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Old 01-09-2008, 11:21 AM
 
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Does anyone know a link to a formula that will calculate income vs a state's income tax?
Thanks
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Old 01-09-2008, 02:40 PM
 
Location: Marietta, GA
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I'm not sure if they have exactly what you are looking for but try Financial Calculators from Dinkytown.net , They have an amazing assortment of financial calculators.
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Old 01-09-2008, 06:35 PM
 
238 posts, read 1,157,321 times
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Quote:
Originally Posted by NorthmeetsSouth View Post
I'm not sure if they have exactly what you are looking for but try Financial Calculators from Dinkytown.net , They have an amazing assortment of financial calculators.
I was pretty vague in my question ..basically we are trying to compare cost of living in two of the states we are looking to retire in. I wanted to see if there was a tool that would calculate how our income would be taxed in each state. Something quick & easy..if there is such a thing!
Thanks for your help!
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Old 01-09-2008, 09:54 PM
 
Location: Forests of Maine
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There have been many different people trying to offer just that.

However so far each has done it with a different angle, which presents problems.

You tax situation is entirely different from mine you see.

Some states obviously do not tax income. Just as our nation did not if you go back 60 years. Most states have a collection of deductions and exemptions, which when added together give you a personal trip-wire. If you earn more than that trip-wire than the excess may be taxed. But if you earn less than that trip-wire, you pay nothing.

These deductions and exemptions change not only from state to state, but also with your age and your eye-sight, they change if you are a disabled vet or other factors.

We moved to Maine when my pension kicked in, and we do not pay income taxes here.



Also you may need to look at each state's property tax situation and how that would effect you. My local mil rate is 0.00842 so with our house and 40+ acres of forest and riverfrontage, we pay just under $50 a year in property taxes.

In other states 40 acres of waterfront land and a house may cost you $10,000 each year in taxes.
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Old 01-09-2008, 10:04 PM
 
Location: Lovelock, NV - Anchorage, AK
1,195 posts, read 4,996,781 times
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Wow you pay very little for property tax, here in Alaska we have 3 acres on a lake with 400 feet of lake front and pay $435. per year, I wonder if they take into account the fishing hole is on pur property too
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Old 01-09-2008, 10:21 PM
 
Location: Forests of Maine
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Quote:
Originally Posted by Tressa View Post
Wow you pay very little for property tax, here in Alaska we have 3 acres on a lake with 400 feet of lake front and pay $435. per year, I wonder if they take into account the fishing hole is on our property too
I moved here in 2005. I paid $900 per acre [which to me is extremely low for waterfront forest]. I have 1/4 mile of river frontage. County maintained paved road with power / phone / DSL at the pavement, weekly garbage pick-up is free, we have good schools, we are 20 minutes from a state university and a shopping district.

My in-laws saw the deal that I got and they bought 100+ acres across the road from me for $350 per acre [no river access].

Whenever I talk to the locals, they insist that Maine is the highest taxed state. Having moved around a lot during my career, I have seen high taxes before, and this is not 'high taxes'.

But the local media and local politicians keep repeating over and over again to these people that Maine is the lowest earning population and the highest taxed. They are being manipulated for some reason, into believing complete nonsense. I do not know why.

It is enough for me to know that I got into a sweat deal for my retirement.

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Old 01-10-2008, 11:11 AM
 
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DDR, I've never seen an actual functioning worksheet, but there is a nice summary of all state taxes by state at retirementliving. You just may have to push the pencil around yourself.

Beekeeper, Maine is actually not comparatively bad re: Social Security and pension income treatment, so enjoy your situation. But, 8.5% over $18,000 of taxable wage income is not exactly "nonsense" to people who are earning a paycheck. That super low attachment point produces just about the most confiscatory average effective rate I know of.
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Old 01-10-2008, 11:39 AM
 
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This may help. You can pick the state and it will tell you what your check will be after the usual deductions. You can eliminate fica if you are receiving a pension.
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Old 01-10-2008, 12:19 PM
 
Location: Forests of Maine
30,718 posts, read 49,520,236 times
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Quote:
Originally Posted by casualobserver View Post
...
Beekeeper, Maine is actually not comparatively bad re: Social Security and pension income treatment, so enjoy your situation. But, 8.5% over $18,000 of taxable wage income is not exactly "nonsense" to people who are earning a paycheck. That super low attachment point produces just about the most confiscatory average effective rate I know of.
Only if you allow your taxable income to go too high.

Subtract your deductions, than subtract your exemptions, then any write-offs. Your Gross income has all of these things subtracted before it becomes your AGI. Only the taxable part of your income counts and then is when you start working your way toward the $18k bracket.

The highest state income tax bracket is 9.9% by the way.

We have maintained our income fully sheltered since 1983, when we first started taking IRS courses and learned how to do tax-planning.

I have only been retired since 2001, before that I too was 'earning a paycheck', my income tax 'situation' has not changed simply because I qualified for a pension. My Gross income dropped, but my tax obligation has remained the same. Zero.

Such is the lifestyle of anyone who does tax-planning.
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Old 01-10-2008, 02:13 PM
 
29,829 posts, read 34,918,975 times
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Payroll-Taxes.com - Paycheck Calculators

Forgot the link
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