I am a California transplant and I LOVE Austin, Texas. My family plans to put down long term roots here. I have sold real estate in both states and am currently working in the Austin market. Since so many Californians are making the jump to Texas, I am offering up 'things to know' for the California to Texas home-buyer.
Of course, the first post is on taxes! I am not a tax professional nor do I play one on TV, so always consult your tax specialist. As most people are aware, Texas has no state income tax (yay!). So that is going to have a big impact on you high-earning Californians. However, those who have owned real estate in California will also notice that there are some differences in property tax.
The California state property tax is 1% with small local add ons. That property tax reassess upon resale and then for the most part stays put until the home is resold or there is reason to reassess. In Texas the property taxes can vary greatly. in the Austin area you will find they hover around 2% and higher. But here's the kicker...they are reassessed every year! Just something to be aware for when you make the big move. If the tax assessor believes your property value has gone up you could see it reflected in your annual tax bill.
Talk to your CPA or tax guy about Trump's changes to the tax laws (re: mortgage interest and state income tax deductions) and see how your move to Texas might soften the blow.
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