Moving to a lower tax State isn't everything (50+, social security, retired)
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Funny, that list could be a clone of what I'd produce if someone asked me "Which 10 states would you never want to live in?" LOL
It's ironic that a friend of mine is planning to relocate (early retirement) to Alabama "because it's cheap and beautiful and doesn't get any snow". She has a history of serious health issues, including cancer twice, and seems totally unconcerned with the lack of really good healthcare there. Boggles my mind.
Even in Birmingham ? Isn't the Univ of Ala @ Birmingham medical center pretty good?
One also has to drill down a bit further to compare what tax breaks (if any) a given state affords to its seniors.
For instance, NY (especially downstate) has ridiculously high property taxes; however, it also gives larger tax breaks to seniors depending on their income. Some other states whose current taxes on a comparable property are only 50% of NY's, give very small senior tax breaks. So when you project the taxes PLUS the senior tax breaks forward in time, it can happen that the higher-taxed region can cost less out-of-pocket for property taxes than the "cheaper" one. And may well have better services and lower crime rates.
For example I'm still mindboggled by the fact that so many parts of the country apparantly only have residential trash pickup once a week (with possibly a second pickup for recyclables). I've always assumed that twice-weekly household + weekly recyclables + free special pickups for large items and yard waste were the norm, because that's the way it's always been in my region. The $300/yr (current) cost is included in the property taxes.
One also has to drill down a bit further to compare what tax breaks (if any) a given state affords to its seniors.
For instance, NY (especially downstate) has ridiculously high property taxes; however, it also gives larger tax breaks to seniors depending on their income. Some other states whose current taxes on a comparable property are only 50% of NY's, give very small senior tax breaks. So when you project the taxes PLUS the senior tax breaks forward in time, it can happen that the higher-taxed region can cost less out-of-pocket for property taxes than the "cheaper" one. And may well have better services and lower crime rates.
For example I'm still mindboggled by the fact that so many parts of the country apparantly only have residential trash pickup once a week (with possibly a second pickup for recyclables). I've always assumed that twice-weekly household + weekly recyclables + free special pickups for large items and yard waste were the norm, because that's the way it's always been in my region. The $300/yr (current) cost is included in the property taxes.
That's true, and while one could estimate their property taxes from 65-75, or however long, you also have to consider that 1) your total property tax burden over those years is going to be front-loaded rather than more even 2) you may die before you get to the "cheaper tail" and thus not reap the benefits. Personally, I'd rather have the smoother curve.
I'll agree that different communities have different standards of what is normal, and property taxes do help fund these increases services, many of which are better schools, which retirees are often not concerned with. In my hometown, the city collects the garbage and that's included in their taxes, but county residents have to pay for private pickup.
For example I'm still mindboggled by the fact that so many parts of the country apparantly only have residential trash pickup once a week (with possibly a second pickup for recyclables). I've always assumed that twice-weekly household + weekly recyclables + free special pickups for large items and yard waste were the norm, because that's the way it's always been in my region. The $300/yr (current) cost is included in the property taxes.
I've never lived anywhere with trash collection that was more than once per week. I've lived in 5 states from the gulf coast to CA. I've also never had trash / recyclable collection included in my taxes. It's always been a private company that charged you monthly, bimonthly, or quarterly. I've seen monthly charges from $15/ month to $45/month.
This list is all screwed up, as they usually are. No where does it cite the sources for it's data or give actual numbers to back up it's claims. It claims TN has "higher than average state and local taxes". Clearly this is incorrect as TN is widely known as one of the lowest taxed states in the country. Also, what in the world does pollution have to do with taxes?? No amount of taxes will reduce pollution. These articles are completely useless.
Taxes [income, property, sales, etc] form a portion of the over-all Cost-Of-Living, everywhere.
However; city vs rural makes a much bigger difference.
To try and average an entire state, into one economic 'picture' will be 100% false.
My home state [California] has a few massive cities, and vast areas of nothing. Averaging them together to make a statistic, is useless.
Where I retired, is the same way.
I have lived in places where my entire pension would not be enough to cover property taxes. But today, I own a huge home with lots of land. I pay no income taxes and our Cost-Of-Living is very low.
These lists, or better yet these list-writers, are ignorant. Because of their ignorance they make false assumptions.
Funny, that list could be a clone of what I'd produce if someone asked me "Which 10 states would you never want to live in?" LOL
It's ironic that a friend of mine is planning to relocate (early retirement) to Alabama "because it's cheap and beautiful and doesn't get any snow". She has a history of serious health issues, including cancer twice, and seems totally unconcerned with the lack of really good healthcare there. Boggles my mind.
Don't paint with such a broad brush !
I was seriously considering NE Alabama for retirement relocation . I am from MN
Yes just like you everybody poked fun at Alabama yet when a Minnesota young college baseball pitcher needed surgery on his pitching arm, it was announced the surgery would be at UAB Medical Hospital
(UAB= University of Alabama Birmingham )
Although Minnesota has lots of great hospitals an Mayo Clinic, he went over 1200 miles to ALABAMA for the surgery.
This list is all screwed up, as they usually are. No where does it cite the sources for it's data or give actual numbers to back up it's claims. It claims TN has "higher than average state and local taxes". Clearly this is incorrect as TN is widely known as one of the lowest taxed states in the country. Also, what in the world does pollution have to do with taxes?? No amount of taxes will reduce pollution. These articles are completely useless.
Tennessee has a high sales tax rate. In addition, the counties surrounding Nashville have some pretty stiff property taxes as compared to the rural counties.
I find it difficult to see how TN is NOT a relatively low tax state. I was wondering if for us, KY would be lower.
So many of these stories are "mailed in" with little research or thought.
and Huntsville is an excellent place. Von Braun etc established a nice community there. Redstone Arsenal. lots of folks who wanted to build a good place to live.
Beautiful river, lots of boating, fishing. easy life. Near Fort Payne AL and the mountains. Near Nashville.
Just to say there is a lot to like about Alabama even though I am not from there.
As others have said, conclusions in these cost-comparison studies are specious at best, and can be outright erroneous.
So much depends on individual circumstances! For instance, a military retiree could live near a military base in a low-tax and otherwise rural and backward state, but enjoy access to good medical care. Such a retiree might be decades away from the senior-citizen age range, where property tax abatement kicks in. A banking executive in his early 50s, retiring with a golden parachute of stock options, might not care in the least about property tax or sales tax, but probably would like to avoid a six-figure annual state capital gains tax. An elderly couple without much of a pension or assets, however, would be far more concerned about medical care, public transit and so forth, rather than taxes.
But there is one important silver lining to these articles: they promote discussion and give us impetus to consider alternatives.
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