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My husband and I will be retiring in 2015. We decided we want to retire in either SC or Fla. WE are both in our early 60's, both of us will have NY state pensions, and since I'm 1 year older I will have SS. My question: Which state will give us more "bang for the buck?" Fla has no state income taxes, so our pension will not be taxed. However, car and homeowners insurance is expensive. Property taxes are also slightly high. Housing also seems slightly higher. SC will tax our pensions since it DOES have state income tax, however insurance, housing and general cost of living seems lower. So which would be better? No tax with higher COL or being taxed with slightly lower COL? Our brains are fried thinking about this.
My husband and I will be retiring in 2015. We decided we want to retire in either SC or Fla. WE are both in our early 60's, both of us will have NY state pensions, and since I'm 1 year older I will have SS. My question: Which state will give us more "bang for the buck?" Fla has no state income taxes, so our pension will not be taxed. However, car and homeowners insurance is expensive. Property taxes are also slightly high. Housing also seems slightly higher. SC will tax our pensions since it DOES have state income tax, however insurance, housing and general cost of living seems lower. So which would be better? No tax with higher COL or being taxed with slightly lower COL? Our brains are fried thinking about this.
Besides the sites Katie45 put up you can also use Tax Foundation
That question has been asked by a number of people. If you look through some of the older threads you will see there are as many opinions as there are stars in the night sky. I can tell you that as you look do not just go by tax situation. There has to be a feel about the place that makes you feel at home. Moving will also disrupt your life as you know it. You leave behind family, friends, and support services that you are accustomed to. Take all of that into consideration or your move will be costly.
My husband and I will be retiring in 2015. We decided we want to retire in either SC or Fla. WE are both in our early 60's, both of us will have NY state pensions, and since I'm 1 year older I will have SS. My question: Which state will give us more "bang for the buck?" Fla has no state income taxes, so our pension will not be taxed. However, car and homeowners insurance is expensive. Property taxes are also slightly high. Housing also seems slightly higher. SC will tax our pensions since it DOES have state income tax, however insurance, housing and general cost of living seems lower. So which would be better? No tax with higher COL or being taxed with slightly lower COL? Our brains are fried thinking about this.
Be advised you need to consider what you consider bang and how much value you put on that. Cheaper taxes as with a lot of cheaper things doesn't equal the same value to everyone. Pay attention to proximity of what you value and the time to get there. Small things like being a Costco junky and moving where there is none beta etc etc. Access to shopping if important. When the second SS kicks in and the SS and Pension COLA's compound your finances can look different relative to expenses.
In the first place, there is no perfect place for everyone. Depending on circumstances, different places will appeal to different people. Even if you pick one state, some areas of the state will be great and others no so much. Good luck. Its not an easy decision.
Consider Georgia. Individual exemptions are 35K for those over age 62, 65k for those over 65. She'll tax a bit high. Property taxes much lower than FL, ~ more or less on par with SC. Sales tax varies, depending on municipality (6-7% is good total for starters). Wheel tax is probably most onerous. Actually, the 'income' tax free situation has gotten. Georgia is a state income tax free zone for all intents and purposes. http://http://www.henssler.com/on-th...taxpayers.html
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Who is eligible for the retirement income exclusion?
A taxpayer is eligible for the exclusion if: (1) the taxpayer is 62 years of age or older during any part of the taxable year; or (2) the taxpayer has a permanent, medically provable disability that renders the taxpayer incapable of gainful employment.
When does the income exclusion increase?
For 2013, taxpayers age 65 and older will be able to exclude $100,000. In 2014 the exclusion increases to $150,000, and increases again to $200,000 in 2015 for taxpayers older than 65. In 2016, taxpayers older than 65 will be able to exclude an unlimited amount of unearned income.
One of the taxes that SC has that none of the sites ever talk about is the annual car tax. You will pay a tax on your vehicle to license it every single year. That tax can be pretty hefty depending on the age and value of your vehicles.
SC also has the worst driver's in the country and it is reflected in our car insurance rates.
Tennessee is definitely one of the lowest taxed states when you factor in all taxes. Our sales tax is higher than most but our property tax is very low, no state income tax on any income, except dividends. Vehicle taxes are super cheap and there are very few "sneaky" taxes.
A lot of people retire to FL and then end up moving to TN. So many people here have moved from Florida, that they even have a name for them, half-backs. Because they move from up north to FL, after a few years they don't like FL anymore, so they move to TN, approximately halfway back.
One of the taxes that SC has that none of the sites ever talk about is the annual car tax. You will pay a tax on your vehicle to license it every single year. That tax can be pretty hefty depending on the age and value of your vehicles.
SC also has the worst driver's in the country and it is reflected in our car insurance rates.
Most states have car tax it is usally local to your home city. Insurance is high in many places too. You have to shop around. When I went to SC last summer what I noticed that was high was food tax (restaurant). There were city and local taxes added. In Summerville where I was at I think we paid about 9% total on the meal.
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Originally Posted by TheShadow
Tennessee is definitely one of the lowest taxed states when you factor in all taxes. Our sales tax is higher than most but our property tax is very low, no state income tax on any income, except dividends. Vehicle taxes are super cheap and there are very few "sneaky" taxes.
A lot of people retire to FL and then end up moving to TN. So many people here have moved from Florida, that they even have a name for them, half-backs. Because they move from up north to FL, after a few years they don't like FL anymore, so they move to TN, approximately halfway back.
TN is number 9 on lowest COL as listed in Moderator cut: link removed, linking to competitor sites is not allowed. SC is 8 adn TX was number 10. There are some northern states that are higher up the list but we are considering weather, lifestyle, COL, housing costs, as well as taxes in our decision.
countrykaren
I just suggest you make a list of those places that meet your criteria. Start up a list and add weights to items like schools, hospitals, size of city, services provided by the community. Take that list whittle it down to a managable size. Go visit them. Stay for a while, especially importatant if you are planning on making it the only home, go during what you would consider the too hot or too cold time (depending on what you feel is the worse weather to deal with). See if it will be what you like and can handle. If you are a social person with the church maybe your pastor can help in relocation. Or you can look for groups that you are interested in or have some relationship with. The more support you can take with you the better.
Last edited by Yac; 12-31-2014 at 06:16 AM..
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