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Old 12-16-2009, 07:30 AM
 
Location: Forests of Maine
30,687 posts, read 49,469,539 times
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We moved to a Maine, a state that does have an income tax, after I retired.

We have found that our combined household income [my Dw works p/t, I have a pension, and we have a few small income streams from investments] is still below the threshold for paying income taxes in the state of Maine.

So while Maine does have an income tax, and while it would tax pension income, it does not tax any income until those incomes build up and surpass a threshold amount.
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Old 12-16-2009, 07:36 PM
 
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Quote:
Originally Posted by forest beekeeper View Post
We moved to a Maine, a state that does have an income tax, after I retired.

We have found that our combined household income [my Dw works p/t, I have a pension, and we have a few small income streams from investments] is still below the threshold for paying income taxes in the state of Maine.

So while Maine does have an income tax, and while it would tax pension income, it does not tax any income until those incomes build up and surpass a threshold amount.
Thank you. That's an important point. The thresholds are important rather than just looking at whether there are taxes at all.
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Old 12-16-2009, 07:43 PM
 
Location: Forests of Maine
30,687 posts, read 49,469,539 times
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Quote:
Originally Posted by xz2y View Post
Thank you. That's an important point. The thresholds are important rather than just looking at whether there are taxes at all.
I agree, which is why I bring it up from time to time.

Folks tend to focus on states which have no income taxes.

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Old 12-17-2009, 02:41 PM
 
Location: Alaska
5,356 posts, read 16,352,909 times
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Quote:
Originally Posted by GreenGene View Post
I don't know if there's a good, comprehensive list of states and their tax laws regarding various forms of income. Some states don't tax state pensions; others do. Some states don't tax federal pensions; most do. For IRAs .... I don't know, although it is my understanding that most states exempt at least a portion of income from an IRA.

And (naturally) tax laws are subject to change.

Here's a link to an article that may help.

The Basics -- Which states give retirees the best deal? - MSN Money (http://moneycentral.msn.com/articles/retire/basics/9838.asp - broken link)
From the table, it looks like we should retire where we're currently living. Fortunately for my planning, I left out the local senior tax exemptions so we should be good for other locations if we so choose. Property taxes will play a larger role in deciding where we end up.
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Old 12-17-2009, 03:02 PM
 
Location: Forests of Maine
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Originally Posted by akck View Post
From the table, it looks like we should retire where we're currently living. Fortunately for my planning, I left out the local senior tax exemptions so we should be good for other locations if we so choose. Property taxes will play a larger role in deciding where we end up.
Low property taxes:
In this area a common thing is law in 'Treegrowth' status. It is a tax status where if you let trees grow; either naturally or by planting them, then the assessed value of the land is set at a very low amount.

I have 150~ acres of forest that is in 'treegrowth' status.

I know folks who live in cabins in the forest, and they are paying less than $1 per acre each year for their property taxes.

For my land, I messed up. I followed the advise of a contractor. I took one acre out of the 'treegrowth' status, when I built our house. Now for that one acre and the house on it, I pay $850/year. But for all of my forest acreage I pay around a dollar per acre.

We have a lot of rivers and lakes here. I have 1/4 mile of river frontage behind my house.

If you like fishing, hunting, boating, or simply eagle watching; this is a low expense way to live.
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Old 12-17-2009, 07:51 PM
 
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I live in Illinois and pay no state income tax. My income is from IRA withdrawals along with SS. Not sure about pensions since I dont' have one.
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Old 12-19-2009, 02:44 PM
 
Location: So. Dak.
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This site may have a bit of info for you~

Taxes by State
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Old 12-19-2009, 03:18 PM
 
Location: Forests of Maine
30,687 posts, read 49,469,539 times
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Quote:
Originally Posted by Jammie View Post
This site may have a bit of info for you~

Taxes by State
That site has been shown many times as having more errors than accuracies.
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Old 12-20-2009, 11:49 AM
 
Location: So. Dak.
13,495 posts, read 34,073,047 times
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Quote:
Originally Posted by forest beekeeper View Post
That site has been shown many times as having more errors than accuracies.
Oh, I'm sorry. I have posted it a few times and didn't realize that. I know it's accurate for my state so I just figured it was reliable. Sorry, scratch that.
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Old 12-20-2009, 12:08 PM
 
8,204 posts, read 11,921,160 times
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Quote:
Originally Posted by Jammie View Post
Oh, I'm sorry. I have posted it a few times and didn't realize that. I know it's accurate for my state so I just figured it was reliable. Sorry, scratch that.
No need to apologize. That is an excellent site with a great deal of information. A couple people here have routinely claimed that it is wrong because it may not match their particular situation. I have yet to see someone produce any authoritative info that contradicts the information provided by that site.
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