Tax rates for retirement in Idaho. (Rexburg, Salmon: how much, house, to buy)

[ScottStielow]

Hi everyone.
I’ve been reviewing the tax rates for retirees, in SE or central Idaho. Looks like I’ll be paying income tax off of my Military retirement and my Fers. I’ll be 62 when I plan to retire, but will not apply for SS Until age 65.
Planning to work for a few more years.
Social Security benefits are not taxed.
I am planning to buy a small house to try to offset some of the taxes on my retirement pay.

The income tax rate in the link. There is column 1 the tax rate ranges from 1.6 to 7.4 percent on Idaho taxable income. Is that monthly income or yearly? If I am reading it correctly looks like I’ll be paying 7.4% or what is shown if you are Single rate or Married. Just trying to figure my budget for retirement.
Any inputs will be appreciated. Thank you for your time and response's.

Scott

Individual income tax - Idaho State Tax Commission

[volosong]

I cannot address your latter questions, but do have a comment on when you plan to apply for Social Security benefits. I'll assume that you are pretty close to retirement, sounds like you are in your very late 50s. Something you need to consider, especially if you are planning to work after you retire is that your monthly benefit will be reduced by one dollar for every two dollars you earn in work income. After you reach your Full Retirement Date, then that restriction is lifted. No knowing your year of birth, we can't say what your Full Retirement Date is.

For me, it is 66. What that means is that if I work between age 65 and 66, I'll lose a buck, (of SS income), for every two I earn from my employer. Something to think about since you are trying to do some budgeting. If you won't be working, then no worries. Your benefits won't be reduced. If you are going to work, then think long and hard about how much you will be earning. It just might be worth it to wait an extra year before claiming benefits. You'll also get more per month by waiting that extra year.

Good luck, and thank you for your service to our country. Like you, SE ID is near the top of the list of my potential retirement homes. I'm focusing my interest on the Teton Valley right now. Maybe Rexburg, but I think I'd rather be closer to the hills.

[folkguitarist555]

Me too, I am heading out to check out IF with boots on the ground, next week. I will be meeting with a realtor there, to have a look at homes and the area altogether, IF is one of the places on my short list as well, for retirement. I understand that the winters are pretty tough though.

[ScottStielow]

Originally Posted by volosong

I cannot address your latter questions, but do have a comment on when you plan to apply for Social Security benefits. I'll assume that you are pretty close to retirement, sounds like you are in your very late 50s. Something you need to consider, especially if you are planning to work after you retire is that your monthly benefit will be reduced by one dollar for every two dollars you earn in work income. After you reach your Full Retirement Date, then that restriction is lifted. No knowing your year of birth, we can't say what your Full Retirement Date is.

For me, it is 66. What that means is that if I work between age 65 and 66, I'll lose a buck, (of SS income), for every two I earn from my employer. Something to think about since you are trying to do some budgeting. If you won't be working, then no worries. Your benefits won't be reduced. If you are going to work, then think long and hard about how much you will be earning. It just might be worth it to wait an extra year before claiming benefits. You'll also get more per month by waiting that extra year.

Good luck, and thank you for your service to our country. Like you, SE ID is near the top of the list of my potential retirement homes. I'm focusing my interest on the Teton Valley right now. Maybe Rexburg, but I think I'd rather be closer to the hills.

Thank you Volosong for the advice. I plan to not apply to SS until age 67, and real retirement begins. Will work another five years. Will be 62 when i move. Will be using my Military and Fers retirement until then.
I'll start visiting the area in about two years from now to refine where i will end up. This is one of two of my top area's, IF and Salmon. The other is in the Star Valley Wyoming area. I too like the mountain area's.
Thanks again the advice, Appreciate it.
Scott

[ScottStielow]

Originally Posted by starrider434

Me too, I am heading out to check out IF with boots on the ground, next week. I will be meeting with a realtor there, to have a look at homes and the area altogether, IF is one of the places on my short list as well, for retirement. I understand that the winters are pretty tough though.

Best of luck with your visit starrider. Yes the weather is going to be interesting to experience. I will visit at this time of the year myself in a couple of years. To test the weather, if i will have any health issues. I haven't in the past coming from Warm weather to cold right away. So we shall see. Be sure to pass on any information after you visit the IF area.
Enjoy your visit, and good luck on the house hunting.
Scott

[rumaco]

Idaho is a terrible state to retire in as Military. I was born and raised in Idaho and left when I was 62 and retired totally. I retired from the Military in 1991 and Idaho raped me over it.......................not giving another dime to this state.....