First lets look at sales tax, Kansas State Sales Tax (includes groceries): 5.3% (6.3% after July 1, 2010) (prescription drugs exempt); Cities and counties may add another 3%. In the city of Topeka, where I live the city and county sales tax means I pay a total sales tax of 7.95% (8.96% after July 1, 2010). (Residents with income less than $30,300 and meet other qualifications can receive a sales tax refund on food, when they file their income tax).
Now lets look at Sales Tax in the state of Texas, where the sales tax is 6.25% (groceries/non-prepared food, prescription and non-prescription drugs exempt); local option taxes can raise the rate to 8.25%. Since groceries are exempt, that is the biggest thing I spend most of my money on, so that in of itself will save me lots of money. True, I will be paying over 8% when I purchase furniture and other big items, but same is true here in Topeka after July 1, so actually even with that I will be paying less in Texas.
Now what about the Gasoline Tax, here in Kansas it is 25 cents/gallon, whereas in Texas it is 20 cents/gallon. I don't use Diesel but Kansas charges 27 cents/gallon, whereas Texas only charges 20 cents/gallon. Again, it is cheaper in Texas then in Kansas.
Another item that is taxed in both states is Cigarettes. Kansas the Cigarette Tax is 79 cents/pack of 20. While in Texas, the Cigarette Tax is a whopping $1.41/pack of 20. Though I don't smoke, my fiance does have an occasional cigarette.
Now for personal income tax. In Kansas the state income tax range is from 3.5%-6.45% With income brackets ranging from $15,000-$30,000. There 3 different brackets in Kansas' income tax system and the exemptions are as follows:
Personal Exemptions: Single - $2,250; Married - $4,500; Dependents - $2,250
Standard Deduction: Single - $3,000; Married filing jointly - $6,000
Whereas in Texas, I will be able to keep my money, as there is no No state personal income tax.
No lets move to property taxes. That is where so many people believe Texas will be more expensive. So lets, just look at the real facts.
First we will start with the Inheritance and Estate Taxes, after 2009 the so called inheritance taxes has expired. So as of now, there is no such tax in Kansas. Which is also true for the state of Texas.
Then there is (Real Estate) Property Taxes. In Kansas property tax varies by local areas (as it does in every state), but the average is 1.25% of your home value. Meaning the average home in Kansas is worth $125,700 and would see an annual tax bill of $1,569. Whereas in Texas, there is no statewide property tax, but every local government body (city, county and school) will have property tax. The average tax rate is 1.76%. The average home value in Texas is $126,800, meaning the annual tax on that home would be $2,232.
Real Property figures from MSN
All property is appraised at full market value, and taxes are assessed by local county assessors on 100% of appraised value. The total tax rate is the sum of the rates of all applicable taxing units including cities, counties, schools, and special districts. Therefore, looking at Austin, since that's where I'm heading the property tax rate is 2.2064%, according to the Austin Chamber of Commerce.
Then there is more tax that falls under property tax, and that is the Personal Property Tax. That is the annual tax some states charge on the value of you vehicle.
Again this property tax varies by county as well as the value of your car or truck. I am not sure what the percentage is, but my fiance pays about $100/year for her 1999 Subaru for the taxes and registration. I pay around $200 for my 2004 Chevy.
In Texas, there is no personal property tax, but according to HS who lives down there,
yearly $120 for registration and inspection fee. There is also a 6.5% sales tax, when you purchase the car. However, that is only one time.
According to the Texas Department of Transportation, the fees are as follows:
2004 AND OLDER MODELS.................................................. $40.80With an additional $11.50 collected by Travis County (where Austin is located). Then as HS said there is the required inspections, that are not required here in Kansas. The registration fees for light trucks go by weight and as such are not figured here, but you can see those rates, on the chart provide by the TDOT.
2005, 2006 AND 2007 MODELS ............................................ $50.80
2008 AND NEWER MODELS.................................................. $58.80
So overall, it would appear that as I had figured previously, I would be paying less taxes in Texas, though maybe not as much as one would think, without actually setting down and running the numbers, as I did for this post.
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