Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
NC does tax pensions unless it falls under the Bailey Decision ruling.
NC just recently (last year?) changed their income tax and sales tax, that quote is out of date. Although the basic point about income tax still applies especially if you have over about $50k income (SS + pension). They now have a significant income exemption, especially if you are married filing jointly. See the NC tax website.
Some NC info, Effective for tax years beginning on or after January 1, 2014. DOR Web Site
Some of the remaining deductions include:
Social security income
Interest on certain bond obligations
Bailey retirement benefits
Previously there were 3 rates, now there will be a flat North Carolina tax rate:
5.80% effective 2014
5.75% effective 2015
Increases the standard deduction amount to:
$15,000 for married filing jointly
$12,000 for head of household
$7,500 for single or married filing separately
So, if a married couple has $24,000 SS and $15,000 pension; they pay zero state income tax.
Sales tax changes:
No rate change, existing 4.75% plus 2.0% in most localities (6.75% to 7% total).
Sales tax on food seems unchanged (typically 2.0% total)
Adds 4.75% tax on service contracts.
Some NC info, Effective for tax years beginning on or after January 1, 2014. DOR Web Site
Some of the remaining deductions include:
Social security income
Interest on certain bond obligations
Bailey retirement benefits
Previously there were 3 rates, now there will be a flat North Carolina tax rate:
5.80% effective 2014
5.75% effective 2015
Increases the standard deduction amount to:
$15,000 for married filing jointly
$12,000 for head of household
$7,500 for single or married filing separately
So, if a married couple has $24,000 SS and $15,000 pension; they pay zero state income tax.
Sales tax changes:
No rate change, existing 4.75% plus 2.0% in most localities (6.75% to 7% total).
Sales tax on food seems unchanged (typically 2.0% total)
Adds 4.75% tax on service contracts.
Don't misunderstand but that 15k threshold isn't hard to top. Pension income includes 401k and IRA plans as well as traditional pensions. In our household we could have easily 60k in pension per year before we talk SS.
Quote:
Originally Posted by Beach Sportsfan
Those stats still don't compare favorably for NC when you compare them to nearby states.
Beach you are very correct on that but before we say it is bad all around taxes are not the only consideration. For anyone looking at this discussion about taxes NC's tax structure is good. SC is lower in income but has a higher sales tax. TN is lower all around as is GA. VA is the only surrounding state to NC that is higher in all categories.
I hope everyone understands that I am not anti any state except for the state of confusion. We just need to take all factors into consideration when looking for a place to live in retirement years. For Mrs GD and I we are considering all options. We have not left our home yet. We are in the search and consideration mode. Chances are we will move but we just have not settled yet on where we will stay.
As a big city boy I cannot relate to the criteria many have put forth here as a good place to retire.
The one I agree with is medical infrastructure. I live about 5 blocks from one of the ten best teaching hospitals in North America according to US New & World Report.
Most of those rural / semi-wilderness places may have pretty scenery, but quite frankly after a month or two I would be bored out of my mind.
I want diversity. Cultural, racial, ethnic, religious, and sexual diversity. I want to live in an integrated place with young and old; Jewish, Christian, Buddhist, Muslim, Hindu, and nonbelievers; black, brown, red, tan, yellow and white; gay, bisexual, transgendered and straight all live together in the same neighborhood.
My requirements include street fairs and festivals, film festivals, parades, excellent fireworks displays, professional live theater of Broadway caliber, classical ballet and modern dance, a first rate symphony, an excellent opera company, world class art galleries and museums, history and science museums, botanical gardens and arboretums, jazz clubs, piano bars, Kosher delicatessens, ethnic restaurants by the score, etc etc etc.
Pretty scenery? Fresh air? Trout fishing? Hiking? I could jump in my car and get that an hour's drive from here.
Two weekends ago I went with two buddies camping in the Pocono Mountains; slept in a tent, went hiking and canoeing, built a huge camp fire ... it was fun, but it's not my year-round lifestyle.
I need culture, education, glamor, and excitement in my life. I will not be moving to a remote area in this life. That is who I am.
As a big city boy I cannot relate to the criteria many have put forth here as a good place to retire.
The one I agree with is medical infrastructure. I live about 5 blocks from one of the ten best teaching hospitals in North America according to US New & World Report.
Most of those rural / semi-wilderness places may have pretty scenery, but quite frankly after a month or two I would be bored out of my mind.
