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.
I just returned home to north Texas from visiting my father in northern California. I was surprised after comparing both our cost. We are both retired and over 65, both our homes are valued approximately the same $350K. I purchased mine in 1983 and he in 1992, but this is where the similarity ends.
In California, he only pays $2050 for property tax I pay $5600 reduced from almost $7000 because I’m now over 65. My homeowners insurance has a 1% deductible for an insured value of $450K; he has a $500 deductible for on a $430K value and I pay more with zero claims.
His electric cost in the summer is $75 to $135 per month, mine is $175 to $400. My natural gas is $40 minimum, just because I pay for the line to the house, he pays $15 every two months. My water/sewer bill was $105 last month and I conserve.
He pays an average of $3.53 for a gallon of gasoline, I pay $3.19, and however, I could not fined one toll road in his area. I pay tolls going north or south, east and west average $6.00 per 2 gallons of fuel for 50 mile round trip. My cost $6.15 per gallon.
Could not find any difference in food or restaurant cost. He pays only a small amount of state and federal adjusted income tax, I pay 12% federal.
I also pay 8.25% sales tax in Texas; he pays the same.
For a retiree California seems to be better than Texas.
My wife and I moved to Murrieta CA ( Temecula Valley and hour north of San Diego ) when I retired 13 years ago. We have lived in Seattle, Ft. Lauderdale FL, Phoenix AZ, San Diego, San Francisco Bay area, Vancouver Canada, Mexico ( fluent in Spanish ), and Venezuela.
We were considering a move to Texas as our son and family lived there. However they moved to Monterey California so all is well. I did a very thorough comparison of the costs between Murrieta CA and Wichita Falls TX and came to the conclusion it would cost more to live in Texas. The high property tax in Texas more than offset the CA state income tax. Our sales tax is 8.00% which is lower. We live very well but pay very little state income tax because Social Security is not taxed. The cost of housing for a comparable home is very similar where we live compared to Texas.
Apart from the costs, we enjoy great year round weather, tons of recreational activities, very low crime, and a great place to live.
I like your post because you plugged in specific numbers instead of using generalities about states being high or low in the tax arena. Your conclusion supports what I have long believed and what I have posted many times, namely that although California is a high-tax state, it is not nearly as bad as many people would have us believe.
As a further example, let me cite state income taxes, which you did not address (and which you do not have in Texas, if I recall correctly). California has the highest marginal rate in the nation on state income taxes, but what many fail to realize is that the (admittedly horrendous) maximum rate applies only to that portion of a person's income which exceeds ONE MILLION DOLLARS. The rate structure is very progressive, which means that people with modest incomes of, say, $50,000 per year or less are paying no more in state income taxes than people in many other states. In other words, California has very high income taxes ONLY for people who are rich, or at least quite well-to-do (as "rich" is vague enough to provoke debate as to its meaning).
And social security is not taxed which lowers the income tax substantially for retired middle class people
I agree. I looked at my CA state income taxes paid in 2013 and it was about 6.5% on a taxable income of just over $100K. In 25+ other states in the US I would pay about the same or more state income tax on the same amount of taxable income. I live in a (high rent) apartment about 45 miles south of downtown LA and pay some of the lowest monthly utility bills in the developed world (average $20 / month electric + $10 / month natural gas.) Almost everything I need is within walking or bike riding distance.
If a person lives in an apartment or small, modest dwelling, it is possible to live comfortably in many (not all) parts of California at a total overall cost (including all types of taxes, insurance, utilities, groceries and other basic living costs) that is not much different from over half of all the other states in the US.
My retirement income is $92,000 from Social Security, dividends and annuities, Some of it comes from an IRA so it is taxed at normal rates. My total state income tax was $0.0 and federal income tax was $1726.
For a retiree California seems to be better than Texas.
As long as you are not in the San Francisco Bay area, Los Angeles, Orange County, San Diego, Santa Barbara, and a few other areas where housing is extremely expensive.
As long as you are not in the San Francisco Bay area, Los Angeles, Orange County, San Diego, Santa Barbara, and a few other areas where housing is extremely expensive.
But those are the areas where there is a lot of activity, population, good health care, things to do, etc. Most people don't want to live in the middle of nowhere, even if it's cheaper.
But those are the areas where there is a lot of activity, population, good health care, things to do, etc. Most people don't want to live in the middle of nowhere, even if it's cheaper.
I sure don't live in the middle of nowhere. Our metro population is 450,000. We have excellent health care, ton of things to do and very low crime. We live just an hour from downtown San Diego. n fact we have better access to a variety of things to do.
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.
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.
