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Sweet Spot, Living Where Low Taxes
09-12-2018, 11:20 PM
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#1
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Full time employment: Posting here.
Join Date: Dec 2012
Posts: 656
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Sweet Spot, Living Where Low Taxes
Are there sweet-spots to live in US to get lower taxes?
For instance, living in FL-no income tax, but living near a border state that may have lower sales tax. Or low real-estate tax in the state but a border state has low sales tax.
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09-13-2018, 12:17 AM
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#2
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Dryer sheet aficionado
Join Date: Mar 2012
Posts: 40
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Washington state has no income tax. Oregon has no sales tax. Not exactly the best shopping in North Eastern OR (it is pretty remote and rural) but you could live in SW Washington and take advantage of no sales tax in Portland and NW Oregon area. Depending where you are though constantly battling traffic going back and forth across Columbia River could get old.
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09-13-2018, 04:32 AM
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#3
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gone traveling
Join Date: Dec 2015
Location: Berkeley, Denver, CO, USA
Posts: 1,406
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If you are going to play this game, don’t forget property taxes and homeowners’ insurance.
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09-13-2018, 04:36 AM
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#4
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Thinks s/he gets paid by the post
Join Date: Nov 2008
Posts: 3,395
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Quote:
Originally Posted by davebarnes
If you are going to play this game, don’t forget property taxes and homeowners’ insurance.
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Also look into the car insurance and gas tax.
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09-13-2018, 05:01 AM
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#5
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Thinks s/he gets paid by the post
Join Date: Dec 2010
Location: Midwest
Posts: 1,789
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When checking property taxes per state, be sure to include possible senior discounts/exemptions. (Many are only for "low income" seniors, based on AGI, while some take assets into consideration.).
I have always liked that Texas has no sales tax, but their property taxes are quite a bit higher than I currently pay. Personally, with lower income in retirement, the property taxes are a larger concern.
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09-13-2018, 05:12 AM
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#6
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Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Dallas
Posts: 1,150
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Quote:
Originally Posted by davebarnes
If you are going to play this game, don’t forget property taxes and homeowners’ insurance.
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Second that. I live in Texas and we have no income tax which is great while I am making salary over median income. But the property tax is high (to me) and 8.25% sales tax in our county. A median home of $250K at median tax rate of 2.25% will cost $5625 in real estate taxes every year.
PS: In retirement, you should be looking at real estate tax (actual dollar amount, not percent) and sales tax rate if you can manage your taxable income. If you will have lot of taxable income then income tax is back in the mix. I don't plan to move from the great state of Texas but I plan to move to rural property which will have lower real estate tax due to its price.
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09-13-2018, 05:13 AM
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#7
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Full time employment: Posting here.
Join Date: Nov 2017
Location: solomons
Posts: 849
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liquor tax, county add on tax etc etc, they all get you somehow right...
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09-13-2018, 05:23 AM
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#8
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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They get their money one way or another.
Buying your state specific muni bonds are one way I found to fight back. Sales taxes can also vary by county, so making big purchases in one versus another may also help.
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09-13-2018, 05:59 AM
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#9
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jan 2018
Location: Tampa
Posts: 11,233
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It's a tough combo. FLA overall is still much cheaper then the Northeast except very select places. No state tax and cheaper housing still goes a long way
It is all relative. People here complain about the high car insurance rates (especially compared to the Midwest), but our car insurance is half of what it used to be.
__________________
TGIM
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09-13-2018, 06:38 AM
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#10
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Dec 2014
Location: Huntsville, AL/Helen, GA
Posts: 6,002
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Alabama property taxes are ridiculously low. My $400k lake house taxes are $1147 next year. Our main home has no property taxes because my wife is disabled.
Our best thing is the low house prices--less than half the cost of houses 100 miles north. Cannot imagine a lower cost of living anywhere.
And having 3 premier fishing lakes (Pickwick/Wilson/Wheeler) in the middle of town works well.
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09-13-2018, 07:20 AM
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#11
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Thinks s/he gets paid by the post
Join Date: Dec 2016
Location: DC area
Posts: 2,479
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The Tax Foundation has a nice map of state and local tax burden here https://taxfoundation.org/publicatio...rden-rankings/
The methodology page lists 26 different taxes included in the calculation. Every one mentioned here and then some are included.
