Best Retirement State on A Budget - Lowest Cost of Living? (fighting, music)
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Not exactly . . .Most retirees with income from savings appear to need to be concerned about taxes:
"A special 6% income tax called the Hall income tax applies only
to taxable interest and dividend income over $1,250 for individuals and
$2,500 for married couples filing jointly. Taxpayers over 65 with total income
less than $16,200 for a single filer or $27,000 for a couple filing jointly are exempt from this tax.
The Hall income tax, named after the state senator who sponsored it,
has been around since 1929 and hasn't been raised since 1937.
Only dividend or interest income from investments like stocks, mutual funds,
and corporate dividends is subject to this tax.
Interest from bank or credit union accounts,
the type of interest earned by most Tennessee residents,
is exempt from the Hall income tax."
I am not a tax accountant but you may need one.
Income from IRAs, 401k, 457 and much other retirement income is tax free. The hall tax is being phased out.
I think it's safe to say, there is no one particular state that "works" best for most retirees.
There are a few states with low overall tax burdens, most of them get a good bit of state revenue from taxes on mineral extraction - Texas and Wyoming come to mind. There are states with big governments that impose a high tax burden on the people - New York comes to mind.
The tax situation varies a good bit from county to county, city to city (if you retire to a city at all) within a state. My part of WA has a reasonable tax burden, not the lowest but reasonable. Go over to the "wet side" and the tax burden increases (property tax, mostly) considerably.
All that said, I still think the handful of states that have no state income tax are worth a close look to see if you can't find a good fit in one of them, if you plan to move when retiring, if you are not, like me, already there.
Location: We_tside PNW (Columbia Gorge) / CO / SA TX / Thailand
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Quote:
Originally Posted by M3 Mitch
I think it's safe to say, there is no one particular state that "works" best for most retirees.
...
All that said, I still think the handful of states that have no state income tax are worth a close look to see if you can't find a good fit in one of them, if you plan to move when retiring, if you are not, like me, already there.
and the RV choice... SD (no income tax) as your domicile and MT (No sales tax) where your LLC resides (that owns your expensive assets / vehicles).
Living on the border of said arrangement can be quite a benefit. (Living income tax free, and shopping / acquiring sales tax free). Very EZ to make that a 5 minute transaction. (if you are so inclined... which I am NOT, cuz my commercial tenants in Sales Taxed sate need my business!) I would rather get the $1,000's of investment income than save the $100's in Sales tax spending. But... There are A LOT of hard to source items I run to get plus extensive entertainment options in the industrial metropolis across the border.
It's a great deal! (But SD will get my domicile before I pay $280 for another 'WA enhanced DL' (that I cannot fly with)) cuz WA also gives DL and ID to illegals...
No idea OP, but following this thread, as I, and I expect many others, are sort of looking for the same thing! Hence my user name! I have not found this ideal location as of yet, but considering Delaware, Tennessee and a couple of mid-Atlantic/mid-western states. Every state seems to have a draw back or two, there is no perfect place, at least not in the US!
Not just the state either since no one lives across an entire state
People live in areas of states--either in towns (large or small) or rural location outside town (large or small)
Some areas can be very expensive--and some not so much
Looks like the new tax bill will really penalize anyone living in a state income tax state
A retired person likely wouldn't have to pay state income tax but guess it depends on your income
Personally I think rural areas with co-op electric on a well with a septic system --and maybe ability to put up a wind vane for electric power or some solar collectors...
But you want access to good medical care so that means being close enough to mid size town with decent hospital
Stephenville west of FT TX
Small towns outside larger towns -- like Gonzales or Seguin outside San Antonio--
Granbury or Glen Rose outside FTW
Google "blue states tax plan"
Multiple stories about the tax disadvantages proposed in this tax plan
Maybe you listen to Fox News--most others have referenced the punishment to blue states vs red since many blue states have state income tax (no write off) and higher home prices (limited to mortgage interest deduction on 500K homes)
You have described southern Nevada, which includes Las Vegas. You're not even close in describing northern Nevada.
True but 90 percent of Nevada is covered in desert and about 3/4 of the population lives in Las Vegas and the surrounding area and it's the driest state out of all 50. The tiny part of Northern NV that isn't desert, hardly represents the state.
True but 90 percent of Nevada is covered in desert and about 3/4 of the population lives in Las Vegas and the surrounding area and it's the driest state out of all 50. The tiny part of Northern NV that isn't desert, hardly represents the state.
The Reno/Sparks area has a population of 500,000. I'd hardly call it a tiny area.
The Reno/Sparks area has a population of 500,000. I'd hardly call it a tiny area.
I used to live in Reno many years ago and liked it very much. It still doesn't change what I said that 3/4 of the state population lives in and around Vegas. Reno, BTW s surrounded by desert except for the Sierras on one side and still sits in the brown desert with very hot summers and fairly cold winters.
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) cuz WA also gives DL and ID to illegals...
