[GeoffD]

Originally Posted by Irish49872

Hello everyone, we are a Navy family who have been recently stationed in Groton. We have fallen in love with CT and New London/Groton and the surrounding areas. We are considering retiring here but I am having trouble wrapping my head around the tax situation. I am originally from San Diego so I am used to high taxes. In San Diego a $500,000 home your taxes are roughly $6,500 a year, looking here at a $500,000 home in New London area and the taxes would be $20,330 a year...is that right? Are there any property tax breaks? What am I not seeing? I realize your money goes further here as far as what the amount will buy you I still keep thinking Wow...

You could go just over the border to Westerly RI 20 minutes from Groton. The mill rate there is $12 per thousand. RI has a means-tested $15K Social Security and $15K pension/IRA income exemption from state income taxes. They do otherwise tax Military retirement pay. Depending on how your age and income line up, that can be an affordable place to retire. RI car property tax is almost as crazed as Connecticut so you want to know how that works, too.


If you're Navy, you'd also be closer to the VA in Providence if you ever need it.

[JayCT]

Just to clarify the income tax on Social Security and pensions, you only pay that if your income is over $50,000 for a single filer and $60,000 filing jointly. Check the link below for more information. I know many retirees here who after deductions pay nothing.

Also know that some communities provide property tax relief for retirees. Below is a link to the program and several of the towns recommended here are listed on it. I would still confirm this with the town directly though to be certain you qualify. Jay

https://portal.ct.gov/DRS/Publicatio...e-Tax-Purposes

https://www.cga.ct.gov/2012/rpt/2012-R-0222.htm

[SAE72]

After looking at all the factors involved, I will be retiring right where I am here in CT . Too many positives to consider moving elsewhere . The tax situation, although troubling, is not enough to tip the scales.

[GeoffD]

Originally Posted by SAE72

After looking at all the factors involved, I will be retiring right where I am here in CT . Too many positives to consider moving elsewhere . The tax situation, although troubling, is not enough to tip the scales.

I concluded the same when I left Portsmouth NH for my coastal home town in the South Coast Massachusetts. I'm not in the circumstance where a bit of tax is going to change much. That said, Connecticut has some towns and cities where the property tax burden is quite high even at 70% of the appraised value.

[GeoffD]

Originally Posted by JayCT

Just to clarify the income tax on Social Security and pensions, you only pay that if your income is over $50,000 for a single filer and $60,000 filing jointly. Check the link below for more information. I know many retirees here who after deductions pay nothing.

I presume the OP has a military pension. That isn't taxed at all in Connecticut as of 2015, right?

[JayCT]

Originally Posted by GeoffD

I presume the OP has a military pension. That isn't taxed at all in Connecticut as of 2015, right?

I do not know but the OP can check. I know the New London area has a number of military retirees because of access to the facilities available at the Groton Submarine Base. My cousin's in-laws retired in the area for that reason. Jay

[SAE72]

Originally Posted by GeoffD

I concluded the same when I left Portsmouth NH for my coastal home town in the South Coast Massachusetts. I'm not in the circumstance where a bit of tax is going to change much. That said, Connecticut has some towns and cities where the property tax burden is quite high even at 70% of the appraised value.

Yes, there are high property tax burdens throughout the state. Fortunately , I have no need to down size , as the tax burden is manageable. For many retirees, that can be an issue. Too much house. . Availability of services and the safety of the local community are at the top of my list.

[East of the River]

Mil rates vary so shop around. But also remember to look at property history and assessments. There is kind of a balane between property value and mil rate in CT.

[CTartist]

Originally Posted by Irish49872

Hello everyone, we are a Navy family who have been recently stationed in Groton. We have fallen in love with CT and New London/Groton and the surrounding areas. We are considering retiring here but I am having trouble wrapping my head around the tax situation. I am originally from San Diego so I am used to high taxes. In San Diego a $500,000 home your taxes are roughly $6,500 a year, looking here at a $500,000 home in New London area and the taxes would be $20,330 a year...is that right? Are there any property tax breaks? What am I not seeing? I realize your money goes further here as far as what the amount will buy you I still keep thinking Wow...

San Diego median home value: $567,400
New London median home value: $184,281
Waterford median home value: $260,535
(info from City-Data)

San Diego.....3 bed/1 bath/1450 SF.....$600,000.......$3295 monthly (taxes 625 monthly)
https://www.realtor.com/realestatean...-46893?view=qv

New London.....5 bed/1-1/2 bath/2376 SF.......$200,000........$1406 monthly (taxes 502 monthly)
https://www.realtor.com/realestatean...-65180?view=qv

Waterford......4 bed/2 bath/1600 SF........$269,900........$1582 monthly (taxes 361 monthly)
https://www.realtor.com/realestatean...181257&view=qv


An average house (which looks to be bigger in CT) roughly costs $3295 in San Diego, $1406 in New London and $1582 in Waterford.

The area where you are looking at in CT has bargain basement prices in comparison to San Diego. You need to take the cost of the house as a whole when comparing apples to apples (median home in San Diego and median home in the New London area)

PS: Property taxes pay for the school system for the most part. 2018 School Ranking: Connecticut #2, MA #1. You get what you pay for.
https://wallethub.com/edu/states-wit...t-schools/5335

[CTartist]

A picture is worth a thousand words.