax on a new car can be $1-2 thousand each year depending on its value. And the tax rate varies by city. So the same car could be taxed at $300 or $1500 based on which town you live in. Plus you pay 6.35% sales tax when you buy it! They almost passed another 6.35% tax when you sell it! Needless to say, I will be leaving CT when I retire.

 

[ruffdog]

Here I live you pay a lot of taxes but you get somthing in return, free healtcare, very low kindergarten fees, free scool and high education, parental leave for almost one year with full pay, basic pension and cheap caring homes etc so its not hard to defend taxes.

Not bad when you get a good return on your investment.

 

[user.69169]

CT closed the Maine registration loophole and we pay personal property tax on cars, trucks, trailers, campers, snowmobiles registered in other states but parked in CT. Tax on a new car can be $1-2 thousand each year depending on its value. And the tax rate varies by city. So the same car could be taxed at $300 or $1500 based on which town you live in. Plus you pay 6.35% sales tax when you buy it! They almost passed another 6.35% tax when you sell it! Needless to say, I will be leaving CT when I retire.

NY tried, dey met dat Full Faith & Credit thing in Fed Constitution. NY now claims only retired or non income earners can run Maine plates. (removed) been runnin Maine plates for yeras.

Sales tax on vehicles, NY sticks dirty hand in my pocket when I buy vehicle, den dey stick paw in pocket of guy I sell vehicle to when he buys. NY just keeps grabbin, now Killer Governor cryin for rich people he told to leave last year to come back. He even gonna buy em a meal when dey come back. He take dat meal out of my mouth if he can.

Truth to tell I got real low opinion of anybody spends millions of dollars to get a job pays $200,000 a year. Dat man ain't got needed sense to run a swan boat ride.

 

[Steppenwolfe]

NY tried, dey met dat Full Faith & Credit thing in Fed Constitution. NY now claims only retired or non income earners can run Maine plates. (removed) been runnin Maine plates for yeras.

Sales tax on vehicles, NY sticks dirty hand in my pocket when I buy vehicle, den dey stick paw in pocket of guy I sell vehicle to when he buys. NY just keeps grabbin, now Killer Governor cryin for rich people he told to leave last year to come back. He even gonna buy em a meal when dey come back. He take dat meal out of my mouth if he can.

Truth to tell I got real low opinion of anybody spends millions of dollars to get a job pays $200,000 a year. Dat man ain't got needed sense to run a swan boat ride.

Bull&*%$... You do understand that I bet.

 

[jmc]

NY tried, dey met dat Full Faith & Credit thing in Fed Constitution. NY now claims only retired or non income earners can run Maine plates. (removed) been runnin Maine plates for yeras.

Sales tax on vehicles, NY sticks dirty hand in my pocket when I buy vehicle, den dey stick paw in pocket of guy I sell vehicle to when he buys. NY just keeps grabbin, now Killer Governor cryin for rich people he told to leave last year to come back. He even gonna buy em a meal when dey come back. He take dat meal out of my mouth if he can.

Truth to tell I got real low opinion of anybody spends millions of dollars to get a job pays $200,000 a year. Dat man ain't got needed sense to run a swan boat ride.

Frankly (removed), anybody that posts with your contrived colloquialisms doesn't seem like the sharpest knife in the drawer either.

 

[ruffdog]

Frankly (removed), anybody that posts with your contrived colloquialisms doesn't seem like the sharpest SPOON in the drawer either.

Fixed....:drink:

 

[Tinhack]

I usually find Kiplinger to be quality information, but I found a significant error in what they show for my state - Virginia. Don't know enough about other states.

I also did a 5 state comparo and would argue that they are incorrectly labeling states...I don't agree with showing California and Washington as tax friendlier than Texas and North Carolina. It certainly depends on your income level, spending habits and the real estate/vehicle you own.

Yeah, I lost respect as soon as I saw CA and WA as "tax friendly" states. I checked what they had for Texas and it was generalized to a point of being incomplete. Sure, Texas taxes car sales but it's a lower rate. And you only pay it once. They are not taxed every year like property. And there is no personal property tax. And our annual registration (tags) is lower than most all other states. I just paid $75 to renew on my GMC Sierra. There are so many other facts left out I lack confidence in the entire report.

There's also valuation differences. A one million dollar home in CA might equal a $150k home in TX with the same amenities. And more property, no doubt.

 

[polo1665]

Kip. says "In Virginia, residents pay $858 in taxes per $100,000 of assessed home value."

