I live in orange county, CA. $300K will only get you a garage

I’v considered it selling in California and moving to Texas, here are my reasons why I won’t move 1. Property taxes continue to go up with no end in sight with zero or very little control. At the rate Texas is going people won’t be able to afford to live in their own homes. 2. The weather both summer and winter. I live in the Bay Area where it could be a scorching 80 degrees and by 7 PM it’s 72 degrees 3. Mosquitoes, I enjoy going outside without having to spray myself. However if you want to move please do we have too many people here. Just my opinion

Honestly I rather live in California regardless of the cost because it challenges me to do better and not settle. Plus there are way more options in California.

I live in the Los Angeles area and have been comparing home prices here and the Austin, Dallas and San Antonio areas. The only $300,000 homes in L.A are far away from the city. And even then those $300,000 homes are fixer uppers that you would have to tear down and rebuild. It’s sad out here.

In Central California, fresno and bakersfield, you can buy homes for $130,000 with a decent size backyard. And crazy weather will increase your utility cost. CA has stable temperature and you don't have to worry about pipes freezing.

I retired last year after working for an aerospace company for 34 year in California. I sold my home in California and purchased my parents home in Texas after they passed away. Even though my home in CA was a lot more expensive than the TX home, I am paying about twice as much in property tax in TX than I did in CA. Since I am retired I do not benefit that much from no state income tax, other than I do not have to pay state income tax on my pension and investment income. So next year when I do my taxes I will see if it is cheaper for a retired person to move from CA to TX to save money. My crystal ball says it will be about the same if I had stayed in CA. Since I had my mortgage paid off on my CA house my living expenses were not that high, but now I will have to deal with capital gains on the sale of the CA home.

Recently retired, researched moving from Nevada to Texas. No state income tax in either state. Currently live in Henderson Nevada and was researching moving to comparable home (same price) in San Antonio Texas. Here are the results: Nevada Property Tax- $1500 per year. Nevada Property Insurance- $750 per year (total for both- $2250 per year or $187.50 per month). San Antonio Texas, 'Shavano Park' (comparable to Henderson): property tax- $7500 per year and Texas Property Insurance- $2200 per year (total for both $9700 per year or $808.00 per month). Imagine paying more in Property Insurance in Texas than I pay in Property tax in Nevada.

We looked at Texas but we are a bit different as we are retired and don’t pay payroll taxes anyway even here in California. We ended up deciding on Missouri instead as they are at .7% PT. Homes are in the $250-500 k range for 1-80 acres and a 2000-3500 sq ft home on the lake. In towns they have less land and home size but also a lot less in cost too. We won’t have any house payments so that is why we decided on Mo.

Great video. California is well known for its high taxes. But there is no guarantee that Texas won't increase its property taxes in foreseeable future. On top of that, housing prices in Texas continue growing. In California in this case the prop 13 helps. So, it's not black and white. And in general, if more people are moving to Texas, it might see similar problems like in Cali.

There is something called Public improvement district tax that can be added to your property tax, which can be up to $70000. It was on the news from about 8 months ago.

It looks like it's cheaper to rent in Texas versus owning..especially since homes in Texas don't appreciate that much.

Big difference between low prop tax vs income is in CA your prop tax liability will be almost the same when you retire as when you bought your home. While your retirement income will not get taxed at the same rate. Tax liability will be like a few hundred $$$ in difference after 30 yrs regardless whether that 300K home is now worth 900K. Even if you put tons of remodel work, sq footage increases, pool addition install. In TX you're still going to be paying that 2.75% in TX for the rest of your life. Not sure how accurate this is but in a prop 13 debate someone claiming to be a Texan said that in TX home market value/prop tax assessment was outpacing income due to the influx of Californians and tech companies. Also the whole CA income tax thing is overhyped. We're in that $115K-$120K range and no way do we pay that much in taxes. We have always gotten a CA refund of a few hundred $$$.

The problem with Property Tax is that it never ends. If you lose your Job or retire. You are still on the hook for that $10k property Tax. Income Tax stops when you stop making income.

There's a difference from the marginal tax rate and the effective tax rate... California state income tax for a couple making 90k a year is actually 2.81% And after various tax deductions it's even less

Good video but your analysis assumes that there is zero income tax deductions. Someone that owns a million dollar house will have large amounts of tax deductions to bring their taxable income much lower. Property taxes on the other hand, you can't lower with deductions.

