Tax Burden in Tenn (Johnson City, Kingsport: sales, real estate, rent)

[tampa]

I'm a NYC retiree living in FL and am considering relocating to this area of Tenn. can anyone advise what tax burden I can expect to be paying?

[rccrain]

Lots of people like the 0% income tax, but I don't know that it applies to you. Sales tax on EVERYTHING is 9.75% in JC, 9.25% in Kpt and Bristol. Property taxes are comparatively good.

Johnson City Example:
Mkt Value: $100,000
Total Market Appraisal: $86,600
Assessment %: 25
Assessment: $21,650
Property tax rate = 4.28 (2.35 county / 1.93 city)
The annual tax is $927 about .9% of market value.

Living in the county almost cuts that in half.

Rates for Kpt & Bristol are a little higher.

Bristol = 4.95
Kingsport = 4.83

Source: TN Comptroller of the Treasury - Division of Property Assessments - 2007 Property Tax Rates

[cobolt]

My uncle retired to Paris, TN from Chicago. I don't know what his tax burden is, but what I do know is that he is the most fiscally savvy person I've ever known, and that he researched extensively...for years, before he decided on a place to hang his hat. That man could quote numbers, percentages, etc from 20 years back to now.

Best wishes in your search

[studedude]

Originally Posted by cobolt

My uncle retired to Paris, TN from Chicago. I don't know what his tax burden is, but what I do know is that he is the most fiscally savvy person I've ever known, and that he researched extensively...for years, before he decided on a place to hang his hat. That man could quote numbers, percentages, etc from 20 years back to now.

Best wishes in your search

Like your uncle I've done a lot of research and will be moving to East Tenn, from ILL, shortly. I would consider it a tax blessing not a burden.

[mbmouse]

If you own a house/property here, the real estate tax burden in comparison to a lot of other states (NY and FL included) is VERY minimal. You will happily, with a huge smile on your face, write that property tax check and walk it to the court house yourself and frame the receipt hahahahha especially if you live out side of city limits.

However, if you rent, it may seem like more as the difference in day to day taxes/other expenses can add up even though less for some things. Here are some examples.

Like someone said earlier, sales tax is high, almost 10% on everything including food. This can really effect someone on a fixed income.

If you rent a property verses own, several utility companies require a deposit which can be up words of a few hundred dollars. If you own, and have decent credit, no deposit.

TN has no state income tax, however, some investment/dividend income is subject to income tax.

The cost of other things are much cheaper in comparison, such as.

Car registration in Washington County is $24 per car per year for standard tag (more if you want a pretty one or one that supports a organization) I believe it is about the same rate in Sullivan Co.

Mine and others on this forum have seen hundreds of dollars a year less in car insurance premiums.

Homeowners insurance is also much cheaper, mine went down over a thousand a year here verses FL and that was in 97'! Compared to now, that number would be very plural.

There are no toll roads. No extra school tax. No personal property tax.

I have found gas to be noticeably lower here also. Sometimes close to $0.50 less here than New England.

Utility cost per kilowatt can be lower, but that really depends on where you are coming from and what you currently pay. But I doubt it would be higher, then again TVA is talking about raising those rates soon.

So all in all, it really depends on where you are coming from, whether you plan to own or rent and where your income comes from and not really just the tax burden to look at.

I know that is not very scientific, but hope it still helps.

[SarahSal]

I posted this in another thread but when we left Connecticut in the mid-80's we were paying almost $5000 a year in property taxes for a very old house with acreage. We now have another (similar) old house with 5 acres in Washington County and pay about $800 per year.. If you stay out of the city limits, you'll be in good shape property tax-wise. That is one of the biggest advantages in living in this beautiful part of the world!

[jabogitlu]

Hopefully the OP isn't moving here solely for tax benefits, else he or she runs the risk of being severely unhappy.

[mbmouse]

Originally Posted by jabogitlu

Hopefully the OP isn't moving here solely for tax benefits, else he or she runs the risk of being severely unhappy.

True, very true.

[Ftibss]

-I own property around the SE, if you are considering a move to TN for the tax benefits, and disregard lIfestyle changes then you will be making a mistake- I own property in TN AND FL, and I can you that I still prefer spending more of my time in places like Naples, than places like Bristol, but that's a personal choice in lifestyle and the type of sociocultural environment you want to be around.

Taxes don't overly bother some people- to others it's a determinate factor-

Really, the two areas don't compare very well at all, and it seems that some parts of TN are becoming overly populated with transients from FL anyway, so the area is bound to change. Don't get overly caught up in the hype of TN, or any area

[donsabi]

If you are a retiree on Medicare you should make darn sure you can get an doctor who will accept you as a patient. After six months of trying I pretty much gave up on finding a doctor at this point.
BTW, don't overlook the 9.5% sales tax.
Don