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Researching states for the best tax advantages for retirees, Florida is rated the best. Carolina is a mixed bag. Wondering if the advantages are big enough to make a difference or is it really marginal. I know everyone`s finical situation is different, but has anyone put numbers to it?
I would not live in Florida based on income taxes, I would avoid Florida because of sinkholes and the heat.
North Carolina is nicer on both counts. Check, but I think our sales and gasoline taxes are lower. The weather is definitely better. Every time I call my Aunt in Miami she complains about the heat. I tell her when she left New England, she overshot the landing.
If you are on the east side of Florida, generally properties west of 95 have lower insurance rates if not on a floodplain, if you are in a condo/townhouse where the homeowners dues include insurance on the roof and outside, your insurance should be less than $500 a year unless you have expensive stuff insured.
South Carolina now is comparable to Florida in that when you register a car for the first time you pay a lot of money ($250 per vehicle). In South Carolina each year you have to pay property taxes on the vehicles in addition to any registration fee for that year though as a vehicle ages that goes down. If you have newer vehicles this can be a couple hundred dollars. In Florida you pay once then only pay registration fees and you can transfer plates to a new vehicle without paying the first time fees. In South Carolina if you buy a new vehicle you can transfer the plate but you still have to pay the Infrastructure Maintenance fee of $250.
Florida and North Carolina if you want near the coast are still susceptible to hurricanes as much as Florida and even inland as far as Charlotte has, though rare, received hurricane damage. I wouldn't concern myself so much with hurricanes unless you want to live right on the coast. Newer house in Florida are built to much better standards than in the past.
No Income tax in Florida so if you are taking money from investments and IRA's it is advantageous. Property taxes vary by county but generally are probably a little more than in South Carolina but you don't have to be 65 to receive the homestead exemption only a permanent resident. A $250,000 house in Florida would roughly more or less be $2,500 a year while in South Carolina more or less $1500 a year.
Auto insurance, no not higher than in South Carolina. It is about the same, at least it is for us.
Both South Carolina and North Carolina have winters. Summer, yes it is hot in Florida but it is still hot in South Carolina and North Carolina unless you live up in the mountains.
HVAC issues are only a concern if you live right near the beach. I live 15 mins from the beach, no problem. Same goes in Charleston and North Carolina. On the beach and they are eaten up.
To me it is not numbers as all in all they probably are in the same ballpark. You might save $1,000 over one state or the other a year. The real factor is where do you like the best. I would say to visit areas you might like and then decide what is best for you. All three states have the advantages and disadvantages.
Visited Franklin, N.C. in 2008, quite a few folks moved from Fl to NC because of the heat and bugs. Hendersonville, south of Asheville is a very popular retirement town, believe it's close to medical facilities.
Being single now (husband moved to Heaven) folks that have retired to the Olympic Peninsula, WA from the Southern states because of the heat think I'm crazy. That's besides the point ! This crazy female is thinking about living 6 months somewhere in the South to see if I can adjust to the weather there.
Franklin, N.C., people wondered why we so enjoyed it. So much to do there and the surrounding area-Bryson City, Dillsboro, and the fair in Sylva come September is not to be missed !
Unless you have lots of income in a state with high income taxes, the lack of same in places like Florida and Tennessee will likely be counter-balanced by other taxes and other factors, such as property taxes and homeowner insurance rates. There really is no free lunch.
For example, California has the highest marginal income tax rate in the nation at 13%. That sounds horrendous, but it only applies to that portion of income which exceeds one million dollars. For most of us (and most of us are NOT fat cats) the rates are much more reasonable.
I have never quite understood selecting a place to live based on taxes. It seems to me living in a place where you enjoy the climate and enjoy the other factors would trump all the quibbling about taxes. For example, you couldn't PAY me enough money to live in Florida. I would much rather live like I now live (fairly modestly) in California than have an income of $ one million a year and live in Florida. The decision wouldn't even be close.
I would not live in Florida based on income taxes, I would avoid Florida because of sinkholes and the heat.
North Carolina is nicer on both counts. Check, but I think our sales and gasoline taxes are lower. The weather is definitely better. Every time I call my Aunt in Miami she complains about the heat. I tell her when she left New England, she overshot the landing.
"Tennessee also has no income tax"
Fl is a long state and the climate is a lot hotter in Miami than Central and Northern Fl. Will agree summers are hot.
Unless you have lots of income in a state with high income taxes, the lack of same in places like Florida and Tennessee will likely be counter-balanced by other taxes and other factors, such as property taxes and homeowner insurance rates. There really is no free lunch.
For example, California has the highest marginal income tax rate in the nation at 13%. That sounds horrendous, but it only applies to that portion of income which exceeds one million dollars. For most of us (and most of us are NOT fat cats) the rates are much more reasonable.
I have never quite understood selecting a place to live based on taxes. It seems to me living in a place where you enjoy the climate and enjoy the other factors would trump all the quibbling about taxes. For example, you couldn't PAY me enough money to live in Florida. I would much rather live like I now live (fairly modestly) in California than have an income of $ one million a year and live in Florida. The decision wouldn't even be close.
Taxes/cost of living is just one piece of the retirement puzzle. For us, in moving from Florida to Tennessee' our property taxes are about the same. Sales tax is higher in Tennessee but homeowners insurance dropped dramatically and auto, umbrella and medigap all went down in price. Got a much nicer house for the $ then we had in Florida, so financially the move was a plus.
Then we get all the other bonuses. Love the climate, terrain, pace of life and the people. Really like no longer having to watch to see when the next hurricane might head our way. Lucked out with Matthew last October and will not miss that crap.
Always planned on retiring to the North Carolina mountains where we have land. But got priced out of our range to build on it and existing homes are pretty pricey. Then when they went to the flat tax on IRA distributions that led us to look elsewhere.
That is what is so great about this country. No matter what is important to any person, if they look hard enough they can usually find somewhere that suits them.
Which "Carolina" are you talking about ?? There is a difference between taxes in North and South Carolina.
I can speak to South Carolina. The Palmetto State offers many exemptions for Senior Citizens. Pensions and Social Security are not taxed. And the first $15K of earned Income is exempt for Filers over 65. I had a pretty good year last year with those three sources of Income......and I only owed the State $10 in Income Tax.
Actually, pensions are taxed. The $15k exemption applies to any income, including pensions. After that, any excess is taxed at 4%.
South Carolina now is comparable to Florida in that when you register a car for the first time you pay a lot of money ($250 per vehicle). In South Carolina each year you have to pay property taxes on the vehicles in addition to any registration fee for that year though as a vehicle ages that goes down. If you have newer vehicles this can be a couple hundred dollars. In Florida you pay once then only pay registration fees and you can transfer plates to a new vehicle without paying the first time fees. In South Carolina if you buy a new vehicle you can transfer the plate but you still have to pay the Infrastructure Maintenance fee of $250.
I think the "couple hundred" is misleading. That may be on a vehicle of low value and several years old, but a newer vehicle valued higher is going to be much higher than that. For example, if you have a car less than 2 years old worth 25k, then you can expect to pay somewhere between 6 and 800 dollars the first year. And the reduction on a yearly basis is not that great.
If you drive anything like a MB, Cadillac, BMW, Lexus, etc. that approach's 40k or more, expect to pay 1200-1500 dollars the first year and 1100 the second, etc.
This is the one tax in SC that I hate. Oh, and depending on where you live, the sales tax can be as high as 9 percent here.
You have to break it down from the state level. I can drive 3 miles and the sales tax goes up 3%. I can drive 2 miles and the property tax doubles.
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