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Old 10-04-2015, 05:08 PM
 
Location: East TN
11,043 posts, read 9,672,605 times
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Quote:
Originally Posted by Pretzelogik View Post
9 percent on taxable income between $8,251 and $125,000

Read more: State Taxes: Oregon | Bankrate.com
Follow us: @Bankrate on Twitter | Bankrate on Facebook The Oregon rate of 9% kicks in at $8,251.
Yikes!!
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Old 10-04-2015, 06:27 PM
 
Location: Tennessee at last!
1,884 posts, read 3,019,995 times
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Disclaimer first: I am not retired yet. I have 1 1/2 years before I can retire, but I have done my research and know what my plans are.

I looked at the 3 main forms of government funding (aka taxes) like a triangle. Every state uses some form / amount of them to fund their activities. One state may have a larger amount of one than another. They are sales taxes, property taxes and income taxes.

Having lived in the NE for ten years I was very familiar with property taxes increasing to the point that they were unaffordable. Now I live in CA and there is an old proposition that limits how much property taxes can increase, so one is less likely to be taxed out of their property. But that is NOT the norm for most states. Many states have some reduction in property taxes for the elderly/poor/disabled, but I likely would not qualify for that discount. So for me property taxes were a big consideration. I do not want to have to move at 70 years old when I can not afford the property taxes.

For the income taxes, I looked at the way that income is taxed, or not, as in the rate schedule. I also looked at the TYPE of income that is taxed, or not. Some states do not tax SS, some pensions, some government pensions, some retirement savings. Some only tax special income, like TN's interest and dividend, for non-bank/non-TN bonds. So with this information I looked at my expected retirement income and identified the states that would tax the least of my expected income, and at the lowest rates, if any.

Then the sales taxes....well this one I do not think will be come unaffordable as I can control what I buy. A 'bonus' in my considerations is if it was low. BUT then again, I live in CA and am used to high state and high county sales taxes. And not surprisingly I in the end chose a state with high sales taxes--TN.

____________

But in my consideration as to where I would retire, the taxes were only a part of the equation. I am retiring with two kids who will be turning 14 near when I retire, so I gave consideration to living in a place that they would be happy and have activities they like--boating, water play was a major consideration. I also wanted some medical services nearby, some restaurants, shopping (for every day things, we are not major shoppers), and most importantly an affordable decent (as in clean and not trashed and full of homeless folks hanging around) airport somewhat nearby with easy access to it. I wanted someplace that was central to travel, e.g. I like Hawaii, but it would add a day to many of my travels.I like to travel.

My kids are adopted from a foreign country so I wanted an area where they would be accepted. I wanted a smaller friendly town, but with college or trade school type of opportunities within an hour drive. Public transportation would be a bonus (and I did not get that one either).

I wanted a lower/middle overall cost of living area. I wanted a place with some Farmer's Markets, locally grown produce, etc. (Still not sure if I scored on that one.)

I also looked at the types of places that I like living, and in that regard am fortunate to have traveled a lot with my work. I did NOT want to live in the desert. I like mountains, lakes, and rivers. I like cold better than hot, but dislike shoveling snow everyday all winter long. I did NOT want to live along an international border..no never again!

I think that looking at the financial aspect lets you know where your money may go further and last longer, but in the end it has to be a quality of life decision.

In the end my kids and I choose Crossville TN and we bought property there. For now it is a vacation get-away.
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Old 10-04-2015, 07:37 PM
 
16,373 posts, read 30,153,235 times
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Quote:
Originally Posted by bigbuglf View Post
Interesting information. The tax on vehicles here is a lot more, until your car gets old. So are you happy with living in TN over CA, other than the tax situation?

The cost for registering my car in Illinois (2007 Toyota Corolla) was $104 EACH YEAR.

The cost for transfer of title, registration of the vehicle for TWO years (including tax), and a driver's license good until I turn 65 in 2024 was $152 total.
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Old 10-04-2015, 10:48 PM
 
Location: Florida
7,750 posts, read 6,323,455 times
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It is important to look at cost of living as well as taxes. The AZ retirement communities are full of refugees from the high cost of living in the Pacific northwest.
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Old 10-04-2015, 11:46 PM
 
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
34,655 posts, read 57,732,068 times
Reputation: 46105
If Oregon is a thought... think 2 minutes further north (WA), live in WA and shop / re-create in OR.


Web sites with 'tax info' are very weak... each area has many options / changes. (I have 2 homes 1 minute apart, same cost basis, one is taxed at $1400 per yr and one at $15,000 per yr). so ,,, be wise (and specific) in you searching.

Make yourself up a retirement spreadsheet, and weight what is important to you.
Plug in the numbers, see which destinations work best. I included taxes(sales, property, income, vehicle, personal property) / resale values, energy costs, recreation . commute to international airport, grocery pricing


I did that, and it told me to stay put, as other locations scored lower. (I really expected and wanted to move to a lessor expensive area, (possible in short term, but running a 10+ yr modeling scenario. BOUNCED me out of my 'perfect-choice') By a Large sum.

BUT... it is all NOT financial. Include a lot of social perks / medical and future care needs. Data projections can be very enlightening (and they can be wrong).

What do YOU want! (to enjoy in 'later' life). I too retired pre-age 50.