__________________
FI and Semi-ER March 24, 2017
Consulting to stay engaged
"All models are wrong, some are useful." - George Box
“There is always a well-known solution to every human problem: neat, plausible, and wrong.” - H.L. Mencken
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09-13-2018, 07:22 AM
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#12
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gone traveling
Join Date: Sep 2018
Posts: 11
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All I know is don't come to New York...
I hear a lot that Texas is the way to go. Unless you're willing to go to Alaska... that's probably the real winner. :P
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09-13-2018, 07:27 AM
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#13
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2002
Location: Texas: No Country for Old Men
Posts: 50,004
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Quote:
Originally Posted by i-like-gin
I hear a lot that Texas is the way to go.
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Nope. High property and sales taxes.
__________________
Numbers is hard
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09-13-2018, 07:54 AM
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#14
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Thinks s/he gets paid by the post
Join Date: Jan 2013
Posts: 3,405
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I find that it is often better to hack your taxes where you live or want to live rather than move for lower taxes. In California, a high tax state, Prop 13 keeps your assessed value below market and you can take that assessed value with you under some circumstances. Despite all the tax happy people that vote for bonds, parcel taxes, and fees, I'm paying around 0.5 percent of market value in total property taxes and fees on my house and a much smaller percentage on a property with a transferred 1975 base year value. Social Security is not taxable income in California. If you own rental real estate, you can set it up so your "expenses" are the same or up to $25k more than the income and pay no tax on that income in California. Be tax-aware when you consume. Buy less stuff or buy it used. All this keeps your total tax bill reasonable.
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09-13-2018, 08:16 AM
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#15
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Thinks s/he gets paid by the post
Join Date: Mar 2014
Location: Southern Cal
Posts: 4,032
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Texas maybe great, but you pay more for electricity. One of my leads from Texas and he told me he paid something like $600 a month for A/C. At the time I was paying like $50-80 a month.
California may be high but I know enough people who own more than 3 properties in retirement. Some are not rentals even. Example is one of my ex-coworkers just bought a place in Santa Barbara, not the cheapest place in California either, but she likes to remodel houses for fun. My brother just bought his third homes as a rental. Another guy who was a director from Qualcomm, bought 6 properties before he retired so he could manage them in retirement.
People don’t like to pay high tax in California but they do like California in general.
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09-13-2018, 08:54 AM
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#16
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2014
Posts: 7,002
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In NV there is no state income tax. Our home is worth 400k and property taxes are 700/year. They use the age of your home when figuring your taxes. Our house was built in 1950. Sales tax is over 8%.
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09-13-2018, 08:59 AM
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#17
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Thinks s/he gets paid by the post
Join Date: Nov 2011
Posts: 3,877
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If you are near average in terms of income, real estate, etc., it might be simpler to look at per capita spending by state. The states that spend less should take less in various taxes.
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09-13-2018, 09:04 AM
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#18
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Aug 2004
Location: Laurel, MD
Posts: 8,309
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I know a lot of folks move to PA or DE from MD to take advantage of relatively low taxes on various items eg retirement income, sales, property, and other expenses. I don’t know how much involves sales taxes that are not reported but that seems like a trivial amount.
__________________
...with no reasonable expectation for ER, I'm just here auditing the AP class.Retired 8/1/15.
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09-13-2018, 09:05 AM
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#19
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Give me a museum and I'll fill it. (Picasso) Give me a forum ...
Join Date: Jun 2016
Location: Colorado
Posts: 8,971
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Quote:
Originally Posted by USGrant1962
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Interesting. Colorado and Florida are right next to each other at 34 and 35. I never would have thought that.
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09-13-2018, 09:06 AM
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#20
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Thinks s/he gets paid by the post
Join Date: Feb 2014
Location: Syracuse
Posts: 3,501
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Quote:
Originally Posted by REWahoo
Nope. High property and sales taxes.
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And snakes and fireants...
Anyone on here from Wyoming?
I like the Tetons and Medicine Bow areas. How does Wyoming 'get ya'?
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