Your Analysis looks ok on the surface with assumption that Property is the Primary Residence and there is an income. But It is scary when you buy a property for rental. Now consider this: In Texas You Pay: School Tax, County Tax and MUD Tax (There could be more). Also, For SFR, In Texas there is an HOA lurking everywhere. From a Landlord point of view, Texas is expensive, very expensive. I personally know few people who bought land for future use, then they had to run away because of the Taxes. So, Texas uses property Tax to fund Schools and so many other services. California on the other hand does not fund its services purely from the Property Taxes, for SFR's there is rarely an HOA, and value in of Property goes up very quickly. In Texas, value of property does not go up that much and the reason is Property Taxes. It is true that many people of moving out of California, but it is also true that many people moving into California. Usually, high networth people from Asia, EU and other parts of the world moving in. There is also influx of highly trained scientists and technologists coming in. Most of the people moving into Texas are low/Medium networth. The influx of new comers into Texas will give a boom to the economy in the short run. But in the long run it is going to change the very fabric of the Texas Political System. As to California, 3-5 Million people moving out is a good thing. There is shortage of housing. It will ease the housing crisis. As a whole, the State of Texas is great for business. Business start up and operation costs are very low in Texas and the Government of Texas is business friendly. It is easy to make money in Texas. California on the other hand is not so business friendly, particularly small business.

Can you do a video on owning a business in Texas? You mentioned it in this video briefly.

Property taxes are low in California because the voters passed Prop 13 which limits property tax raises. This was done in the 70s because tax and spend politicians were seizing homes of pensioners and the elderly that were unable to pay massive tax increases as their forever homes increased in value.

Agreed with comment. What kind of home do you get in CA for $300k. I'm in a $300k home outside San Antonio - the house is about 2,000 SF and my taxes are right around $5,500/yr. (Homestead). I don't know CA real estate because I'm from New York & DC where this would be a $1MM home (and prop taxes would be around $15k) plus income taxes - yuck!!. Viva Texas!

I like how you speak slowly and clearly unlike other videos where people rush through their vids. Give me headaches 😅

I'd rather live in a place with low property tax. That way even if I'm out of work I still can afford my house.

A Home that cost 230k in Texas cost 600k or more in California. So Although tax are lower in percentage at the end you pay more in California

Your argument is a false equivalency. Higher property tax values DO NOT equate to higher income. You're leaving one of the most important aspects out: I built a home in 1996 for about $170K. Property taxes that year cost me about $1800. In 2020, property values have skyrocketed, and at the current property tax rates, my home will now cost me nearly $12,000 in taxes. I don't know about you, but my salary has not increased by a factor of 7 times in that period. If wages rose at the same rate as property taxes, my income would have to be OVER half a million per year to match the growth in property values (and their associated taxes). If I were in California, my income tax would be consistent with what I'm earning. Since California property taxes are low in comparison, my tax total (based on your own numbers) would be about $11,000, which is LESS than paying the property tax alone in Texas. In Texas, though, you will eventually be forced to consider moving out of your home simply because you cannot afford the property tax. At the current rate of property tax escalation, my home will cost me nearly $24,000 per year in property taxes within about 6 years. Considering that's the year I plan on retiring, I will not be able to live in the house I have already paid for. Imagine having paid off the mortgage on your home, and you watch helplessly as property taxes grow so much that you can no longer to live in the home you purchased. I would rather pay an income tax with a small property tax, than all property tax. The current system forces homeowners to pay outrageous amounts of taxes regardless of their income level. It is not a sustainable method of raising money for the municipalities. So, if you're moving to Texas, be prepared to be literally taxed OUT of your home. I'd be interested to know how many people moved out of California because they couldn't afford the property taxes.

Great video! You should do one vs NY and maybe a place like GA. I use to live in Atlanta and I wonder how far off the cost is being that it has a similar cost of living, but do have state income tax.

When I was in California, my monthly gas bill was between 500-600 bucks per month. I couldn't afford to live in the silicon valley, so I lived in Stockton instead. My commute to work was about 1.5-2 hours each way. When I moved to Austin, I bought and paid off my 325k newly built home. The same home would cost 1.5 million in silicon valley. The best part was my gas bill went down to less than 100 bucks per month.

On a $70k salary in Texas, Redfin suggests a $250k home. In Cali, it’s like $350k. How big of an effect does the property tax rate have on the value of home you can afford? And beyond that, how much is homeowners insurance?

What a great video. I love to do these types of "what if?" calculations for a lot of scenarios. The answer I haven't been able to find a solid answer for yet is: If my job is based in CA, but I work remotely from Texas, am I paying CA income tax? I believe so, but have found differing answers on this. So, if I own a home in TX and pay CA income tax, it's unfortunately a losing scenario.

