Living in Texas VS California | TAXES
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- Опубликовано: 22 май 2024
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00:00 Intro
00:49 LA taxes
02:05 ATX taxes
03:15 Thoughts
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Sources:
www.realtor.com/realestateand...
www.bls.gov/regions/west/news...
data.bls.gov/search/query/res...
www.bls.gov/cex/
www.bls.gov/opub/reports/cons...
www.bls.gov/news.release/cesa...
www.borowitzclark.com/just-ho...
www.google.com/search?q=austi...
www.avalara.com/taxrates/en/s....
www.avalara.com/taxrates/en/s....
www.census.gov/quickfacts/fac...
www.census.gov/quickfacts/fac...
webapp.ftb.ca.gov/TaxCalc/Hom...
www.realtor.com/realestateand...
www.bls.gov/regions/west/news...
www.spyglassrealty.com/blog/a...
www.austinchamber.com/economi...
smartasset.com/taxes/texas-pr...
*Disclaimer: neither this video, nor any content produced by Caleb Hammer should ever be considered investing advice or official financial advice. All content is made for entertainment and educational purposes*
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My only problem with this video is if you go into like rural urban areas homes were far less than in the cities from your average home in Austin being 639,900 and LA being 998,000 from places outside the cities average house back in 2016 was about 200,000 - 300,000 in Texas where as in CA it was 600,000 - 800,000 and its not only that but the fact you could buy a better home in Texas than CA for lower prices. A dinky tiny POS for 600,000 opposes to a nice big house with some land for 300,000 This is what really attracted people to Texas and less restrictions on 2A cheaper gas. The schools are shit..........................Don't get me started
Former Californian, the math is right for what it is, but couple things to take into consideration.
1)You mentioned what the average person pays in transportation(gas) which isn’t quit accurate for California, since it has the highest gas tax in the nation. Californians pay closer to 6% on gas. Also that 6% is based off the gross. So off the top before they take state income taxes which Texas doesn’t have
2) Also utilities, which Texas wins HANDS DOWN. Electrical, gas and water are significantly cheaper. Multiple utility companies in Texas while in California PG&E has the monopoly
3) we also have regulations and fees that are not considered taxes ie fees on plastics (plastic bags, straws), car smogs which are heavily regulated, California Disability, CAMeD which all comes out of our paychecks ALONG with CA state income tax. And from what I’ve heard they’re trying to implement a single-payer healthcare system in California along with a hefty increase to min wage
4) I see people commenting on toll roads in Texas n Florida. Gas taxes are supposed to be used to maintain the roads but California has a reputation for having incredibly unkempt roads. I can personally attest to this
Man, you left out an ENORMOUS benefit that California has, Prop 13. That sets it apart from texas by leaps and bounds. Prop 13 makes it so your property (EDIT) value assessment is no greater than 2 percent per year from the initial sale/assessment, no matter the actual increase in market value. It even has an amended prop 8 that lets the owner claim a lower value in cases where value decreases.
I’m surprised you didn’t mention CA Prop 13, which is a game changer for older homeowners.
I’d also consider toll roads taxes. I HATE toll roads
SAME. So many in ATX
I've never been in a toll road in California except for bridges
I hate having to pay tolls in places I don’t live, so I always take backroads instead whenever I can. They actually make sense because it forces people who use the road to pay for it, rather than raising everyone’s taxes. But usually they’re funded through debt and tolls, so taxes still go up anyways.
Legal highway robbery
@@JonathanTheZombie yeah id rather have the tax and not have then always raise the price every year till it feels more like robbery like i hate weeks i have to commute
across the golden gate or marin bridges for reasons.
I like your content. Just watched a few videos.
Suggestion: when discussing numbers, can you leave them on the screen for longer and/or display to full comparison at the end of your video, or even during the video. It'll make it easier to follow your reasoning.
Yeah for sure, I've been trying to improve this in the most recent videos :)
Some things you didn’t include from California. The taxes hidden in gasoline which make their gas costs extremely more, The taxes on plastic water bottles, automobile registration costs are about 10x more annually and rent costs which are much more just to name a few. All those costs equal higher cost food and other items as well.
I'd like to see you break down international taxes compared to the United States. For example, I live in Melbourne, Australia and we'd be pretty comparable to LA without the crazy taxes involved.
oooo that is a very interesting topic!
Yes and I live in UK close to London
I wish my property tax rate was .71%. I live in Contra Costa County and we pay out the nose for property tax (same house cost and tax you quoted for Austin), AND pay CA state tax AND a 9.75% sales tax.... The only saving grace is that the property tax bill will be fairly stable, thank god for Prop 13. If you're just a normal working person who manages to jam their foot in the real estate door, it's a godsend.
