# Property Taxes -  Rising home values could torpedo your retirement plans



## KingsX (May 11, 2018)

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Like most homeowners in the DFW area,  I've experienced a home owner's sticker shock.

This year my Dallas home property value was increased 25%.  I protested the value and it was reduced somewhat.

This interesting and timely news article sums it up.


*Property tax time bomb: How rising home values could torpedo your retirement plans*

May 09, 2018 

FORT WORTH

Stacy Fuller hoped to live out her retirement years in Fort Worth, her home since 1958, but property taxes drove her away.

The retired widow recently sold her longtime home in the city's Wedgwood area and downsized to a $40,000 home in a small city near the Texas-Arkansas state line, where property taxes are $475 a year — a tiny fraction compared to the $4,400 she was paying annually in Tarrant County.

She lives mostly on her pension from Union Pacific Resources, an oil exploration company, where she worked as a database manager.

"I would like to still be in Fort Worth. My daughter and grandchildren and great-grandchildren are there, and now it's a four-hour drive to see them," she said. "But I needed to be able to live on Social Security and my pension. I knew by the time I reached 65 the property taxes would take my entire pension check to cover. It's sad to work so long, to have a paid-for house and find you can no longer afford to live in it if you retire."

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North Texas has already lost its reputation as a place where housing is dirt cheap, with home prices increasing 33 percent in the past three years. That's good if you're in the market to sell your home — but bad if you want to stick around and "age in place" during retirement years, while paying a much higher property tax bill.

Some residents who are at or nearing retirement age find they don't have enough saved up to pay living expenses, with several thousand additional dollars per year going toward property taxes that they didn't forecast in their budgets. Although some local governments offer residents a property tax freeze after they reach age 65, the freeze doesn't affect all taxes.

And many residents are being caught off guard by the steady rise in property values in their 40s and 50s as they begin to plan for retirement — well before they qualify for a tax freeze."

more at link

http://www.star-telegram.com/news/business/growth/article209980869.html

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## Don M. (May 11, 2018)

Housing prices...and property taxes...are going up all over the nation....especially in or near the major cities.  The combination of an increasing population, and a major downturn in new housing construction, is driving real estate prices sharply higher.  The housing bubble in the early 2000's, and the subsequent collapse of the markets, drove many contractors out of business, so Demand is far exceeding Supply.  Plus, higher education costs, which in most locales are supported by Property taxes, are also driving the taxes higher.  
That's one of the reasons why we left the city, and moved to the boondocks when we retired.  Our property taxes haven't gone up by more than a few percentage points since we moved here 15 years ago.  Our kids are both preparing to move to the country within the next couple of years, and one of the granddaughters and family moved away from the city 5 or 6 years ago, and the other granddaughter/husband just bought a house in a small town about 15 miles away.  They figure that the extra cost of driving a bit further is a lot less than putting up with the rising costs in the city.


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## mathjak107 (May 12, 2018)

think about this:

back in the 1970's when we all bought homes in long island , a home was 30-35k . that mortgage was a lot of money to us back then .

well today those mortgages are all paid and real estate taxes are 12-15k on those homes . so the fact the home is paid for really means little in affordability . paying off that mortgage and not having a payment anymore that does not even cover a utility bill  means little to those who hoped to retire here .

we thought we would retire to our 2nd home in the pocono's but to be honest that life bored us after 5 years there  part time. i could never imagine living their forever . so we sold it and realized living here in queens is worth every penny .


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## dpwspringer (May 12, 2018)

I live in the metro Atlanta area and had my property taxes reduced about in half (no school taxes) by filing the appropriate forms, including copies of my income taxes. That is available to those of us who are old enough. It doesn't go by your net worth, just by how much income, etc that show up on your income taxes... I believe it excludes income from SS. They don't tell you their formula or go over it with you where I live, they just take your info and you wait until you hear back from them.


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## Ken N Tx (May 12, 2018)

dpwspringer said:


> I live in the metro Atlanta area and had my property taxes reduced about in half (no school taxes) by filing the appropriate forms, including copies of my income taxes. That is available to those of us who are old enough. It doesn't go by your net worth, just by how much income, etc that show up on your income taxes... I believe it excludes income from SS. They don't tell you their formula or go over it with you where I live, they just take your info and you wait until you hear back from them.



That is odd that property taxes are determined by income!! (?????)


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## C'est Moi (May 12, 2018)

Ken N Tx said:


> That is odd that property taxes are determined by income!! (?????)



