No. of Recommendations: 1

I wrote, Now let's consider how much that $750,000 house is going to cost you in property taxes - taxes that aren't going to be deductible on your schedule A under the Trump plan. According to DCAD's property tax estimator page, a $750,000 house in the city of Dallas proper would cost you a whopping $35,394.18/year. (FWIW, that is almost 8 times what property taxes cost me on the east side of Seattle and my house is worth almost as much.)

To which you replied, That seems extremely high (it reflects 4.7%+ overall real estate tax rate); does it consider the homestead exemption?

Oops. No. I forgot to hit that check box. The homestead exemption brings a year's taxes down to a more manageable (tongue firmly in cheek) $28,956.38. That gives you a 3.86% tax rate.

Here's the DCAD estimator, you can check it out for yourself.

Honestly I don't remember property taxes being that much over 3%. But I last owned a home there around 2009. Also I suppose the homestead exemption has a much larger effect on a less expensive home.

If I use my old tax valuation the DCAD estimator gives me an estimate that's almost 20% lower than what I was paying just under a decade ago. Or an effective rate of about 2.50%. I'm pretty certain I was paying almost 3%. But perhaps that's not a fair comparison because home values have gone up and the homestead exemption amount may have gone up with it.

- Joel
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