This was great, make more!
This is an interesting topic and one I've considered before because I've lived in both states. Just remember that if you get stuck with a ridiculously high property tax bill in TX, but values were inflated and have since gone down (as is the case right now), you can challenge that tax bill and have your city reassess your property.
Doesn't this incentivize people to want to live in a worst neighborhood so their property taxes don't increase?
In certain areas (El Paso, cough cough) they are trying to be slick. They literally doubled our homes assessed value so they could hit us with a higher tax bill. . . It is insane some of the things they try to do. Our house went from being valued at $120k to $260k in ONE year. . . yeah ok. .
Challenging the assessments are a must. Problem is that Texas gives many exemptions and exempt folks never dispute, the county assessors then point to their homes as comparables.
LA resident here. What most surprised me by this comparison is that average wages are noticeably lower than Austin, yet the average residence is about 50% more expensive here. How does anyone afford to live here? lol
He didn't use the average, he used the median. There is a SIGNIFICANT difference between the two. Considering LA is home to hundreds of multimillionaire and billionaires, it would likely skew heavily towards LA having a higher average income.
Great video!
I look forward to all your videos. I love the facts keep up the great work. Give me more.
Thank you so much 😊
Going from LA to Florida I was not expecting to have to pay toll roads until I got here 😵💫
NEW VIDEO LETS GOOO
LETS GOOOO
Too humid!!
x-amount you "lose" to taxes... hmm... I've heard this phrase before, why are taxes seen as something so negative? With a half decent government those taxes help with infrastructure, schools etc.
Not that I'm fond of paying taxes. lol I do prefer to see both sides of the medal.
Would really love for you to do one of these for the major city in most states. We moved to Denver from Texas, and everyone said we were screwed because of the higher taxes not just in Colorado but in the city of Denver. But my partner and I also both found jobs that pay a lot more so we actually habe slightly more expendable income, even after taxes and higher cost of living. Not sure if that's the norm or if we just got lucky??? Would love to see a breakdown haha.
I don't think household with the median income of 65-75K own houses in the 600-900K range be it in LA or Austin. They would own houses in the 150-400K range depending a significant share of them would rent.
Actually official data (www.census.gov/quickfacts/fact/table/austincitytexas,US/PST045221) shows that median house value in Austin is 381K (for 79K household income) and for Los Angeles that's 701K (for 69K household income).
And then you have your explanation. It is much more doable to buy a 381K home with 79K income than a 701K home with 69K income. Before interest raise, it was fairly doable in Austin, but not at all in Los Angeles. So what drive people to come for me is the affordable housing.
YOURE THE GOAT
Thank you so much!!!
Yeah... my home is paid for and they keep telling me my house value is going up.... 3K is what my property tax is up to now. Last year... it was 2.8k.
I would like to see what it's like for the people in the top 25% as they seem like the people more realistically purchasing the median priced houses at this point. Probably better for those in Austin, but there are a number of caveats outside of the data that would still make LA more enticing for many people.... Would love to see the perfect work from home city, comparing rent vs buying, maybe incomes of 50K/75K/100K.
100% I'm going to make that video :)
Most people who make median in Los Angeles don't own property. Most people who are HHI I know in L.A. employ strategies to reduce their tax load, especially with the new laws recently passed with regards to pass through entities.
This is such a great video. First, almost all the CA vs TX videos include political propaganda, while this is just an Apple-to-Apple comparison on taxes between two cities. In addition, most people didn’t realize that when a state doesn’t charge income tax, they will make it up in a different way, such as property tax. The tax structure in Texas obviously favors the mega rich, but not necessarily an average middle-class citizen.
For the consumer spending this doesn’t account for the cost of gas making the transportation costs higher in California. Also the 21.5% average income that was spent on consumer goods was higher in Austin because a higher salary was used. The salaries should be equal for a more accurate video if we’re purely focusing on taxes.
Lol Cali isn’t bad! Come to CT. Paying 10k/yr on a 450k house. Roads are crap and it’s beyond hot in the summer and brick in the winter.
Where in Austin metro are property taxes 1.77%? I'm in far NE Travis County and we're at 3.1%
Can you do a ny vs Florida video
houses are way too expensive in LA. Unless you live in riverside or sacremento
Yeah, absolutely brutal!
What about gas tax, dmv fees, utilities medium mortgages prices total (total living expense) not just tax.
Oh absolutely. Lots of stuff to add up, but this video only covered this specific topic.
@@CalebHammer ah I see I think adding all those up it’s still cheaper to live in Texas right. Maybe Austin is a bit more expensive than most places tho lol
@@spittin Yeah, maybe! I think it would be fun to go in-depth on those as well!
