After their child moved near Madison, a couple decided to organize their home, which was a 40-minute drive away, and relocate into their child's neighborhood. Their goal was to sell their five-bedroom single-family home and move to a house that required less maintenance, but they soon realized that Madison was an area where they needed to consider property taxes first.

• Single-family home - Spacious with many rooms, but property taxes and heating costs increase proportionally with size.
• Townhouse - Shared wall structure reduces heating costs, and the HOA takes care of exterior maintenance.
• Condo - Least maintenance burden, but the HOA fees should be considered in relation to the purchase price.

According to actual transaction data for Dane County, the median effective property tax rate in downtown Madison is 3.62%, which is quite high compared to the national average. Residents aged 65 and older with low income can apply for the Wisconsin Homestead Credit and receive up to $1,168 in income tax refunds for the 2025 tax year. If property taxes are burdensome, there is also a property tax deferral loan program operated by the Wisconsin Housing and Economic Development Authority. Madison also has a senior property tax assistance program that, if eligible, allows the city to pay part or all of the property tax on behalf of the resident. Since Wisconsin has both state income tax and property tax, those moving from other states need to recalculate their overall tax burden. Fortunately, there are various relief programs available, so matching income and age requirements can help reduce the burden more than expected.

The next thing the couple considered was heating costs. The average electric rate from MGE, or Madison Gas and Electric, is 20.39 cents per kWh, with a monthly average bill of about $104.39. Wisconsin winters are long and cold, leading to increased usage of heating gas. In a single-family home, the need to adjust temperatures in each room results in higher usage, while condos and townhomes tend to have lower heating costs due to their smaller area and shared wall structure. Madison is a city by the lake, so the damp cold lingers during winter, and heating a five-bedroom house requires frequent checks of the heating system. If the boiler is old, the timing for replacement should also be considered. A significant advantage of condos or townhomes is that most of these large expenses are pre-funded through the HOA budget, preventing sudden large outlays.

In terms of sales prices, the median price for single-family homes in Dane County is $514,900, while the median price for condos in downtown Madison is $335,250, and townhouses are $319,950. This means there are definitely more affordable options compared to single-family homes. Madison consistently sees a supply of condos, especially near the university and lakes, so well-maintained new condos often come on the market. It's advisable to check not only the price but also the recent remodeling status. However, there are HOA fees to consider; the median HOA fee for Madison condos is about $300 per month, while townhouses are around $346 per month. Considering the cash left over from selling their single-family home, moving to a townhouse would still allow for a comfortable living expense, and even with the added monthly property taxes and HOA fees, the total expenses would not significantly increase compared to their previous home. Since they were moving closer to their child's neighborhood, they also looked into the school district, noting that district boundaries can change annually, so they verified the assigned school based on the property address.

Ultimately, the couple decided to move into a townhouse within their child's neighborhood. By selling their single-family home, they secured a lump sum and calculated their monthly property taxes and HOA fees, making it much easier to plan for retirement funds. However, since property tax rates and relief programs vary by county and income criteria, they were advised to check with the city's assessment office before applying.

This article is not investment or legal advice, and it is recommended to consult real estate and accounting professionals before making any contracts or applying for tax relief.