Costs Bristol TN vs Bristol VA (sales, rental, insurance)

[donsabi]

What is the living costs comparing Bristol TN to Bristol VA. Assume the housing is a rental at the same cost and income is retirement with SS as the main income supplemented with a pension.

TN does not tax SS or pensions. VA, no tax on SS but I think they do tax pensions. However I think VA gives people over 65 a $12K deduction. I think VA sales tax is less than 5% and TN is just under 10%.

How do other costs stack up state to state?

[Serious Conversation]

You also have a vehicle inspection you have to pass in VA. You can always just run over the VA line and save on tax.

[donsabi]

I remember reading about a Bristol TN resident who inadvertently bought a furniture set in Bristol VA. The TN tax squad went after her and prosecuted.
You might get away with buying groceries but lookout if you buy a major item and don't pay TN their fair share.

[toprudder]

Perhaps this URL will help you research these locations:

Moderator cut: link removed, competitor site

[Serious Conversation]

Originally Posted by donsabi

I remember reading about a Bristol TN resident who inadvertently bought a furniture set in Bristol VA. The TN tax squad went after her and prosecuted.
You might get away with buying groceries but lookout if you buy a major item and don't pay TN their fair share.

I have never heard of this occurring. You are supposed to voluntarily disclose that on your TN tax returns, but someone going over the VA line and paying cash for a set of tires or something is essentially untrackable.

[DubbleT]

The few large things I've bought in VA for delivery or installation in TN were charged the TN rate of tax at the time of purchase. Lowes, Best Buy and some mattress store were all sure to tell me I was paying the higher rate because of my TN address.

[donsabi]

The retailer should charge TN tax at the time of sale. Sometimes that doesn't happen. I am no tax authority but I believe it is up to the individual to report such things on the TN income tax.

I am sure that buying non retail would be difficult to track and therefore untraceable. If paying cash or not needing delivery one could give a false address.

[CSRSJim]

Originally Posted by donsabi

I think VA sales tax is less than 5% and TN is just under 10%.

It looks to me like the TN state sales tax is 7.0% plus many localities add 2.25%-2.75% for a total of about 9.5%. Also, TN taxes food at 6% and many other states don't tax food; I think VA is 2.5% on food. This list has the local sales taxes. Rates listed include the county and local tax rate.
http://state.tn.us/revenue/pubs/taxlist.pdf

VA sales tax is 4.3% plus 1% local for a total of 5.3% in most areas.

IMO, sales tax is not as big a factor as some may think except on large ticket items like cars. Many living costs don't have sales tax (mortgage, insurance, etc). Calculate the actual amount of your spending on items that have sales tax and from what I estimate the difference between states is typically less than a few hundred per year. However, my estimates between VA and TN has a significant difference maybe a full $1,000 per year due to the rate almost double and the sales tax on food.

With significant pension or investment income, the VA income tax will be more than the savings in sales tax. But if Social Security is most of your income, then the sales tax might be larger. Put some estimated numbers in (Pension, investment, amount on sales tax items). For what it is worth, the IRS tables for the sales tax option for a single exemption filer with $45k income show $794 for TN and $368 for VA (your spending level may differ). See instructions for form 1040.