In fact, there is NO STATE real estate tax in Virginia. Each county or independent city assesses its own R/E tax...So you could live in some rural counties and pay as low as $420 per $100K or in one of the highest areas, such as a DC suburb and pay $1,300. This tax pays for schools, police, parks, libraries, and garbage collection, etc. where available. Most counties tax is less that what Kiplinger says.

I see what you are saying. More than likely they meant that the "average" homeowner pays the $858 per $100,000, but you're right, it's kind of sloppy the way they worded it.

I lived in Va. for 10 years (mid 80's to mid 90's) never really thought real estate taxes were bad. I lived out in the country though (Gloucester county). What I really hated was the personal property tax. Nothing like getting taxed when you buy a vehicle and then again every year thereafter.

Now I live in Ohio. No personal property taxes, but the real estate taxes in my county are extreme. Especially for living in a rural community.

 

[wngsprd]

I see what you are saying. More than likely they meant that the "average" homeowner pays the $858 per $100,000, but you're right, it's kind of sloppy the way they worded it.

I lived in Va. for 10 years (mid 80's to mid 90's) never really thought real estate taxes were bad. I lived out in the country though (Gloucester county). What I really hated was the personal property tax. Nothing like getting taxed when you buy a vehicle and then again every year thereafter.

Now I live in Ohio. No personal property taxes, but the real estate taxes in my county are extreme. Especially for living in a rural community.

Gloucester is a beautiful area. But so are the parts of Ohio I've been to...hope you like it there.

The personal property tax is also administered by city or county...and of course varies a great deal. Our county has some discounts, like for high mileage. It is used to offset that there is no city or county income tax.

 

[Bullwinkle123]

All I can say is beware Vermont. After living in MA with a postage stamp sized property and typical overpriced Boston area house, then moving to place in VT with basically the same sticker price, but with a lot of land (under tax-advantaged "Current Use" program), the VT property taxes are killer, almost twice as high, and I receive no useful services for those taxes (too remote, my road gets one "grading" a year, that's it - no plowing, no maintenance, even my mailbox is in the next town).

And VT taxes retirement benefits. Really ironic since Massachusetts is often called "Taxachusetts", but Vermont is far worse. Had I been more aware of it in advance I probably wouldn't have moved here.

 

[ultrarunner]

Yes, this is very deceiving. Comparing property taxes from one state to another is very apples and oranges...some states re-assess property every so many years, while others go by purchase price...so if you paid $30,000 for your house in 1972, that's what your tax rate is based on as long as you own it. Seems unfair to me.
Also, home values vary considerably from state to state...yeah the tax rate in state A might be half of what state B's is, but if the average house price is double it all comes out in the wash.
I had to laugh when I saw California listed as "tax friendly".

Which State doesn't re-assess property?

 

[Oaktree]

I lived in Va. for 10 years (mid 80's to mid 90's) never really thought real estate taxes were bad. I lived out in the country though (Gloucester county). What I really hated was the personal property tax. Nothing like getting taxed when you buy a vehicle and then again every year thereafter.

Now I live in Ohio. No personal property taxes, but the real estate taxes in my county are extreme. Especially for living in a rural community.

That's the thing, you have to look at the whole picture. Some states may have relatively low property taxes, but make up for it with income and/or sales taxes, personal property taxes like you mentioned and other sneaky ways of extracting $. The money has to come from somewhere,. I don't particularly like the high property taxes we have in N.H., but I dislike a sales tax a lot more (which we don't have...at least yet). Despite the property tax rate here in N.H., the total tax burden for residents is one of the lower ones in the country.

All I can say is beware Vermont. After living in MA with a postage stamp sized property and typical overpriced Boston area house, then moving to place in VT with basically the same sticker price, but with a lot of land (under tax-advantaged "Current Use" program), the VT property taxes are killer, almost twice as high, and I receive no useful services for those taxes (too remote, my road gets one "grading" a year, that's it - no plowing, no maintenance, even my mailbox is in the next town).

Yeah. One of my sisters lives in Vt., in a town that's about the same size as the one I live in, and, for a property of similar assessed value her taxes are about 50% higher than mine, and that's in addition to sales and income taxes and who knows what else. Also, Vt. charges non-residents a higher property tax rate than they do residents. I don't know what they do with all that money...I don't see any more/better services on that side of the river, and the roads sure aren't any better maintained.

Which State doesn't re-assess property?

I have a friend who lives in Fla., and he claims he's never had a re-assessment in the roughly 45 years he's had his house. Someone upthread mentioned another state that doesn't either...Louisiana maybe?