@@spittin NOPE
Translation - If Yr Rich AF Live in TX (SO many celebs live in Austin now!) Middle & Lower-CA!
Please make that video you suggested at the end
This seems to imply that it’s harder to be a retiree in Texas than California since you don’t have much income but still probably own a nice house. It would be interesting to see that comparison.
Best thing be to make lots of income in Texas and live in small cheap house then move to California for retirement in big expensive house.
Also in California your property tax stays at your purchase price. Insane given how much RE had appreciated
You benefit more from buying your house in California early on so property taxes remain low on your house
For the "median" everything with the only variable being CA vs TX. That's why you earn income in Texas but own property in Hawaii.
Both states have their ways of taxing you. Texas is cheaper cost of living but not nearly like it was in the past. Lots of areas in Texas now charge California prices.
So if you’re just renting in Texas and not paying that ~11k + property tax then you’re chillin.. no state income tax.. and lower sales tax.
Compare NY (NYC) and IL (Chicago) to Texas.
❤
Did you just say a person making 65000 a year can buy a home close to a million dollars?
Texas tax structure, and real estate seem better. $65k is the median household income in LA and the median priced home is almost a million. Since that's the median, in reality a household needs to make at least $220k in California to afford an $880k home. Only 16% of people in California can buy a median priced house, and the quality of housing is pretty bad because the city and state have blocked construction for decades.
In general, the Californian tax system is structured in a way to subsidize the property owners who bought houses a long time ago. As their property values sky rocketed, their property taxes stayed locked in because of a 1978 law called Prop13. We have a lot of million dollar plus homeowners that are paying only $1-2k+ in property taxes. The only time that'll update to current market rates is when the home is sold. When property taxes are so low for "millionaires on paper" you need to offset infrastructure costs with really high income and sales tax. My sales tax in LA County is 10.25%. In general, I would always bet on the state that builds rather than the one that artificially restricts supply to drive property values up.
Where are the sources for these numbers? All I see in the description are plugs for your other shit
Scroll down
Not everyone needs to own a home
Yeah this video goes to show you how easy it is to get the populace to think they’re getting a deal due to no income tax.
The median income in Texas is also 10k more which is nice
Austin has a pretty darn good median income.
Considering a lot of the Austin taxes were from property tax, I would assume looking at the same situation, but for renters Austin could be the better move. Not sure though, obviously depends on rental rates I suppose.
Yeah, that would be good to look into!
Wouldn't the renter just be reimbursing whatever the landlord pays in property taxes through the rent charged?
@@darkpraxis Very good point. This is partially why we've seen huge spikes in rent in Austin.
@@darkpraxis Sure, but not $11,000 worth of taxes, or even $6000 worth assuming that sized home can be rented to two separate renters. That’s $500 extra per month which is a huge increase. Austin rent isnt THAT high
@@saraashkir5793 I'll admit, I don't live in TX and am not familiar with their tax laws, but a quick google search says homes have to be reassessed at least every 3 years in the state. So the recent market spike in home prices won't affect all homes for another year or two. If I were a real estate businessman in that area, I'd be thinking long and hard about how to make up the losses from current or future taxes on the increased market value. I'd either sell the property at the new market value and invest the profit in something else, or raise the rent gradually on current tenants until it covered all of the new tax liability. Either way, tenants will foot the bill in the end.
Great video. I'm from California and I vote to tax the rich to help the poor.
Encouraging economic growth and improving financial literacy would do so much more than to take from Peter to pay Paul. Our federal government already allocates the vast majority of our budget to "payment to individuals".
💯 % agree with the other guy. Taking from the rich to help the poor when they can’t help themselves with simple financial literacy is a dead end. I think. But what do I know.
That's why your state is garbage
It seems like if you are high income, with a reasonably priced home, then Texas is the way to go.
Yep! Probably!
You’re stuck with the Texas property tax, but we have control of our California spending. Like taking possession of your new car in Nevada to save on the sales tax. Also, there are actually two Californias. Southern Cali, liberal. And the conservative inner and northern area. Which will someday break away from the southern half and become the great State of Jefferson. We’ve even got a flag, green and gold, very pretty. Texas would be much nicer if it weren’t so full of damn Texans. ( Except you, sweetie, you’re cool).
hahaha, thank you
That's what I said about California bunch of weirdos. Technically Austin is mini California.🖕
This has to be a troll comment.
Watch out, facts tend to have a liberal bias so if you try to be objective in a video you'll anger conservatives.
Damn, LA's property taxes are lower than Cleveland Ohio.
You serious? I thought it was way cheaper in Cleveland?