We are distressed about the property taxes in the Sewickley area. We are qualified to buy well above a price point that comes with a level of property taxes we are comfortable affording. Any thoughts to share?
You are not alone in your concern about our local property taxes. They are high when compared to same value homes in many states. But they are commensurate with property taxes on same priced homes in the other top Pittsburgh area school districts. If you want great schools, its just a cost of being in a top district. And if you don’t use our schools, being in a top school district will still provide steady appreciation of what is likely one of your largest assets – your home.
If you are not from Pennsylvania, it might help to frame property taxes as part of your larger tax picture. Our PA state income tax rate on individuals is only 3.08% — much lower than most states. We also do not have sales tax on food or clothes here, which adds up to even more savings. Our yearly vehicle fee is also only $41 – also far lower than most states. Yes, property taxes in highly rated school districts can be high, but overall this is a lower cost area to live in.
Additionally, if you itemize deductions on your federal tax return, there may be a tax savings for you associated with the deductions of your property taxes – they might not actually cost you as much as you think – your tax advisor can help with this.
In the end, most people spend a lot of time in their homes. Your home should be something you love coming home to, love spending time with family and friends in. I suggest you do not isolate out property taxes as the bad guy keeping you from the home you love, but rather look at your entire cost of ownership – mortgage, taxes, insurance, utilities, maintenance — and if the overall package looks manageable for a home you love, go for it!
REAL ESTATE SERVICES
401 Broad Street
Sewickley, PA 15143
Office: 412-741-2200 x238