Taxpayer live in Dallas .And works w-2 Texas and w-2 Naveda .my question in individual tax this person tax filing federal tax and what?

Something to consider is that if you get a new construction, you'll have higher taxes than the local average. For example, with Public Infrastructure Development taxes and all the other fees you could see a property tax rate that's almost 4%. So, if you buy a house that's only $400K your property tax could be around $16,000 a year. You could very easily be paying more in taxes compared to California. Also, with the income taxes you need to look at your effective tax rate along with any refunds you may be getting at the end of the year.

Sorry, your numbers are off a bit. For example, house purchased 14 years ago for $333k property taxes are $5,600 year now. I think where you are confused is that Proposition 13 limits the annual increase to 2 percent. Our tax bill contains so many add-on’s it just about doubles the actual property taxes. Things like street lights, tons of school taxes, parks, libraries, you name it. When the local government over spends on anything, property taxes, income taxes, sales tax, gas tax, car registrations are increased. Combining Biden and Newsom many Californians will be taxed out of their homes. Income tax is about 10-1/2 percent, adjusted.

The texture on her laptop case and the pillow texture behind her are matching! oh my god!

Your 6% income tax on the 90k per year is the marginal rate, not the effective rate. For example, I own a home in CA in the LA area and have a household income around 140k. I purchased an 800k home. In 2020, after retirement account, SALT and mortgage interest deductions, my effective state tax rate was 2.08% even though I'm in the 9.3% marginal tax bracket. My property taxes were just under 10k. My overall thought is that it depends on your situation and what you want in life. You have to run your own numbers. Many people in CA love living here and make it work by cutting expenses and buy/renting less home. It's a different lifestyle that's not right for everyone.

$300K home here in California is typically either in the mountain towns (which are nice), or if it's on the lower elevations, then it's in cities which aren't nearly as desirable as San Diego, Los Angeles, etc. If you want to be in a more desirable area then you will pay far more than $300K. So, since TX caps out at 10% and CA caps out at 2%, wouldn't that mean that at some point, after a few years, the results would reverse? At some point, if you are paying, let's say 6% property tax in TX and 2% in CA, even with the State Income Tax, you would come out much cheaper in LA over time, yes? Love your channel, btw!

You are also not including deductions on taxes. Which everyone has and it reduces taxes a ton in CA. I lived in CA for 20 years and now in TX for over 20 years. I will take CA property and state income tax combined, any day. I have payed well over 210K on TX property taxes during my life here. That is including all my exemptions. It is the #1 reason my wife and I will move for retirement. You just never get out from under the crazy property taxes in TX. It is like a lifetime mortgage payment. I should also mention that my house appreciation in CA more than doubled in the few years I was a home owner there. The hardest part about being a home owner in CA is affording the house to begin with. After that, and from my XP, living in LA was cheaper. You do get much less, at higher cost, in CA for sure. But again, the property taxes are what is pushing us out of TX.

I sold my Oakley, Ca home and i got new house paid in full in Elyria, OH. No worries just property tax n simple need.

In newer housing tracts in California there is a special tax assesment called Mello-Roos which charges homeowners for neighborhood/ road improvements which could be thousands of dollars extra for many years.

Bottom line: Tennessee wins! No state income tax and very modest property tax...even lower than California. And much cheaper homes.

That’s insane to pay $1100 a month in property tax on 500k house

I have Mello Roos (paid with property tax) in So Cal OC. My total property tax bill is $20k per year, I ain’t scared of no TX property tax :)

Property taxes for homeowners are lower in California because of Proposition 13 voted in 1978. A family that has a $150k income can afford higher property taxes which is offset with no state tax in Texas. That's why Austin is attracting wealthier families from outside Texas driving up home prices and property taxes which does not benefit retirees or average income families. This results in gentrification of neighborhoods.

What if you NEED to get $500,000’s for your home after realtor’s cut? We have a 5bdrm 3full baths 2 car attached garage (back entry by alley), front and back covered porches. Lots of amenities. Fireplace, crown molding throughout, real wood floors, new roof, new paint inside and outside, nice subdivision in great (safe) neighborhood! How do I advertise this Dallas suburban home in California? Would your company of realtors do that as well?

Yes, you can buy a home in California for $300,000. You can also can buy a good size home for $500,000 in California as big as Texas. Please check central California. It all depends on what your income is. The homes here in Austin Texas are comparable to Central California (San Joaquin Valley). Stop comparing small towns such as Round Rock, Cedar Park, Georgetown and Pflugerville Tx to the big cities in California. Austin is very expensive in some areas, downtown, Bee Cave, Lakeway and Westlake. I moved here not because it's cheaper. I came from Fresno California and I did a comparison it was cheaper than Austin Tx (I live in Georgetown Tx near Leander). I moved here 6yrs ago, because my husband from south Austin area. You property taxes are high and don't forget HOA, that can be expensive too.

