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Several people in this forum over the years have said they decided not to retire in New Mexico because the state taxes Social Security income. The Legislature just passed a bill that would end state tax on Social Security for seniors whose income is below $100,000. I wonder how many people that would affect?
Will this draw more retirees to the state? More than recreational pot?
It's something I'm happy about. I currently live in Virginia, and I am retired. I start collecting Social Security later this year. Virginia does not tax Social Security. My wife and I really want to move to NM and have held off due to taxes. This will be a game changer for us. It's going to make a difference to us.
It's going to help a lot of seniors already living in NM. I don't think the legislature passed the bill to attract retirees to NM. It passed it to help NM citizens.
It's going to help a lot of seniors already living in NM. I don't think the legislature passed the bill to attract retirees to NM. It passed it to help NM citizens.
Well most NM seniors were not taxed on their SS anyway before this, since their income was too low to be taxed. This legislation would do nothing to help that group. It will help more well-off retirees who have other retirement income who don't really need the "help."
Wealthy retirees aren't citizens? Perhaps saying "driving up costs for current residents of the state" would be more accurate.
That has already happened, I can assure you of this. That, as well as the inevitable interest rate hikes are going to knock out what would have otherwise been first time home buyers on the fringe. To that point, I am referring to nurses, police, EMS, teachers, all of which are hanging on now by their fingernails. When it costs more to borrow money, the aforementioned in-state residents are going to be largely disqualified, and that's a damned shame.
Several people in this forum over the years have said they decided not to retire in New Mexico because the state taxes Social Security income. The Legislature just passed a bill that would end state tax on Social Security for seniors whose income is below $100,000. I wonder how many people that would affect?
Will this draw more retirees to the state? More than recreational pot?
It takes away a reason for people to not consider NM as a place to move. NM is maligned on a number of financial web sites for taxing S/S and this may remove that hurdle. We need to address crime stats and our poor education results that always seem to move us to the bottom of the list.
I also doubt that recreational pot is going to draw many to the state.
Well most NM seniors were not taxed on their SS anyway before this, since their income was too low to be taxed. This legislation would do nothing to help that group. It will help more well-off retirees who have other retirement income who don't really need the "help."
Quote:
Originally Posted by Ruth4Truth
It's going to help a lot of seniors already living in NM. I don't think the legislature passed the bill to attract retirees to NM. It passed it to help NM citizens.
It will help both ways. I have seen comments where the taxation issue kept people from retiring in NM. I question whether most SS recipients are not being taxed although I would think that there are many who would fall into that category.
When I moved to NM my taxes went up because of the way they handled social security income -- but also because my retirement income from public service is fully taxed. My former state taxes were quite low because of that so there was a big change -- but not enough to offset the choice to move here.
NM has a lot of oil boom revenue that might go away at some point and taxing SS is "low hanging fruit" when there is a revenue crunch so we should enjoy it while it lasts.
Save me a spot at the table. I'm moving there from Virginia.
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