Durango real estate agent Jon Burden of Woosa Properties, who works with Texans relocating to Southwest Colorado, compared the tax burden on a hypothetical $900,000 Durango home with an equally priced home in Frisco in a July 20 video.
Burden also addressed insurance, utilities, rural property maintenance and the lifestyle trade-offs buyers should consider before relocating.
How the tax math works
Burden estimated annual property taxes of roughly $14,500 to $15,500 on a $900,000 Frisco home after homestead exemptions, compared with about $3,200 on an equally priced Durango property. He said some new-construction districts in Texas can add thousands more each year.
He then applied a 4.4% Colorado income tax rate to $150,000 in taxable income, producing a $6,600 state tax bill. After accounting for that amount, Burden estimated the hypothetical Durango household would still pay about $5,200 less per year in the taxes included in his comparison.
He placed the break-even point at about $270,000 in taxable income.
“Below it, Colorado wins. Above that, Texas wins,” Burden said.
The calculation is illustrative, not a universal comparison. Actual bills depend on a property’s taxing districts, assessed value, exemptions, taxable income and household circumstances.
The costs beyond taxes
Burden acknowledged that groceries and gasoline could cost more in Durango. Homeowners insurance can also be expensive on forested lots, while rural properties may require wells, septic systems, propane, snow removal and additional land maintenance.
Cooling can cost less because many Durango homes do not have air conditioning, Burden said. He contrasted North Texas’ triple-digit summer heat with Durango’s cooler nights and four-season climate. He also pointed to the Animas River, more than 150 miles of trails in and around town, national forest access, skiing, fishing and hunting.
The mountain-town premium makes the most sense for buyers who place a high value on outdoor recreation, Burden said. Buyers who do not may find more housing value elsewhere.
Texans considering Southwest Colorado can view Burden’s relocation resources and property listings through Woosa Properties.
Provided by Dallas Express
