The All-Inclusive Guide to Moving to Brooklyn FI's Favorite Tax Haven: Austin, TX
By Jason Hoffman, CFP
If you’ve ever considered moving to a new city with a lower cost of living, chances are Austin, Texas is on your list! Aside from being a cool city with a unique culture, Austin is also known as America’s tax haven because there are NO city or state income taxes. As Brooklyn FI’s only current Austin resident, I’m going to give you the rundown on everything you need to know if you’re considering moving here!
Austin is a very vibrant city, and generally has an overall lower cost of living than other similar cities with the added bonus of no city or state income taxes. However, there is one caveat - if your dream is to move to Austin and buy a home, you’ll likely still be hit with a bit of a tax burden in the form of property taxes. Property taxes here are pretty high, so you can expect to pay 2% of your home’s value annually in property taxes if you decide to purchase a home instead of rent. This is often what takes most people by surprise when they move to Austin (and Texas in general).
Public transportation in Austin is close to non-existent, and traffic isn’t the greatest either, so picking a well-located neighborhood to live in is an extremely important first step if you want a proper Austin experience! Generally, it is much easier travelling East and West than it is travelling North and South in terms of avoiding intense traffic. At peak traffic times it can easily take an hour to travel 5 miles, especially if you are travelling past downtown. A general rule of thumb is to live no more than 5 miles from your office if you want a reasonable commute in Austin. Be sure to check commute times on google maps because traffic can vary drastically depending on time and what areas you are travelling to/from. The greater Austin area also spans a relatively large area, which presents the question – where is the best area to live? Most of the time tech companies are other key employers are centrally located, but here are some ideal zip codes to keep your home search in that will offer up the true Austin experience that everyone speaks of:
Central Austin – 78704
East Austin – 78741, 78702, 78721, 78722, 78723
Downtown - 78701
West Austin – 78746, 78703, 78731
North Central – 78712, 78705, 78751, 78756, 78752, 78757
For a detailed description of what each neighborhood has to offer check out this resource!
While exploring Austin (and if you move here!) here are some key activities to do and places to visit:
Zilker Park - you’ve likely heard of and seen many pictures of Zilker. Zilker is a 300+ acre park with an amazing view of downtown Austin and is the ideal place to go for a nice morning or afternoon hangout. It’s also a place where you’ll find hundreds of dogs running around and playing which is an added bonus!
Vic Mathias Shores Park (FKA Auditorium Shores) - I recommend coming here at sunset and bringing food + a picnic blanket. As the sun sets you are right on the water with a fantastic up-close view of downtown Austin, and after the sun sets the view is even cooler. This park is also connected to the hike and bike trail which offers miles of walking along Lady Bird Lake and Downtown Austin.
Barton Springs Pool – This is a natural spring fed pool right near Zilker park. The water is clear and maintains a temperature of 68-degrees year-round. You’ll also find grassy hills surrounding the pool which offer the perfect place to sunbathe. The pool is fed by the Barton Creek Greenbelt, which is also a MUST if you enjoy easy hiking with an opportunity for swimming.
Mount Bonnell (AKA Covert Park) – Mount Bonnell is considered the highest point in Austin sitting at 775 feet! It offers a sweeping view of the Colorado River, The City, and rolling hills that surround the city. The climb up is only a 102 stair trek, and I highly recommend coming in the morning with a cup of coffee to sit and drink, or coming in the evening to watch the sunset.
Paddle Board or Kayak on Lady Bird Lake – Lady Bird Lake is a dammed-up portion of the Colorado River and runs right through Central Austin. You’ve likely seen photos of people on the water with downtown Austin views, and this is how you achieve that. The current is slow, so bring your favorite beverage and be ready for a few hours of relaxing floating.
Areas with cool shopping and/or Bars – Walking along South Congress offers up an opportunity for restaurants, bars, shopping, and several iconic walls to take a photo in front of and is a must-do. Everyone always seems to have heard of going to the bars on “Dirty 6th Street,” which DO NOT offer up the best experience in my opinion. If you are wanting a night out, I recommend exploring bars on West 6th street, Rainy Street, and East Austin (East of I-35).
Places to eat – There are HUNDREDS of places to eat in Austin, but here are a few of my favorites to help narrow it down: Taco Joint on Riverside, Veracruz All Natural, Oseyo, Jacoby’s Restaurant and Mercantile, Sawyer and Co., Elizabeth Street Café, Fresa’s Chicken, Terry Black’s Barbecue, Gordough’s Public House, Juliet Italian Kitchen, Loro, and Red Ash Italia.
There are so many unique things to do in Austin that I’ve only scratched the surface - you cannot go wrong no matter what you do! If you are hoping to move here and visit to check it out let me know and we can grab dinner and drinks somewhere fun while we chat about the most ideal neighborhood for you :)