In today’s market property taxes goes up every year.Yet I’m not selling, why do I have to fight to keep my property taxes down. It should only adjust when selling.

You can buy them in California….. just not near the coast, or big cities. Closer to the high desert and the house may be in a distress state. Number 1 reason is property taxes, and the value, the home value is way higher despite the lower property taxes. Essentially Texas taxes really benefits a certain tax bracket….. so moving to Texas as a teacher and general contractor…. Not worth it in value

The problem in California is you paid property tax of one million dollar house vs in Texas $300,000 with the same size house.

You are rich there. Here is prices same like there ( Estonia, EU ) but family income per year are 36,000 Euro / 38,500 bruto.

Does anyone have a "state vs state" home cost + income tax spreadsheet calculator? My objective would be to enter income, income tax , home cost, interest term, interest rate, home owner insurance costs, hoa fees and the output would show annual tax(income + property) costs and monthly payment for home? Having a breakdown and understanding where my money is going(ie equity in the house or back to government) would be hugely valuable from a state to state comparison.

For retirement, would you rather live in a state with higher income taxes or higher property taxes? You don't stop paying property taxes when you stop working.

Plus Mello Ross tax on top of property tax in California.

Your calculation of California income taxes is off. You need to use average, not marginal, tax rates. Assuming no children or special deductions, the California income tax on a $90,000 salary would be $5,050; on a $125,000 salary, it would be $8,351; and on a $225,000 salary, it would be $17,651.

So does your property get reappraised every year by the county? Do you pay for the county's appraisal?

Just so people know. Almost no one lives in 1,000,000 homes here. The vast majority of people live in houses (in the cities/suburbs) that range from $200k - $350K

Yeah...this confirms my basic analysis. Moving from a 2 comma home here in the Seattle area to a 2 comma home in the Dallas area is crazy. Our property tax effective rate in this suburb is .93% and we have no state income tax like Texas. It's going to cost me more than $12,000 extra in taxes yearly per million of assessed value to move to DFW area. Starting to think I should keep property on the West Coast and rent in Dallas! Love your work here Dana, keep the videos coming please.

The reason California property taxes are low is because of the citizen passed Prop 13 that locks in property taxes at 1.25% of purchase price and caps increases at 2% per year. Cali politicians hate it as they can not override this! The politicians have figured out some minor ways to tag properties but only in fairly minor ways. What this has created is a major reason to stay in your house as homes have jumped in value in many cases doubling in value or more. This means if someone sells their house and they break the $250k single/$500k married fed tax free limits, they are paying over 20% fed and perhaps 10% state income taxes on the excess profits. (For example: house bought in 1990 at $200K, sold in 2020 for $900k & $700K gross profit. Single taxed on $450K for roughly $150K, married taxed on $200K for $60K) I have family in Cali and we know many retirees that are staying in place (30+ years) to avoid this tax as the values reset to current market value on their death and passes to their family with greatly reduced tax burden.

I can own my house outright in Texas. Big savings per month

The average home in bay area is near a million dollars so property taxes are 1200 per month

Very much enjoyed this video!

In many places in California they don't use their heater or rarely use Air Conditioning, there are few toll roads, and you forgot about Prop 13. The challenge in California there are many people/trusts that have own property that is worth $650k but is being taxed against a house value of $190k. Your comparison is based upon a house that is worth less. If the growth of the places like Houston, Dallas, and Austin continue your houses will go up to $500k. Then your Texas tax will be higher.

Texas has the 5th highest property tax rate in the country. You are screwed if you own a home in Texas and not at least 65 years old ( homestead exemption). I just saw my property get appraised for $9000 more than last year and I made no upgrades to it

300k in Ca would be an garage in an very bad shape, just saying...

I also made a video on my channel about them doubling taxes. Thankfully I left CA 3 years ago and it was the best thing I've ever done!

Do you have a video on the homestead exemptions? Great video thank you!

You know the 5 runs N to S right? If I use your directions I'll be moving to Oregon or Washington...😁

love baytown texas

The problem is, $300k doesn't hardly buy you a cardboard box under the freeway in a lot of California.

The reason california had high payroll tax is because of prop 13. In 1978 CA residents voted to destroy the ability of the state to raise money via property taxes, and so the state was forced to move to payroll. This of course serves to transfer the tax burden from old people to young people. Which is why in CA you'll see retirees sitting on 3 million dollar houses paying taxes of 6k a year.

