[RobSg]

I posted on here before and got a couple of positive responses, but after reading severeal other posts on different threads, semi-retiring in Vermont has me a little nervous. I'm a retiring teacher.

Is retirement income taxed the same as if it were a salary? I have my own private retirement plan with TIAA-CREF, and will be receiving money every month after I retire. I know it's taxed at the federal level, but how much of that is taxed at the state level. I'm single and no house there yet.

My full retirement is more than $62,000/year with a 2% COLA, but will opt for $50,000/year instead so that my income in the future will be more substantial. I read a lot of complaints about taxes and cost of utilities, and that has me a little worried.

Where will I settle? I like to be close to Canada as possible- most likely St. Albans or Swanton area. I'm also hoping to get some part time work to keep myself busy, but many people here say that jobs are scarce. I would love to be a paraeducator and help out at schools with weaker students. I am a science teacher, by the way.

Thanks for any comments, positive or negative. Much appreciated.

Regards, Rob

[Sherylcatmom]

Hi Rob,

Here is the State of Vermont's official info page on taxes:
Vermont.gov - Residents - Taxes - Vermont Taxes

If you want to talk to someone and ask more specific questions, you can fill out an email request for help here or call 802-828-2865.

Every state has its challenges. I prefer Vermont's challenges to those of other states. I've had no trouble finding part-time work here. If you're looking to work in education and have experience to offer, I imagine you could find some kind of work.

Here is a Wikipedia page with St. Albans & Swanton & other area links.

Good luck!

[flu189]

Very simple, all income here will be taxed. Military, govt, whatever pensions WILL be taxed. The stark reality for anyone planning to retire here is to plan to not to expect any breaks and even the property tax prebate program for lower incomes will most likely be diminshed in the future to feed the furnace of ever increasing budget needs. For folks preparing to retire, especially middle class, it is critical to plan with eyes wide open. In the case of Vermont it is pretty obvious that we want to keep all our perks funded and if you research the tax base supply here in terms of individuals and businesses it pretty clear that the current level of spending versus income generation will become in the near future unsustainable. We all see what is happening with the economy nationally now concerning real estate and consumer credit. All bills come due and we here are no exception. There are only so many sources of deep pocket resources we can continue to tap. It would be much wiser to go on an economic diet now rather than later, but by all indications we will continue on the path we are and later the bill to all of us will become much worse.

[RobSg]

If I were to spend 6 months or less in Vermont and spend the other 6 months in Canada, am I still taxed in Vermont? Is there an time required to live in Vermont that you have to pay these rather hefty taxes.

I'll have another home outside Montreal, and would like to spend part of the year there and part in Vermont. If I did that, would I qualify as a Vermont resident with all the taxes?

Thank you in advance.

Regards, Rob

[mustmove]

The VT tax machine is pretty nasty. Also beware they are coming after capitol gains here soon.

[flu189]

Reference the cross int'l border question, you probably really should consult an accountant who specialized in the complexities of Vermont taxation. I have a friend here who has been doing taxes professionally and he also agrees that we probably have the most twisted and confusing tax system and also that the perfect storm is on the horizon reference on how far the state will go to produce revenue.

[RobSg]

Hi again,
I have been looking at the one website, and I am amazed at the difference in(Taxes by State) tax rates. I honestly believe that I would be somewhat foolish to semi-retire in Vermont based on what I read. For example, my retirement income will be anywhere from $50,000 to $62,000+ depending on my needs. If I retired in Vermont, all of that retirement income is taxed at at least 5%, or maybe even more. In New Hampshire, retirement income is not taxed. In Maine, they exempt $6,000, and the rest is taxed. In New York, the state exempts $20,000 from your retirement income.

Maybe the 5% or so is the price you need to pay to live in a beautiful state like Vermont, but I believe that New Hampshire is just as beautiful. That
5%++ I would be paying for state taxes can be used to travel and save, so I wonder if it is a big deal.

The interesting thing about New Hampshire from what I read is that all income is not taxed, which means your property taxes must be incredibly high. Where does the state gets it's income from? I will read about that, but just wondering now.

Regards,
Rob

[flu189]

When you rely on pension income and especially savings generated from 401/457/IRAs etc the tax bite becomes even more pronounced. Over the last four to five months a majority of folks who have diligently saved in these plans have seen some pretty substantial losses and setbacks. These losses combined with the fact that our state and locales continue to increase expenses billed to the taxpayer at rates exceeding income growth and inflation is very troubling. As far as NH goes, you do have to read the fine print past the no sales and income tax highlight. Depending on your assets, income, and other factors NH will npt in many cases be the better alternative.

[vter]

New Hampshire does have taxes on some incomes...I believe retirement is one of them. I've been known to be wrong though

EDIT - NH taxes dividends and interest over a certain amount.

[Ulysses61]

I have wanted to retire to Vermont for years but can't afford the property taxes. Take a state like Colorado, which has very favorable tax rates. Their property taxes are 60% less than Vermont and the first $50,000 of your retirement income they don't tax! Vermont taxes everything.

Vermont is too expensive (for me) to retire to. Sadly, because I love it there.