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Property tax and state income tax are still only 2 parts of the tax burden paid by folks. ..
Correct.
'Tax Burden' usually includes all state revenue from all sources: individual income taxes, property taxes, hunting licenses, fishing licenses, permit fees, and corporate taxes, employer taxes, etc], and then divides that by the number of state residents.
The problem with 'Tax Burden' in conversation is that it is often used to imply the costs to individuals in the state.
If conversation is intended to include corporate and employer expenses, then fine.
I was speaking from an individual perspective. As in the tax 'burden' I shoulder personally. I didn't mean to use a broader term including corporate, or employer taxes, so you make a valid point in my use of the word.
When we look at websites using statistics, the phrase 'Tax Burden' is oft used by various sites in a specific context. I know that the state I moved to for retirement, has an very high 'Tax Burden' according to the statistics.
However those statistics include the corporate and business burden, and are not reflective of the individual 'burden'.
Property tax and state income tax are still only 2 parts of the tax burden paid by folks. Here is a website (disclaimer: there are a lot of them that differ somewhat) that rates the total tax burden by state. Moderator cut: link removed, linking to competitor sites is not allowed
Low taxes and COL are not the main reason a retiree should chose a location though, again just a piece of the puzzle. You need to really love the place you move to for other reasons or you'll be bored or unhappy with your choice.
Thanks for linking that website, which I found interesting. For the benefit of others who may give it a quick look without scrutinizing too much, I will comment that it reflects state taxation only, not local. So for example Texas ranks 50th - dead last in "tax-burdensomeness". My conclusion is that most of property taxation in Texas must be local (as opposed to state-wide), as I have read too many Texans complaining on C-D about their high property taxes. I am not claiming the list is not useful, not at all, just that it's important to realize what it's showing and what it's not showing. Another example of that would be the extent to which sales taxes can vary in different parts of a state depending on what localities have voted to tax themselves for. In some states sales taxes may not vary much from lowest to highest localities but in other states there can be greater differences.
I was also interested to note that California ranks 9th. I have always readily admitted that Calif. is a high-tax state. But what I have argued against is the notion that somehow Calif. is the worst of the worst, an unimaginable tax hell. Your list puts that in perspective - eight states are worse.
Property tax and state income tax are still only 2 parts of the tax burden paid by folks. Here is a website (disclaimer: there are a lot of them that differ somewhat) that rates the total tax burden by state. Moderator cut: link removed, linking to competitor sites is not allowed
Low taxes and COL are not the main reason a retiree should chose a location though, again just a piece of the puzzle. You need to really love the place you move to for other reasons or you'll be bored or unhappy with your choice.
This State Master web site confuses me. I spent about two hours this afternoon going through various pages and nowhere can I find their methodology about how they computed the tax burden, other than to say that they don't include local or federal taxes.
They list Wyoming as having the second highest tax burden, per capita, after Hawai'i. We've all known that Hawai'i has high taxes, along with everything else being more expensive, partly due to the cost of getting things over there from the mainland. But, Wyoming at number two, and very close to Hawai'i? At every other web site I've seen, Wyoming is always listed as one of the most tax friendly states, always in the top-10.
I also agree with your last paragraph. Wyoming and Idaho, (the focus of my research), are stunningly beautiful. I'm really looking forward to the adventure. Now, if I can only survive the long, harsh winters?
Yeah, I'm not saying that's a great site. It was one I selected at random, as an example, from the many sites that compare and rank state taxes on the whole, rather than just looking at property tax, or just state income tax. Also, it's good to recognize that low taxes may mean that some government services are not funded. Better make sure that what is important to you is funded. It's definitely important to research the heck out of anywhere you are considering for your retirement destination, and not just the state, but down to the local level. Visit that location in both good and bad times of year, to see if you can deal with the worst it has to offer. Talk to locals on your visits and ask them lots of questions. One question I like to ask is what is the one thing that bugs them about the area, or what they would change if they were all-powerful. I was always surprised at the responses.
I am so happy with our choice, and the other transplants that live near me are too. We talk to people everyday, even those who've lived here for years and they still say how great it is too live in such a beautiful place with such great neighbors. Low COL and taxes were some of our original motivations, but they have really become secondary to our daily joy in living here.
Yeah. Not the best web site. They cite a source, but really doesn't. For example, they will cite the U.S. Census Bureau as their source, then link to the home page of the census bureau. Anyone who has ever visited that site looking for something will know that it is a massive site and their data is not "user friendly".
I'm taking the second and third weeks of December to visit my possible retirement locations. I know what they are like in the spring and summer, (fantastic), but not in the dead of winter. Trying to come up with an itinerary before I go. In addition to places to spend some time, I need to compile a list of who to see. People like realtors, city planning departments, college deans, churches, and anyone else I should be talking to.
I like your idea of asking what residents would change about where they live. That's a good one.
This State Master web site confuses me. I spent about two hours this afternoon going through various pages and nowhere can I find their methodology about how they computed the tax burden, other than to say that they don't include local or federal taxes.
They list Wyoming as having the second highest tax burden, per capita, after Hawai'i. We've all known that Hawai'i has high taxes, along with everything else being more expensive, partly due to the cost of getting things over there from the mainland. But, Wyoming at number two, and very close to Hawai'i? At every other web site I've seen, Wyoming is always listed as one of the most tax friendly states, always in the top-10.
I also agree with your last paragraph. Wyoming and Idaho, (the focus of my research), are stunningly beautiful. I'm really looking forward to the adventure. Now, if I can only survive the long, harsh winters?
Hawaii being the #1 is pretty shocking to me, to live in Hawaii as a primary residence, your tax burden is relatively low. Pensions aren't taxed. Distributions of employer contributions to 401k are not taxed. There are huge property tax exemptions for owner occupied. It's expensive, sure, but I wouldn't consider it to be heavily taxed.
My teacher pension is from NJ, when I moved to SC the tax went to SC.
Uh...you bumped a thread from 8 years ago!
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