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When screening states for retirement living, one factor, not the largest for sure, is the tax differences for one state vs another.
It would be useful to have a calculator that takes components of federal income tax returns and produces the relative tax burdens for states an individual would experience would be a good screening tool. I would also like to be able to compare the property tax burden in several locations across different states for a home at various costs.
Has anyone seen such a tool? I am not looking for a precise tax calculation but one that is say 90 to 95% comprehensive. I sounds one tool that claims to do this but ignores differences in how different types of retirement income can be treated when the key types are readily available from the fed tax return.
If none exists perhaps it would be good idea to develop and market one? Any takers or thoughts?
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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States and even counties are too broad to get a good idea of property taxes.
example: I have 2 homes across the street from each other. On is in a 8.2 tax levy, the other 14.7
I have homes less than 30 seconds part (different counties). Same cost basis, one has $17k property taxes, the other $1200 (Different assessors and tax levies).
In all cases:
1) I use a weighted spreadsheet and plug in the numbers.
2) I never make an offer on property until AFTER I spend a few hours with the assessor and the appraiser (for the county) and the planners.
3) OFTEN it is much better financially to RENT, and to invest your primary residence capital in a PERFORMING asset (real estate or otherwise)
You will be happier if you pick a place to live based on your own priorities for well-being, not just low taxes. This applies to retirees and workers. Find a place that makes your heart sing.
Location: East of Seattle since 1992, 615' Elevation, Zone 8b - originally from SF Bay Area
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Quote:
Originally Posted by StealthRabbit
States and even counties are too broad to get a good idea of property taxes.
example: I have 2 homes across the street from each other. On is in a 8.2 tax levy, the other 14.7
I have homes less than 30 seconds part (different counties). Same cost basis, one has $17k property taxes, the other $1200 (Different assessors and tax levies).
In all cases:
1) I use a weighted spreadsheet and plug in the numbers.
2) I never make an offer on property until AFTER I spend a few hours with the assessor and the appraiser (for the county) and the planners.
3) OFTEN it is much better financially to RENT, and to invest your primary residence capital in a PERFORMING asset (real estate or otherwise)
I agree. The problem is the variation within the state. Our state income tax, for example, is a reasonable 6.5%, however we pay 10% due to additional taxes added to it by local authorities. We have no state income tax, which sounds great, but our property taxes are high, and we have one of the highest tax rates on gas.
I agree. The problem is the variation within the state. Our state income tax, for example, is a reasonable 6.5%, however we pay 10% due to additional taxes added to it by local authorities. We have no state income tax, which sounds great, but our property taxes are high, and we have one of the highest tax rates on gas.
Then you are so far east of Seattle that you are east of Washington state?
There are just way too many variables. Websites I have looked at make sweeping generalizations, that end in error.
retirementliving.com for example does not show that military pensions are exempted in my state.
Also if you are on a pension, you will likely be living on a much lower income than when you were working.
We file Married-Joint, the Standard Deduction and Personal Exemption combined is more than our annual income. Which means that we can't pay income taxes anyway.
For a retiree to worry about income taxes may find that they simply do not apply.
Texas has no state income tax but the property taxes just keep going up and up and up.
And when it reaches the cap of how much it can increase they just increase the value of your property to get more money.
Then you go and try to fight the assessment and hit a brick wall. There's an entire industry built up around protesting your property taxes in Texas and it's become almost a "must do" in some of the bigger cities.
Texas has no state income tax but the property taxes just keep going up and up and up.
And when it reaches the cap of how much it can increase they just increase the value of your property to get more money.
Then you go and try to fight the assessment and hit a brick wall. There's an entire industry built up around protesting your property taxes in Texas and it's become almost a "must do" in some of the bigger cities.
I agree.
We have seen homes where the property taxes were so high that they were more than my pension.
Whereas now we live in a 'paid-off' home and our property taxes are around $860/year.
This would give a general idea of each State's treatment of SS, Pension and other Income. The specifics of the local Real Estate Taxes would require further research.
This would give you one data point to factor in, but don't let a couple of hundred bucks in overall taxes prevent you from retiring where you really want to spend the rest of your life.
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