In Texas the middle income and lower income homeowners are worse off while the wealthier homeowners are better off in Texas because their effective tax rate will be lower.

San Diego house prices are one of the highest in CA. 1bd/1ba condo in crappy areas easily go for $400K. If one has Mello Roos (new development), then property tax can easily be 2%. If one's not working and on gov't doe (ie, retired on SS), Commiefornia is better.

You want to know property taxes I have a rental near Huntington Beach not in Huntington Beach its 6 miles from the water. I paid it off 3 years ago and valued at 745,000.00 I'm in prop 13 status and only pay 1300.00 a year Its been in the family since 1970

Hey Dana, after all the tax breaks..What would seniors be looking at on property taxes on a 500k home in the suburbs/nice area of San Antonio like Helotes or Hollywood Park?

You can find a fair amount of $300k homes in many rural areas of NorCal where I’m from. Most would be considered modest to nice homes. How prevalent are PID’s in new housing developments in TX?

It doesn't matter either way we're getting robbed...😠

I'm in CA and I pay through the nose on property taxes. There's a large difference between those protected by Proposition 13.

How about compare Texas vs California for retirement income ppl.

Hi there , It appears in my knowledge recently that Denton county in Texas has low property tax rate, almost (1.5%) vs Collin county (2.5%) . Is that true?

It takes money to run a state. No state income tax? Then they'll have to find some other way to squeeze it out of you. Texas use to be a really good deal. But as Texas becomes more popular and with what seems to be a pro-growth agenda of your state, all I can say is good luck. Californian here, I've lived through it...

California new neighborhoods have a tax rate of almost 2% because of Mello roos

To each their own , California is upfront about what they Tax you , Texas just tries to be discreet about it. If you love Texas stay there if you love California stay. Oh yeah you can find homes for $300k plus obviously if you go closer to the major cities you are gonna pay more just like going towards the major cities in Texas.

Take all my money. I will happily pay an extra $300 to live in CA over another state. The lower range homes are out there, just not all in San Diego. The supply of homes doesn’t meet the demand, which is why prices are high. My husband and I just bought our home an hour outside of San Francisco. Low 300k. When not telecommuting we work in the city. Together our income is mid 100k. Our home is 1500sq ft. 10k sq ft. plot of land. Buying our home (place, size, cost everything) was strategic because it’s important for us to have our home paid by the time we retire, which we finally got the guts and took the plug to purchase when we were 29, so we are on track. We also wanted to ensure the continuity of mortgage payments if something happened to either one of us. I can easily cover the mortgage, so can he. My grievance: states like CA and NY are saddled with paying most of the federal income expenses. We pay more in federal taxes then we get back. Alabama gets more than they pay. Together, my husband and I pay well over 1k a month in FEDERAL income taxes. THIS needs to stop.

California appears to be reserved for the rich business owners who can use deductions to offset taxes. Texas is great for the lower-middle class to be able to get good schooling and larger homes.

So what your saying is California is much cheaper because I will always pay taxes on the $300,000 and Texas will be more expensive every year! Can't imagine Texas taxes after 10 or 20 years of home value increases. Holy cow!!!

Would love to see this video vs another no income tax state like WA.

Income tax isn't relevant to seniors in either state.

California homes have more demand than Texas homes because of the higher comfort index in California. We don't spend much for cooling or heating in CA. I wonder how much Texans spend on, especially cooling, energy in their big homes?

You get what you pay for.

As a 49ers fan I would love to live next to cowboys fan😁

Austin property taxes are sky high there a hidden propriety taxes from these developers ! Always crunch the numbers before moving out of CA 🇺🇸❤️

90k combined income🤯 omg I guess pay is low?

Give it 4 yrs and see where out taxes end up. Be the same as cali

on a 2,800 sq. ft house what would the heating and AC cost be?

Very interesting

homes in Texas are bigger too!!

You get nothing for all the taxes you pay in CA. In CA add in private school for the kids, gasoline tax, crazy high water and electric(if it's on) bills and a good security system for your $650K house next to the homeless encampment. Oh yeah, insurance of all types is much higher in CA. I could go on and on! Texas is looking mighty good to me.

Great video!

Please stop moving to Texas 🥺

In term of taxes , may not be OK for moving there to retire ?!

Wow! Quite interesting!

225k household income buy $1MM houses? Wow people really stretch their budgets

Property tax Is low because land values are off the charts in ca.

Cali has other free public services you didn't mention.