I want diversity. Cultural, racial, ethnic, religious, and sexual diversity. I want to live in an integrated place with young and old; Jewish, Christian, Buddhist, Muslim, Hindu, and nonbelievers; black, brown, red, tan, yellow and white; gay, bisexual, transgendered and straight all live together in the same neighborhood.
My requirements include street fairs and festivals, film festivals, parades, excellent fireworks displays, professional live theater of Broadway caliber, classical ballet and modern dance, a first rate symphony, an excellent opera company, world class art galleries and museums, history and science museums, botanical gardens and arboretums, jazz clubs, piano bars, Kosher delicatessens, ethnic restaurants by the score, etc etc etc.
Pretty scenery? Fresh air? Trout fishing? Hiking? I could jump in my car and get that an hour's drive from here.
Two weekends ago I went with two buddies camping in the Pocono Mountains; slept in a tent, went hiking and canoeing, built a huge camp fire ... it was fun, but it's not my year-round lifestyle.
I need culture, education, glamor, and excitement in my life. I will not be moving to a remote area in this life. That is who I am.
Excellent decision. You won't regret leaving Philly to come to NYC. Congatulations
It sounds wonderful, Gypsychic--what part of Florida are you in?
For us there doesn't seem to be ONE place that will work. I really really want to be near the beach, but where can we buy that winter temps are warm (HOT!) enough for me, that is actually affordable (say, under $400k for a single family home)? This is how we came to the decision to buy in AZ as our first step--we have a few years to go before we'll be retired. Priority one is the sun on my skin . It's sunny in Montana, and oh-so-beautiful, but when I say "sun on my skin" I mean HEAT!! lol As someone said on the Phoenix forum, I think I'm part lizard.
We plan to keep our place in AZ--there just isn't anyplace else we've found that has the winter temps I'm really looking for, and I prefer the dry air. I do love the desert, but not the way I love the beach!! Ridiculous as it might sound to someone minutes from the ocean, being 5 hours (or less if I brave a road trip into Mexico) from the beach is a whole lot closer than I am here in MT. I know people in Phoenix who visit the beach in San Diego as often as people who live within a few miles of those beaches!
Still, my dream has always been a place at the beach, and we are working on that final piece of the puzzle. We'd like to find a property that would work both as a rental and a "home" where we could spend at least a few weeks at the beach every year.
Gypsychic, is there somewhere in Florida we should be looking? Currently we have been focused on North Carolina as one of the few remaining places we might be able to afford a small place within a block or two of the beach. I don't have to be THAT close, but it does need to be within a half mile I think. We were under the impression that we probably couldn't afford Florida nor the Alabama gulf coast, but we hadn't ruled them out completely. It's just difficult to even start looking when you don't know the area, there is so much coastline. We might even consider a condo in the right location. Are there still locations in Florida close to nice beaches where we could find a lovely little beach shack to grow old in?
vero beach, Port St Lucie, Stuart, Jensen beach , Sebastian FL all would fit your under 400,000
Excellent decision. You won't regret leaving Philly to come to NYC. Congatulations
I am originally from NYC. I was born in Rego Park, Queens. I love NYC but can't afford it.
I moved to Philly because I can enjoy all those things I mentioned and yet can afford to live in my own 3 story 6 bedroom 3 fireplace 120 year old Victorian home. How much would a house like that cost me in Park Slope, Brooklyn Heights or Forest Hills (yes, University City is a comparable neighborhood)? Besides, with the opening of the Barnes Museum, Philly now has more European impressionist and post impressionist paintings than either NYC or Washington.
[quote=golfingduo;36321915]SC is lower in income but has a higher sales tax.QUOTE]
SC income tax is 7 percent. What kills me is the stupid car tax. I pay more for my car taxes on 2 cars than I do on my house. They are going to get it one way or another.
SC is lower in income but has a higher sales tax.QUOTE]
SC income tax is 7 percent. What kills me is the stupid car tax. I pay more for my car taxes on 2 cars than I do on my house. They are going to get it one way or another.
What's a car tax? I never heard of that. Do you mean the sales tax when you purchase a new or used car?
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
. It's sunny in Montana, and oh-so-beautiful, but when I say "sun on my skin" I mean HEAT!! lol As someone said on the Phoenix forum, I think I'm part lizard.
