Retirement taxes in California (Albany: 2013, mobile home, purchase)

[davephan]

How high are the retirement taxes in California? We will have income from pensions, SSI, and retirement accounts which will provide us with a six figure income stream. I also understand property taxes are very high unless you home value is very low, such as a mobile home in a senior trailer park. We are used to paying high income taxes in Minnesota, which is supposed to be one of the four worst states for retirement taxes. Minnesota taxes on pensions and SSI.

[NoMoreSnowForMe]

I'm on SSI. It's not taxed at all.

Why don't you call the franchise tax board? I see they even have a live chat option:

https://www.ftb.ca.gov/forms/2013_ca...emptions.shtml

[cb73]

Property taxes are set by each county--but, yes, taxes are due even on the mobile home. They're called in-lieu tax fees--nothing is tax-free in California.

California has a state income tax, with rates going from 1% to 12.30%. Here are the rates:

https://www.ftb.ca.gov/forms/2013_Ca...emptions.shtml

[thelopez2]

Property taxes are right around 1.25% but if you are in a mobile home, you are also paying rent. Some countries participate in bringing you property tax base with you, I'm so far from retirement I've never researched it .

[kettlepot]

No special dispensation is given for retirement income. I believe it is all taxable once you get over the personal exemption and standard or itemized deductions. You might prepare a mock Form 540 to get a sense of what your tax bite will be.

Property taxes are not set by each county, though each county is the collecting agent for them. There is a 1% tax on the assessed value plus additional taxes and fees approved by voters of various taxing bodies. Voters in some area approve lots of bonds and fees. Voters in other areas are more careful about what they approve.

Homes built after the mid-1980s will often have Mello-Roos taxes, which are assessed to pay off the bonds used to build the streets, roads, sewers, water mains, sidewalks, libraries, and fire stations required by the new subdivision. These bonds usually have a 30 or 40 year maturity. Therefore depending on the age of the property, the Mello-Roos taxes could expire sooner or later.

[John7777]

Originally Posted by davephan

How high are the retirement taxes in California? We will have income from pensions, SSI, and retirement accounts which will provide us with a six figure income stream. I also understand property taxes are very high unless you home value is very low, such as a mobile home in a senior trailer park. We are used to paying high income taxes in Minnesota, which is supposed to be one of the four worst states for retirement taxes. Minnesota taxes on pensions and SSI.

Just start with the proposition California would like to have all of your money. You won't be too far from the truth. Property taxes are around 1% of the purchase price of the home.

[eccotecc]

Most people who reside in California are either wealthy enough or poor enough to live in this state.

[NoMoreSnowForMe]

Originally Posted by eccotecc

Most people who reside in California are either wealthy enough or poor enough to live in this state.

LOL! And the people in the middle pay the bills...

[volosong]

Originally Posted by kettlepot

No special dispensation is given for retirement income...

Essentially correct, but with NoMoreSnowForMe's addition that social security benefits are exempt from income taxation. All pension, investment income, 401k/403b disbursements, etc. are taxable as income.

This web page from Bankrate give a decent summary of California taxes.

http://www.bankrate.com/finance/taxe...alifornia.aspx

[Plantweed]

Originally Posted by davephan

I also understand property taxes are very high...

It's all relative. California property/school taxes are about a THIRD of what we pay in the Albany, NY area: $7000+ on a 2000 sf home.