Agree; never heard of such.   In Harris County (Houston) Texas, there are several exemptions available for qualified homeowners... Residential Homestead Exemptions (over-65, disability,  over-55 surviving spouse, or 100% disabled veteran homestead exemptions.)   There is also a cap on property value increases with the Homestead Exemption.

Our taxes have steadily increased over the years, but luckily property values in the Houston area have historically been quite affordable compared to many areas of the country.


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## dpwspringer (May 13, 2018)

Ken N Tx said:


> That is odd that property taxes are determined by income!! (?????)


Where I live it is the school tax portion of your property taxes that you can qualify for an exemption for based on your age and the taxable income reported by you on your tax forms. The school tax portion made up about half of my property taxes when I had to pay it too. 

They have several different types of exemptions. I didn't even know about them until I overheard a conversation and then got online and looked it up. Turned out I missed out on a couple of years of it because I didn't know to file.


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## Don M. (May 13, 2018)

Ken N Tx said:


> That is odd that property taxes are determined by income!! (?????)



Yup, that's true here in Missouri.  For Seniors, the annual taxable income must be less than $35K per year, to qualify for a property tax exemption.


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## teacherterry (May 13, 2018)

We live in NV and property taxes are so cheap. We live in a house valued at 350k and only pay 700/year. Part of it is that the tax is based on the age of your home. So our house built in 1950 is much cheaper then the same value new home.


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## CarolfromTX (May 15, 2018)

In Williamson County, Texas, when you are 65, you can apply for an exemption. I don't think it freezes taxes, but it prevents them from going up more than a certain percentage. It's still got to be better than paying rent. The economy is booming in Texas, so naturally housing values are going up. Just my luck!


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## KingsX (May 15, 2018)

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Anyone here in Illinois ?

What's this news about some in Illinois advocating another statewide property tax to fund pensions ??

Pension funding problems are widespread... so if this flies, other states might do this.



*Chicago Fed economists recommend statewide property tax*

http://www.chicagobusiness.com/real...for-pensions-say-three-chicago-fed-economists


*Chicago Fed Recommends State-wide Property Tax To Reduce Public-sector Pension Funding Shortfall *

https://confoundedinterest.net/2018...-shortfall-the-confiscation-train-is-rolling/


More info here

http://www.investmentwatchblog.com/...x-on-top-of-everything-annually-for-30-years/

https://www.rushlimbaugh.com/daily/...rals-destroy-home-values-fund-union-pensions/

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## KingsX (May 15, 2018)

CarolfromTX said:


> In Williamson County, Texas, when you are 65, you can apply for an exemption. I don't think it freezes taxes, but it prevents them from going up more than a certain percentage. It's still got to be better than paying rent. The economy is booming in Texas, so naturally housing values are going up. Just my luck!




Here in Dallas County,  school taxes are frozen at age 65... 
My school taxes were frozen last year at about $1750.  

But when my home value went up,  it automatically increased 
my city and some county taxes [I pay $200 a year to help fund
the county [charity] hospital which now is mostly immigrants.]

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## gamboolman (May 20, 2018)

C'est Moi said:


> Agree; never heard of such.   In Harris County (Houston) Texas, there are several exemptions available for qualified homeowners... Residential Homestead Exemptions (over-65, disability,  over-55 surviving spouse, or 100% disabled veteran homestead exemptions.)   There is also a cap on property value increases with the Homestead Exemption.
> 
> Our taxes have steadily increased over the years, but luckily property values in the Houston area have historically been quite affordable compared to many areas of the country.



Ms. gamboolgal and I very interested in this topic.  We would appreciate any advise and general information from the members. :help1:

We own our home in Spring, Harris County, Texas. 

Between the current taxes and insurance - we are paying near to ~$11K combined per year.

I'm 59 and we live oversea's as I'm still working the oilpatch - but planning to retire next year.  While working and making oversea's premium's - the money is there. 

But once we pull the trigger and head to Texas to hopefully, and God Willing never get another stamp in our passports again ! The Taxes and Insurance on the residence will be one of our largest, if not the largest non-discretionary expense.

We have the Homestead exemption of course.

Thus we were wondering how much the over 65 exemption helps?  

Do you you know if there is any way to reduce the School Taxes for Seniors?

Are there any other ways to reduce the taxes on the residence?  

