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We currently live just outside Seattle and are looking for places to retire. Has anyone lived in AZ and FL and WA for any length of time that can advise me on the taxes, etc.? We are debt free and own a home in WA and only have 401ks to retire on and savings in the bank. Our home is worth $700K. No state income tax in WA but the other taxes kill us (property taxes $9k, sales tax, cola). Thinking of retiring early too, so would need to purchase health care. TIA
Florida and Washington are pretty similar in their tax schemes. You should get a cheaper house in Florida but you will have to pay a huge fee to insure your house there which you don't have in Washington or Arizona.
Arizona has a state income tax although at a lower rate than most states and they also tax cars which we no longer do in Washington. Property taxes are lower in Zona and gas tax, etc. are lower.
Strictly from a financial perspective, you can find places in Washington (such as Tri Cities) that are as are almost as cheap as Arizona or Florida. Of course, if you're very high income (doubtful in retirement), then the no state income of Washington and Florida become more attractive.
So my opinion is to find the place you like in terms of weather, proximity to family and friends, and things you enjoy doing.
Wife and I are planning to winter in Zona and the rest of the year in the PNW. I retire in less than a year. We picked Tri Cities and bought a house and recently a lot to build there but want to look around when I retire to try to assure we want to stay there. We are also looking at Anacortes and Oak harbor for our non winter location.
Homesteading in FL helped in what was charged in property taxes for a double wide in a 55+ community. When retirement beckoned four years ago and the move to PHX took place, the rate was, interestingly, within $50. The Sunshine State place as frugal living ending, the site owned property sold for 40K while the AZ townhome was over a quarter million. Pointed out already, what can be gained in one cost area will be lost in the structure of another (state). Research for specific cost outlays relevant to your approach will get you in the ballpark with appropriate numbers. Good sites have been referenced.
Arizona utility costs are seasonally based under low, high and peak demand tiers. Under time of use, when services are needed the most, the rate is double. This was quite different than when I resided in the south (much, much lower)). Plan options are available to not suffer $500. plus summer billing but beware of this price environment. One must give some comfort to receive some cost reduction.
We currently live just outside Seattle and are looking for places to retire. Has anyone lived in AZ and FL and WA for any length of time that can advise me on the taxes, etc.? We are debt free and own a home in WA and only have 401ks to retire on and savings in the bank. Our home is worth $700K. No state income tax in WA but the other taxes kill us (property taxes $9k, sales tax, cola). Thinking of retiring early too, so would need to purchase health care. TIA
If you are considering the Arizona, why not look in Washington dry areas west of the Cascades? Houses and property taxes are way more affordable than Seattle. As mentioned above, the Tri-Cities could work. We have visited Wenatchee and it is on our list of potential retirement areas.
If you are considering the Arizona, why not look in Washington dry areas west of the Cascades? Houses and property taxes are way more affordable than Seattle. As mentioned above, the Tri-Cities could work. We have visited Wenatchee and it is on our list of potential retirement areas.
Post-retirement in 2003 we bought a home in AZ. Had it for 10 years (though for the last 5 only used it a vacation home after we bought a home in Mexico). Bought a home in FL in 2014, though we only use it as a vacation home since last year, after buying another home in Mexico.
Love not having state income tax in FL.....we have a lot of retirement accounts with taxable withdrawals and a hefty pension that was fully taxable in AZ.
On real estate, yes FL real estate taxes are a bit higher than what you would pay on similar home in AZ. We paid very little AZ real estate taxes as our home there qualified for an Historic designation so we paid 50% less than assessed.
Sales tax in our part of AZ was high....9%. In FL, our state/local sales tax is 7%. We are high spenders/consumers so we feel that rate difference.
There is no one-size-fits-all. It will depend on the amount of income subject to tax by any given state (some have good exemptions for pensions...GA for example) and whether you intend to live in an expensive home/high COL area. And whether you are a big consumer of goods or not (for sales tax).
For us, the FL home has a high insurance cost (as do FL cars, etc.) due to hurricane risk and flooding. We are only 1 block from water there.
Last edited by dothetwist; 07-30-2018 at 10:16 AM..
We're getting out of WA state and moving to TN. It' s not just cost of living. It's politics. Folks in charge of WA state love raising taxes. I'm just done with it.
We currently live just outside Seattle and are looking for places to retire. Has anyone lived in AZ and FL and WA for any length of time that can advise me on the taxes, etc.? We are debt free and own a home in WA and only have 401ks to retire on and savings in the bank. Our home is worth $700K. No state income tax in WA but the other taxes kill us (property taxes $9k, sales tax, cola). Thinking of retiring early too, so would need to purchase health care. TIA
Bear in mind that there's no capital gains tax in WA, either. As to your property taxes, have you considered creating a rental unit of some kind, on your property, to cover your property taxes and maintenance costs? Remember, there's no income tax on that rental income. A basement unit, a converted garage, a spare room with a separate entrance turned into a studio....? It could make your WA residency ideal for retirement.
I think you should spend part of a summer in AZ and FL first, before you decide to move there. The heat might be a shock. Did I mention--MONTHS of relentless heat? Forcing you to live indoors with A/C for 5 months or more? And in FL---mold issues, parasites, Zika virus, etc.
If you are working with a tight budget once you settle on an area check all your utility costs for the place you want to buy. The costs can vary a lot and different utilities can service part of a town.
Yup, there is a lot of work involved to really get a handle on cost of living for an area. In addition to taxes and utilities, there's car/house/medical insurance to consider. How much does a dental visit cost? A trip to the vet for one's pet(s)? Plumber's call? On and on...
Florida native. Moved to Washington when I was 35. Seattle area will suck you dry, taxes and weather.
North Georgia was a nice compromise and made early retirement possible. Georgia state and proprerty taxes become less of a burden at 62 and more so at 65. Gas is cheaper as well as car insurance. House insurance about equal. Food much cheaper. They still serve sweet tea here with plastic straws, wink.
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