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.
Right.
No sales tax might be great, but see how that's being made up for in other taxes. A bad winter might be okay if the cost of living is low enough to let you spend part of the winter elsewhere.
Remember, too, that for some people, it's best not to move to a new place for retirement. Consider where your loved ones are and be sure you won't end up feeling isolated and far from friends or family.
^^ This ^^ It's the only reason I'm still here in SW Florida otherwise I would be out of here asap.
I am sure countless people here have already crunched the numbers and done the math. Bottom line: which states are the cheapest for retirees taking into consideration housing costs, COL, taxes (including on retirement income), etc.?
It depends if you buy or rent and factors like cost to heat and cool your dwelling. I would say SE Kansas and SW Missouri as well as NE Oklahoma. That corridor has some of the lowest housing prices in the country, has lots of safe communities and mild climates.
Surprised TX is not on your list. Housing in most parts of TX is very reasonable. I would take Louisiana out. Sales tax is high, housing is high relative to other southern states, as is car insurance. Homeowners insurance is high in south LA due to hurricane risk. Louisiana probably has one of the highest COL of all the southern states, especially south LA.
Texas has gone up in price in the metro areas, even more remote areas have one up. And property taxes are about 3 times what they are in many other states. Sure there is no income tax but for retired people the bigger issue would be rising property tax rates. A $300,000 house could be close to $10K a year in property taxes.
Texas has gone up in price in the metro areas, even more remote areas have one up. And property taxes are about 3 times what they are in many other states. Sure there is no income tax but for retired people the bigger issue would be rising property tax rates. A $300,000 house could be close to $10K a year in property taxes.
Texas, or at least parts of it, throws a bit of a bone to people aged 65+. Someone who's interested can go to the Texas city-data forum and read about it, or go to the county assessor website of their location of interest.
We own a totally not fancy ranch house on 10 acres in VT. Taxes approx $4300 last year. $1700'ish for the town (which we have no quarrel with) and the rest for the 'education tax.' That's how VT pays for its 'education.' But it IS income based and since I retired last year, we will see what THIS year brings. The state adjusts based on income. I'm waiting to see just what we will owe this year.
Since I completely expect the 'adjustments' to be reduced over time, I am ready to leave.
To me, those high property taxes can be a huge disincentive to relocate.
I live in TN. I pay no state income tax. My city and county combined property tax rate is about 1% of the market value of the home. I’d need about a $400,000 home to get that kind of property tax bill locally. That’s not a mansion here, but it would be a very nice home, and probably much nicer dollar for dollar than I could get in VT.
The issue is that I am geographically isolated, a couple hours from anything else of note, and in the most conservative region of one of the most conservative states in the country. I’m from a liberal, but the social/political climate is just stultifying.
It depends if you buy or rent and factors like cost to heat and cool your dwelling. I would say SE Kansas and SW Missouri as well as NE Oklahoma. That corridor has some of the lowest housing prices in the country, has lots of safe communities and mild climates.
No, Kansas has very high regressive taxes, that include steep sales taxes and high property taxes for having next to no tax base. Housing prices are only low because of extreme population declines, business closures, and few amenities and services.
To me, those high property taxes can be a huge disincentive to relocate.
I live in TN. I pay no state income tax. My city and county combined property tax rate is about 1% of the market value of the home. I’d need about a $400,000 home to get that kind of property tax bill locally. That’s not a mansion here, but it would be a very nice home, and probably much nicer dollar for dollar than I could get in VT.
The issue is that I am geographically isolated, a couple hours from anything else of note, and in the most conservative region of one of the most conservative states in the country. I’m from a liberal, but the social/political climate is just stultifying.
I used to live in NH, property taxes vary extremely depending on what town you live in as every town has a different equalized tax rate:
I could buy a relatively cheap house in a town like Wakefield or Freedom by the Maine border down the line if I can keep my present position and WFH permanently- and then a good option for retirement as well. The property taxes range in the $1,500-2,500 range a year for an average house which I consider to be acceptable. I pay $1,400 a year in southern Indiana, and in New Hampshire you usually get far more acreage even if property taxes are more.
Last edited by GraniteStater; 04-23-2021 at 12:00 PM..
I could buy a relatively cheap house in a town like Wakefield or Freedom by the Maine border down the line if I can keep my present position and WFH permanently- and then a good option for retirement as well. The property taxes range in the $1,500-2,500 range a year for an average house which I consider to be acceptable. I pay $1,400 a year in southern Indiana, and in New Hampshire you usually get far more acreage even if property taxes are more.
I used to live in Indianapolis.
I’d consider Indiana to be a middle of the road state in terms of taxes, but property prices and even smaller things like food and car insurance were much cheaper in similar communities vs. here in TN that much, if not all, of TN’s tax advantages were offset.
At the time, my car insurance was so much more expensive in TN than IN that the higher insurance more than offset IN’s higher registration fees. You’ll pay a lot more for the same house in Franklin, TN vs. Fishers, IN. Somewhere like Madison
NH has no income or sales taxes IIRC. That would make the property taxes a lot more palatable.
I'm no fan of the cold, snow, and heavily salted roads, either.
I actually LIKE cold and snow and, as long as I'm retired, won't have to drive anywhere. Maybe I can get a good deal in the snowbelt that everyone else longs to leave?
I’d consider Indiana to be a middle of the road state in terms of taxes, but property prices and even smaller things like food and car insurance were much cheaper in similar communities vs. here in TN that much, if not all, of TN’s tax advantages were offset.
At the time, my car insurance was so much more expensive in TN than IN that the higher insurance more than offset IN’s higher registration fees. You’ll pay a lot more for the same house in Franklin, TN vs. Fishers, IN. Somewhere like Madison
NH has no income or sales taxes IIRC. That would make the property taxes a lot more palatable.
I live in western Floyd County, IN NW of Louisville. The hilly terrain and woods are similar to Madison, IN or other locations in the southern region of the state. The housing market is very strong at the moment, I bought in July 2019 over here luckily.
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.