Thanks for any help and assistance ! 


gamboolman & gamboolgal :cheerful:


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## KingsX (May 20, 2018)

gamboolman said:


> Ms. gamboolgal and I very interested in this topic.  We would appreciate any advise and general information from the members. :help1:
> 
> We own our home in Spring, Harris County, Texas.
> 
> ...





In Texas when the homeowner turns age 65 his *school taxes* are frozen.

An extra $10,000 over age 65 *school tax* exemption is given in addition to the 
$25,000 *school tax* homestead exemption you should already have.  

There may be other specific over age 65 exemptions for city and county taxes and they
will vary depending upon the city/county. 

You can contact the Harris County Appraisal District to get more specific tax information
based on the taxing entities where your house is located... and find out if you need to
contact them when you turn 65 or if they have your birth date on file and it's automatic.

You also have the right to dispute the valuation on your home if you think it the 
appraisal is too high.  But you just missed the deadline this year [May 15.] 


Here is additional info for Harris County.

http://hcad.org/about/contact/

http://hcad.org/hcad-help/texas-fir...tions/property-tax-exemptions-for-homeowners/

http://hcad.org/hcad-forms/hcad-all-forms/

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## Lethe200 (May 20, 2018)

I think I've posted this a long while back, but it gets updated periodically:

*State-by-State Guide to Taxes on Retirees
*Kiplinger.com

Click on any state in the map below for a detailed summary of taxes on retirement income, property and purchases, as well as special tax breaks for seniors. See more maps below, including the most tax-friendly and least tax-friendly states for retirees.
https://www.kiplinger.com/tool/reti...by-state-guide-to-taxes-on-retirees/index.php


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## gamboolman (May 27, 2018)

KingsX

Thank you for the prompt and thorough response !  Much appreciated as I will admit when it comes to taxes - we have just accepted them. 

I have no idea what our home has been being appraised at since we bought it 16ish years ago. We just pay the taxes.

Being oversea's the whole time we just have Mega Corp and our CPA take care of our Income Taxes.  Next year we will be prepared to contest valuation if it appears out of line.

Thanks again,  gamboolman & Ms. gamboolgal...


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## KingsX (May 27, 2018)

gamboolman said:


> KingsX
> 
> 
> Thank you for the prompt and thorough response !  Much appreciated as I will admit when it comes to taxes - we have just accepted them.
> ...




You have the right to officially protest to lower the taxing district's appraised value of your home [thus reduce your taxes.]

The webpages I previously posted should give you information on the official protest procedures in your district.  If not, call them.

Here in Dallas County it is easy and often effective to officially protest and you don't have to be present at the official hearing.

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## Ken N Tx (May 27, 2018)

Our taxes, here in a Denton County,have been lower here due to a Oil/Gas well drilling over the past 8 years. That will change and start rising as drilling has ceased and home sales/values have increased!!


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## Colleen (May 30, 2018)

We have lived in several states since retiring in 2001: CA, TX, PA, and AZ. The most tax friendly we found was TX. We Homsteaded and my husband's pension was not taxable. We had very low property taxes on a nice 3-bedroom, 2 bath home. We had reasonable car insurance also. I think it was because of our location. We were located about 100 miles from Houston, San Antonio, and Corpus Christi.

The other cheapest place was PA. We lived in a small town about 35 south of a major city. There was reasonable home prices and groceries didn't cost a fortune. Low car insurance, property taxes (we were able to Homestead there also) and my husband's pension was not taxed.

There's no need to say how ridiculous CA is for taxes....or anything else. 

Arizona use to be a very senior friendly state to live in, but not any more. Housing prices have shot up even in our small town. The building is crazy here but then again, a LOT of the buyers are retirees from CA. They're driving the prices up. It's a good thing if you plan on selling, but if you're looking to buy, it's not as cheap as it use to be. We were surprised that my husband's pension is taxed here in AZ.


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## bingo (May 30, 2018)

KingsX said:


> .
> 
> Anyone here in Illinois ?
> 
> ...


we moved to southeast Illinois 2 years ago...we will qualify for homestead exemption nxt year...haven't heard about the state's new outrageous plan...


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## billt (Jun 10, 2018)

KingsX said:


> Anyone here in Illinois ?



