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Old 01-20-2008, 03:04 PM
 
955 posts, read 1,956,184 times
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Quote:
Originally Posted by Ellwood View Post
I know the question was posed regarding property tax, but IMO there are so many other taxes/charges that figure into the equation of cost of living, that property tax doesn't relate the entire story. For example, there are states that tax military pensions, social security, add taxes in utility bills and other services, while the state boasts no state income tax.
Exactly correct. It is almost impossible to do a fair state by state comparison without an incredible amount of research. Just for openers, somes states do not have a sales tax on food. This may be of great importance to a retiree who may accept a high sales tax because of generally low consumption of other items, but obviously buys food. State gas taxes are all over the map. Some cities require a vehicle sticker (at a price) for the privelege of driving. You really need to do a full blown spreadsheet to figure the total taxation picture out.

So you should probably find a loaction that you like based on a whole range of amenities, and not just the property tax situation.
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Old 01-20-2008, 04:21 PM
 
Location: Knoxville, TN
2,172 posts, read 6,889,274 times
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Good point. You really need to do an analysis on how much it will cost you to live in a place and do what you want to do, not only when you retire but also 10, 15, 20 years past that.
Some states, like Tennessee, are actively working to make it possible for seniors to stay in their homes longer with more support of in-home care. TN has also passed a law that allows counties to freeze property taxes when the home owner turns 65. Most counties have followed through. There's no income tax but we do have a high sales tax.
Lower taxes may also mean fewer subsidized services that you'll need in the future. There are so many variables, there's no one size fits all.
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Old 01-21-2008, 08:13 AM
 
702 posts, read 2,231,470 times
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You got to watch some of these publications on the best places to retire! You would think AARP of all organizations would do a more thorough analysis of where to retire:
Dream Towns

If you've ever been to Memphis, or spend much time there, you know it's one of the most dangerous places to be. And it's #4 on their list!!

List of states that give breaks on retirement income:

State retirement income tax breaks
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Old 01-21-2008, 08:56 AM
 
5,825 posts, read 13,324,952 times
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Default State Retirement Tax Breaks

Quote:
Originally Posted by briansgi View Post
List of states that give breaks on retirement income:

State retirement income tax breaks
One size doesn't fit all. While this list mentions NY with an exemption of $20K for pensions, it fails to mention the county school tax portion of property tax will be reduced when you turn 65.

The best way is a spreadsheet which is individualized to your needs. A tax on clothing isn't important to a retiree, yet a tax on food would be. When we researched, we first considered what we wanted to do in retirement, hobbies, grandchildren, etc. We looked at various areas taking into consideration the activities in the area, climate, and cost of living, in that order. We figured what's the point in being able to live cheaply if we're bored to death!
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Old 01-21-2008, 08:55 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
22,631 posts, read 39,998,659 times
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Quote:
Originally Posted by Ellwood View Post
...
The best way is a spreadsheet which is individualized to your needs. A tax on clothing isn't important to a retiree, yet a tax on food would be. ...
Be sure to have a column for commuting for shopping / medical / airports, and a column for potential home appreciation. Those items made my current expensive area look pretty affordable in a 10 yr; future value (fv) scenario. The cash flow necessary to stay in an expensive area is another challenge, but can be mitigated by using some of the home equity for hard money lending, or leveraging into a commercial RE investment that will flow enough positive cash to keep the taxes paid on "Casa Grande"

In the meantime... I'm trying to find a reasonable location for the long haul. The numbers didn't work out to; 'move of a small rural town, offering free land', as the future resale (should that be necessary) and commuting for services ate a hole in the other pocket.
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Old 01-25-2008, 03:28 PM
 
Location: East Texas across street from the lake.
99 posts, read 280,024 times
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Property taxes in Texas; if a person homesteads their property, it cuts taxes by over one-half. After 65 no school taxes are paid on property, which leaves another reduction in property taxes.

Texas is a good place to retire too! Texas does not have a State Income Tax neither.
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Old 01-25-2008, 08:24 PM
 
Location: WA
5,397 posts, read 21,407,363 times
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Quote:
Originally Posted by texangelwings View Post
Property taxes in Texas; if a person homesteads their property, it cuts taxes by over one-half. After 65 no school taxes are paid on property, which leaves another reduction in property taxes.

Texas is a good place to retire too! Texas does not have a State Income Tax neither.
I think you need to look at Texas taxes more carefully.

The homestead in Texas exempts $15,000 of the value from taxation; not usually a cut approaching 50%.

Over 65 exempts another $10,000 from taxation and a school tax freeze (but not terminated).

Texas is not a friendly place when it comes to property taxes. My 85 year old mother lives in a 50 year old 1200 ft home that is appraised at about $120,000 and even though her school taxes were frozen 20 years ago she still pays over $950 a year. My taxes on a 30 year old 1400 foot condo were over $5000 a year... one reason I left Texas was because of property taxes.

Last edited by cdelena; 01-25-2008 at 08:46 PM..
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Old 01-25-2008, 09:03 PM
 
Location: Forests of Maine
30,691 posts, read 49,476,475 times
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Quote:
Originally Posted by cdelena View Post
...
Texas is not a friendly place when it comes to property taxes. My 85 year old mother lives in a 50 year old 1200 ft home that is appraised at about $120,000 and even though her school taxes were frozen 20 years ago she still pays over $950 a year. My taxes on a 30 year old 1400 foot condo were over $5000 a year... one reason I left Texas was because of property taxes.
Wow, she pays $900 more than I do.

But then we live in a new house on 42 acres.
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Old 01-26-2008, 11:13 AM
 
Location: New Orleans Louisiana
156 posts, read 352,233 times
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Quote:
Originally Posted by briansgi View Post
Wow wow.....Checking this list I wasn't surprized to see Louisiana in last place....the good news is though that last place is actually first place(from a tax standpoint lol).....I knew there was a reason I still live here
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Old 01-26-2008, 01:01 PM
 
Location: New Jersey/Florida
5,441 posts, read 10,527,852 times
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Quote:
Originally Posted by GregoryS View Post
Wow wow.....Checking this list I wasn't surprized to see Louisiana in last place....the good news is though that last place is actually first place(from a tax standpoint lol).....I knew there was a reason I still live here
Gregory, I guess this is the one thing that we didn't want to win. But on the other hand we also won the best salary. So I guess they think we can afford the high property taxes.
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