Common domicile for retirees is SD. One overnight stay per lifetime to establish tax free domicile. BE CAREFUL to stay on the move and not trigger domicile in a greedy state like CA.

Quote:
It is important to look at cost of living as well as taxes. The AZ retirement communities are full of refugees from the high cost of living in the Pacific northwest.
Note, that there are MANY ways to live very cheap in desirable locations. This board has LOTS of ideas.. from living in a nice MHP in Santa Cruz or Sedona, (very inexpensively). to rural USA. I can grow / glean most of my food in PNW. I have raised my family on $100/month for food and entertainment in PNW, CO, Asia, Europe. (today in Hill Country TX doing the same).

Healthcare can kill you (pre medicare).. so today I'm uninsured and keep a ticket booked for a medi-vacation (how 'socialized medicine' country's of western Europe have got GOOD care for many decades)

Last edited by StealthRabbit; 10-04-2015 at 11:56 PM..
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Old 10-05-2015, 04:39 AM
 
Location: Los Angeles area
14,017 posts, read 20,862,459 times
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Quote:
Originally Posted by jlawrence01 View Post
Some random thoughts.

1) If you are low to middle income, taxes should not be a prime consideration in your move. ..............

4) The BIG LIE that gets repeated over and over on this forum is that taxes DON'T matter in retirement because they'll get you one way or another. That is crazy. Each state may collect taxes in different way but the total taxation is much lower in states like Nevada or Arizona than they are in Ohio and Illinois. I have the scars to prove that. On the flip side, there are fewer services provided and less bureaucracy. Personally, I prefer higher sales taxes as a good number of services and items are NOT taxed and I spend less than my income.
.....................
Aren't you contradicting yourself there? First, "taxes should not be a prime consideration...." and next it is the "BIG LIE" that taxes don't matter. Perhaps you meant in #4 that it's a big lie for those with high income. In that case it would have been nice to specify.

Sure, I agree with you that the total tax burden for retirees is NOT going to be the same in every state. The real question is just how much the differences are and at what income levels the differences really matter.

In my case, I live in a high-tax state (California). There is no denying that. But I have been following discussions about taxation in this Retirement Forum for five and a half years now; over and over again as people have given information about taxes in their various states, it has become clear to me that California is very little worse than many, many other states, and that indeed, they'll get you one way or another.

Let's take the example of state income taxes. In 2014, I paid a total of $3500 (rounded off to the nearest $100) in Calif. income taxes. Just considering that tax alone, if I lived in one of the eight or nine states with no income taxes, I would have saved $3500 over an entire year's time. How is that a big deal? What does approx. $300 a month more or less mean? It doesn't mean diddley squat, especially considering my very reasonable property taxes and the fact that I don't pay any sales tax on groceries. Admittedly, if I were a high income person, that income tax bite would be, as a percentage of income, much more severe.

But for us folks of modest incomes, it's all much ado about nothing.
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Old 10-05-2015, 04:53 AM
 
106,173 posts, read 108,140,134 times
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new york city tax wise isn't so bad for a retiree . we have the first 20k in pension not taxed if not a gov't pension and no tax if it is . ny does not tax social security .

we have one of the highest allowances in the country for not paying state estate taxes .

we have an excellent state partnership plan for long term care insurance . likely one of the best in the country along with up to a 1600.00 tax credit on a plan.

so yes , cost of living is high but there are perks .
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Old 10-05-2015, 08:03 AM
 
Location: Northern Wisconsin
10,379 posts, read 10,871,360 times
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You have to consider State income tax rates in general, whether a state taxes SS and what if any pension income, and finally, which many web sites on taxes overlook, property taxes.

That means, imho, certain states are immediately excluded; Neb. Kansas just being two of them, because they have income taxes and tax SS. Texas is not the best, even though there is no income tax at all, because of the high property taxes. But a place like Texas can still be considered, depending on what you're looking for. Some locations have very high property taxes, and yet some small towns will have very affordable taxes on property. So the bottom line is, you'll have to do some homework.
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Old 10-05-2015, 08:10 AM
 
Location: North Idaho
2,394 posts, read 2,999,527 times
Reputation: 2934
Quote:
Originally Posted by Escort Rider View Post
It doesn't mean diddley squat, especially considering my very reasonable property taxes and the fact that I don't pay any sales tax on groceries.
California is quite unique in that if you've lived in your home for a long time the property taxes are typically quite low as a result of Prop 13. I believe there is also a way to transfer those low taxes to another property if you are a senior and you are moving to another home.

Beware though that the Legislature has had it's eye on repealing Prop 13 for the past several years, so keep your eye on that. Not saying it's going to happen, but it's not out of the question given the current composition of the legislature.

Overall though I agree with your point that it seems states will get their money one way or the other through some combination of income, sales and property taxes. It's up to each individual to assess which of those will bite you worse, and consider that in any decision about moving to another state.

Dave
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Old 10-05-2015, 08:21 AM
 
Location: NC
9,348 posts, read 13,996,179 times
Reputation: 20857
I have to agree with Cnynrat about CA. The tax burden re property taxes is MUCH different for someone moving into the state than for a long time property holder already living in CA. There are also those interesting local taxes called MelloRoos or something, which are fair, but should be investigated before making a purchase decision.
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