I'm from Illinois. The smartest move we ever made was getting out of that place for Arizona back in 1991. We built a home in Lake Zurich in 1985. The property taxes were $2,600.00 a year when we moved in. When we sold 6 years later in 1991, they had risen to over $4,000.00 a year. We just checked the other day, and the taxes on the same house are now *$11,000.00 a year!*

That is insane. Not only that, the schools are going broke, the roads and infrastructure are all falling apart. We could have NEVER retired there, let alone retire at 62. The smartest thing I ever did was move to Arizona. The dumbest thing I ever did was wait until I was 38 years old to do it.


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## Uptosnuff (Jun 17, 2018)

Lethe200 said:


> I think I've posted this a long while back, but it gets updated periodically:
> 
> *State-by-State Guide to Taxes on Retirees
> *Kiplinger.com
> ...



Unfortunately, I live in one of the least tax friendly states to retire in.  Nebraska.  Everything is taxed.  Pensions, SS, 401k, IRA, property taxes.  We are looking to retire in about 3 years and if it were up to me, I would move.  Not sure where, though.  It's not just the taxes, but the weather.  There is no outdoor living here.  It is either too cold, too hot, or too windy to be outside.  We had about one week of nice spring weather here.  One day it was cold - in the 30s and the next week it was in the 90s.  Weather is just so extreme here.  We are the home of the College World Series and I think this is the hottest it's ever been for the series.  We went right from heat to air conditioning without opening our windows.  I hate that.  I would really love to open my windows in the spring and autumn.


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## mathjak107 (Jun 18, 2018)

you have to look at the whole picture not just taxes . i mean ny is very generous with its tax free perks for retirees but you can't compare living in nyc to nebraska cost wise . it really takes a lot of work on what it means to you personally to see what your true cost of living is in these comparisons .


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## oldmontana (Jun 19, 2018)

$11,000 a year?  WOW!

That sounds like in Montana were we have Flathead Lake.  Many people bought or built homes on that lake 30 or 40 years ago and taxes were about $500 to $800 a year.  Today because the price of homes on the lake these same homes have PP taxes of $5,000 or more and people can not afford to live their homes.


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## KingsX (Jun 19, 2018)

oldmontana said:


> $11,000 a year?  WOW!
> 
> That sounds like in Montana were we have Flathead Lake.  Many people bought or built homes on that lake 30 or 40 years ago and taxes were about $500 to $800 a year.  Today because the price of homes on the lake these same homes have PP taxes of $5,000 or mpore and people can not afford to live their homes





That's sad... especially because many of those people are now elderly, retired and can least afford a big jump in property taxes. 
 Even if their house mortgages are now paid off... their current property taxes might  equal their previous mortgages.

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## Aunt Bea (Jun 19, 2018)

It's sad when a person can no longer afford to live in their home but I've never once seen one of these people feel sad about selling a property for many times more than they paid for it.

It's just a fact of life that young or old we need to adjust our expenses to our income.


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## oldmontana (Jun 19, 2018)

Aunt Bea said:


> It's sad when a person can no longer afford to live in their home but I've never once seen one of these people feel sad about selling a property for many times more than they paid for it.
> 
> It's just a fact of life that young or old we need to adjust our expenses to our income.


Money ... that can not make up for people that have spent a good share of their lives building a home they love and have to sell it because they can not afford the taxes and yes I have seen that happen. 

"It's just a fact of life that young or old we need to adjust our expenses to our income."...easy for you to say.


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## Colleen (Jun 19, 2018)

Aunt Bea said:


> It's sad when a person can no longer afford to live in their home but I've never once seen one of these people feel sad about selling a property for many times more than they paid for it.
> 
> It's just a fact of life that young or old we need to adjust our expenses to our income.



I'm not sure how you meant your comment but I took it that you meant...too bad..you should have been more careful with your money. I hope I'm wrong and you didn't mean it that way at all. 

Maybe there are a lot of retirees like me that never had "extra" money to be careful with. It would have been great to have had money to put aside for my "old age", but I didn't. I made enough to pay my bills and get by on. I socked a little away after I retired because I sold my large home with a pool and downsized in everything. I've never been able to pay off a home and will always have a house payment until the day I die. I moved from a state that was too cold and humid for my arthritis and I couldn't shovel snow any more. The west is much better for me but this state is not exactly cheap either. I manage my expenses and I'm able to save money every month.

If I had it to do over again (and knew what I know now...it's that 20/20 thing)...I'd make a lot of different choices in my life, but that's not possible so I do the best I can with what I have. I really don't have any complaints, though...I'm healthy and a little arthritis isn't stopping me from doing anything I want to do. So...what more do I need???


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