Taxes in Retirement (55, federal, retiree, graduated)
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
Your original question is one a lot of people have and it is obviously important. If you have the freedom to move anywhere you want and you can find two similar situations but one is significantly tax advantaged - take it!
But there is another side of this too. My 94 year old mother has pretty much refused to move to from FL to CT (where 4 of her children live)and one of her chief reasons was taxes. When we met with her attorney to discuss their move into a FL assisted living facility, her lawyer was the first person to get her attention on the matter. He likened it to the tax tail waving the dog - something you shouldn't do. First find out where you want to live, and if that is important to you - do it! Living somewhere just for the taxes just isn't smart living (unless paragraph one applies).
The table is only a beginning point and gives you a snap shot. As you say the devil is in the details but helps you to know which areas you might want to know more about. It helps you to know a little about the affordability of a given area.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,660 posts, read 57,778,624 times
Reputation: 46126
Quote:
Originally Posted by Tesaje
Tables like that give a summary of income taxes. ... It is really hard to get all the information and foolish to just rely on tables with only one form of taxation to make your decision.
yes, do get a bigger picture...
for me income taxes = zero in my state; but I have no income... so that is not too beneficial.
property taxes = $11,000. That is ridiculous, and a fixed cost that climbs every year.
Sales tax = 8.2% and that includes services, and prepared food.. (Dr., Hospitals, attorneys, ), + excise tax on selling your home
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,660 posts, read 57,778,624 times
Reputation: 46126
Quote:
Originally Posted by forest beekeeper
Wow, that is high!
Do you have a lot of acreage?
Our property taxes on our home here is less than 1/10 of that.
We have an apartment building in Ct, it's property taxes are around 1/3 of your taxes.
6 acres each on separate parcels (12), one nice home we built as a homeschool project with kids, one trashed mobile home (my only residential rental) Very nice view... in National Scenic Area, kinda like a national park, no more homes allowed... (drives up the price of comparables, but also makes not want to sell)
cost basis ~ 10 yrs ago = $200k for both places
assessed Value today = ~ $850k x 0.148 mil levy
My commercial props WERE a lot less last year, but... the assessor got a burr in his saddle... everything went up ~ 70 to 150% last year. I gave my $80k career of 32 yrs away to China the year before (w/o pension or retirement or health care) .... now... waiting 8 yrs to be able to get to my "qualified" savings, (IRA, 401k) could be a 'long-dry-spell', especially if Wendy's goes broke (no more $0.99 chili for a daily meal)
We still get by on $10/week discretionary income, + $100/month in groceries and get 50 mpg on free grease in our 35 yr old car. It's the $1000/month in medical ins, and same in prop taxes that is killing me. (+ $47 in LTC, since both my dad & M-i-L 'checked out' of life and into managed care @ 50 till age 85)
janb... keep posting, I like to keep current on your research.
I know what you mean regarding WA taxes... NO INCOME TAX is only relevent to those with income.
Everyone has to live somewhere and WA property taxes border on obscene. 80% assessment increase in one year... just where to they think the money comes from?
The assessor told me that property is appreciating... so, I guess that would mean something if I did not need a house... anyway, I would have to sell to realize any gain... sort of defeats the purpose.
I think unrestrained property tax increases are the single greatest threat to quality retirement after health issues...
In my search for least expensive places to retire, I came across several websites that I found helpful. As someone else stated, income tax is only relevant if you have income. Many states do not tax retirement money. What you really have to look at is all the other taxes, with the biggest ones being sales taxes and property taxes.
Here's another chart (2003 data) that shows what the tax burden is by state. It is based on a family of four with $75,000 income, but it is still a nice comparison chart. It shows the biggest city in each state since tax rates vary from city to city, county to county. But you can get a good idea of how tax burdens differ across the country. CNNMoney.com: Big city taxes 2005, by rank
I for one am seriously looking at retiring to Tennessee. Even though they have one of the highest sales tax rates in the country, the overall burden is one of the lowest. Mix in nice climate, beautiful views, and nice people and you have a great area for living.
Is there a link somewhere that will tell me which States tax SSec. and/or annuities? We don't want to retire somewhere that will tax us on our SSec. and pensions. We're in PA right now and don't pay taxes on these two items. But we're definitely moving. At first we thought NY, but someone told me that they tax the heck out of our SSec. and pensions!
Thanks in advance.
The state of Tennessee will not tax your retirement pension or social security, but they will tax dividends and interest. My wife and I will be retiring in Tennessee in about 6 years.
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.
Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.