The dreaded school tax bill will be here about September 1st. Last year's was $4,400.+. However we were reassessed again(it is a yearly assessment) and they raised our assessment by $ 7500. So we are planning on a $ 4500.+ school tax bill this year. This bill and the property taxes due in January runs about the same amount. We get a reduction from New York State on the school taxes which they call the Star Rebate. They also have a rebate for income qualified people over 65. However we have too much income to qualify for the Senior Rebate. The $4,400.+ bill that I stated above is the amount we actually pay out of pocket after the Star Rebate. The taxes are actually a lot higher.
Our property taxes in January run around the same amount or a little less with no deduction because we do not qualify for any. Again we have too much income to qualify. So you can see that we are paying a hefty amount in school and property taxes a year- about $9,000. Yes, New York state is a high taxed state on everything. But it is our choice to live here so I am not whining.
That said we set money aside all year long to pay our taxes. We invest that money(which is part of our savings every month). However, every year I try to take both the school and property taxes out of current income when they are almost due. That is because I hate the idea of selling investments needlessly. So far we have been able to do that. So for three months before these payments are due, I look to see what we can save from our monthly income each month so that we have enough to pay them. That is one of the reasons I didn't invest any money in July. So we now have the money to pay the tax bill in September. If we were strapped for that money, we could easily take it out of our investments because we save for it all year. Right now we are able to do it this way, so this is what we do because it is just easier. We saved for years and set up and worked for our retirement so that we have many streams of passive income to live off of during retirement. We have also lived frugally for years and cut where we can to make sure that we never run out of money. We have been good stewards of our money. Hubby is just starting his 18th year of retirement and it has been 22 years since I worked. And believe me when I say that we have enjoyed every minute of it.
I know we all hate taxes but they are a fact of life when you own property. A lot of seniors hate paying taxes since they have no children in school. That has been the case for us since 1986 when we put our boys in private schools. So this will be our 31st year paying school taxes with no child in the public schools. Would I like to not pay school taxes? Yes, if I had a choice but I don't. So my taxes subsidize the school system where my neighbors' children go to school so that their parents don't have to pay more in school taxes. But you know what? Seniors have been doing this for years even when I went to school. So we are just doing our part for the system. It's how it works.