If we compare growth trends, politics, real estate, and taxes of California vs Texas, we will discover many similarities. Since California’s growth happened thirty years prior, what happened there might provide clues as to what the future may hold for Texas.
One of the biggest differences between California and Texas is the tax policies. California implemented Proposition 13 in 1978 which limited (1) the amount of property taxes that could be assessed and (2) the rate at which those taxes could be increased each year. Californians also have state income taxes.
Texas property taxes are 2-3% of the assessed value, with no state income tax. When one compares the two systems, is quickly apparent that Californians pay more in combined taxes. This may be one of the major reasons so many people and businesses are leaving California for Texas.
Charles Lewis is a REALTOR® in the Austin area. He helps people all over the greater metro area buy and sell houses. Schedule a no-obligation phone call to find out he can help you accomplish your real estate goals.
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