Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
I picked Nashville, San Antonio or Jacksonville from your list. All no personal income tax states, all affordable housing, all mild winters and each has plenty of stuff to do in the area....if you are a sports fan Jax & Nashville have NFL franchises, Nashville has the NHL, San Antonio NBA and all 3 have minor league baseball teams.
I am not sure how anyone can say Nashville. Davidson County, Tennessee has the highest sales tax in the country (9.25%) and taxes groceries (don’t get me started on how despicable I think taxing a necessity is). The sales tax rate is even higher (12%) when you make larger purchases over $1,600. They also have a tax on interest and dividends. That doesn’t sound like a good retirement option to me.
Of the cities on this list, I think Jacksonville, FL is best. It is home to a Mayo Clinic which I believe is the best hospital in the state and one of the tops in the country. None of the other cities on the list have as highly rated hospital. Too often, retirees do not consider medical care when moving and are surprised later to learn how poor medical care is in the inexpensive area they moved to. By then it is too late. Jay
Many other states have sales taxes in the 9%+ range. Groceries are taxed in TN at 5.5% on unprepared foods. For our $500 month grocery bill, that amounts to $330 per year in sales tax on groceries. That is far outweighed by our savings in property tax. Jacksonville's property taxes are much higher than Nashville. The proper way to look at taxes is to look at the overall tax burden, rather than any one tax alone. The Hall tax on dividends is being phased out and will be zero by Jan 2021, and only applies to interest and dividends. Other than the Hall tax, there are no state income taxes for individuals in TN.
Here's a chart ranking the states from highest to lowest overall tax burden:
Many other states have sales taxes in the 9%+ range. Groceries are taxed in TN at 5.5% on unprepared foods. For our $500 month grocery bill, that amounts to $330 per year in sales tax on groceries. That is far outweighed by our savings in property tax. Jacksonville's property taxes are much higher than Nashville. The proper way to look at taxes is to look at the overall tax burden, rather than any one tax alone. The Hall tax on dividends is being phased out and will be zero by Jan 2021, and only applies to interest and dividends. Other than the Hall tax, there are no state income taxes for individuals in TN.
Here's a chart ranking the states from highest to lowest overall tax burden:
Moderator cut: link removed, competitor site
That's a good chart for the average working person, but in retirement your tax liabilities change. There are many perks given by some states to seniors that change the order shown on the chart.
For example, some states give significant tax savings on retirement income, pensions and some also give seniors homestead status on their homes reducing the property tax burden.
For some people, moving to a state just because it doesn't have a state income tax is not always the wisest move when you take everything else into account.
Well obviously one shouldn't move somewhere solely because of the lack of state income tax. But also one shouldn't rule a state out of contention just because of a marginally higher sales tax. Even if all else (climate, medical care, crime rate, etc) were equal, there are many factors to weigh when evaluating a location's COL, even beyond taxes, such as home values, utility costs, insurance requirements/costs (flood, fire, wind) etc.
Well obviously one shouldn't move somewhere solely because of the lack of state income tax. But also one shouldn't rule a state out of contention just because of a marginally higher sales tax. Even if all else (climate, medical care, crime rate, etc) were equal, there are many factors to weigh when evaluating COL, even beyond taxes, such as home values, utility costs, insurance requirements/costs (flood, fire, wind) etc.
I totally agree. One needs to take into consideration the big picture and not only concentrate on finding a state without a state income tax.
For myself, a high property tax would hurt much much more, than a sales tax and my income won't be so high that I really need to worry about a state income tax in some states.
[quote=marino760;55941024]I totally agree. One needs to take into consideration the big picture and not only concentrate on finding a state without a state income tax.
For myself, a high property tax would hurt much much more, than a sales tax and my income won't be so high that I really need to worry about a state income tax in some states.[/QUOTE
There are areas in TX where you can be clobbered with property taxes, to make up for no state income tax. Particularly the Austin area.
One of the attractions of Tucson is it's just 65 miles to the Mexican Border. Ever heard of Medical tourism? And if you're running into roadblocks trying to get pain meds, your worries are over! I have a Dr. in Nogales who will write me a prescript. for just about anything to the tune of $3.50 per prescript. And, overlooked are other medical services available.
Tucson is the Blue Island of the Southwest, thanks to a huge University, the most liberal city in the Southwest. And I'm enjoying every second of it, poorly maintained roads and all!
"Orange County" isn't one city...at least not yet. They're working on it...almost no open ground left. My grandparents moved there when it was mostly Irvine Ranch pasture. Basque sheep herders with flocks blocked the Crown Valley Parkway (which was a 2 lane dead end road). Roadrunners standing on future sidewalk corners. Eucalyptus windbreaks and orange groves. The scent of the blossoms would just about overwhelm you. Everyone moving there to get away from the "city" headaches just brought them all with them. What it's become is unmentionable.
I grew up there too, and it was still a lot like that. I'll mention it---totally unaffordable. To list OC is ridiculous.
I didn't pick one, as our (*secret*) retirement city is not on the list( one reason we chose it!).
Thise in the north are completely out!
We also will only have about half a mil, unless we get an inheritance from FIL ( highly unlikely at this pt, ) or ky father, ( hes healthy now, but who knows).
But it is:
1) Southern locale so warm winter climate, a requirement
2) retirement incomes are not taxed
3) property taxes are a joke compared to the exhortatant NY taxes we are used to paying ( we put 10% down and over half about 63-65% of our mortgage payment is taxes) down there they average $35-50/month.
4) one can buy a nice sized lot with a 3br/2ba 1100-1350 house on it for $65k.
5) did i mention no winter or very little of it?
6) i can get duplicated medical services down there as to the same as up here , excellent. Thst is crucial.
7) it has all the stores we would need that we routinely use up here
No, its NOT IN Florida!!! We hate Florida.
No, im not revealing it either, as we dont want it overrun by the time we actually get there with high prices either.
Good luck to all who seek that "perfect " retirement locale!!
No Carolina`s in the poll? That is where we will be headed.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
