Texas' 2023 Property Taxes Reveal It's More Affordable To Own A Home In California
Deciding where to live depends on so many different variables, and for Americans, one of the most important factors is state property taxes.
In a recent study by WalletHub, experts ranked all 51 states and provinces in the United States to find where the lowest real estate tax rates are, and Hawaii’s (No. 1) .29% and Alabama's (No. 2) .41% topped the list.
However, another revelation might make Californians migrating to Texas think twice before making the move. Despite the median home prices being lower in the latter, the property tax rate is actually much more affordable in the Golden State than in Texas.
The financial experts analyzed U.S. Census Bureau data to determine the average real estate and vehicle property taxes for each state. Texas ranked 46th out of 51 with a 1.74% tax rate, whereas Cali maintained a pretty high ranking in 16th place with a .75% effective rate.
Despite Texas' median home value of $202,600 trumping California's value of $573,200, the pricey property taxes outshine the state's famously-cheap real estate prices.
Nonetheless, that doesn't seem to stop Californians, as it is estimated that out of the over 880,000 people who have moved to the Lone Star state in the past few years, one in every ten persons is from California.
Perhaps, Texas' overall lower cost of living compared to Cali is what has people moving here. Or maybe it's simply because Texas has so many iconic qualities (H-E-B and Tex-Mex food, for example) it's hard to stay away.
We definitely know, though, that it's not because property taxes are cheaper.
This article's cover image was used for illustrative purposes only.