Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Which States Give Retirees the Best Deal?
Old 06-21-2008, 09:35 AM   #1
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,968
Which States Give Retirees the Best Deal?

Interesting summary on complete tax burden, thought others might find it of interest:

Which states give retirees the best deal? - MSN Money
__________________

__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 06-21-2008, 09:48 AM   #2
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,078
I can't speak for any other state, but the information for TX property tax is crappola! The example shows a tax of $2,332 on a house valued at $152,000, a tax rate of 1.5%. No way.

I live in an unincorporated area with no city property tax (only county, emergency services, groundwater, road, and school taxes ) and my tax rate is more that 1/3 higher than the example shown. You add in city property tax and you are looking at something in the neighborhood of 2.7%, or something in the neighborhood of $4,100.

Really makes me question the overall accuracy of this comparison....
__________________

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 06-21-2008, 09:49 AM   #3
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
These are always interesting but it's always most important to know your own situation.

Texas, for example, can be a retirement tax haven or a retirement tax hell, depending on your circumstances. If you have a high income, a modest home and an LBYM lifestyle that doesn't buy a lot of taxable "stuff," it's one of the better retirement states from a tax point of view (if you can stand the summers).

On the other hand, if you are rather spendy and live in a large, higher-priced home, the sales taxes and property taxes are a killer, more than offsetting the lack of a state income tax.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 06-21-2008, 09:51 AM   #4
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by REWahoo View Post
I can't speak for any other state, but the information for TX property tax is crappola! The example shows a tax of $2,332 on a house valued at $152,000, a tax rate of 1.5%. No way.
They are probably assuming the retirees are over 65 and thus get additional senior exemptions. I don't know how much those are, but I know I bought our current house in 2006 from someone who had both a senior and a disabled exemption, and the property tax rate wound up being about 0.7% of appraised value.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 06-21-2008, 09:55 AM   #5
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Minnehaha
Posts: 2,375
thanks for the link - I see I'm near the high end ...the trick is to find a happy medium...I do get a lot of services for the money...all those roads to plow...the property tax rate is about right...all though I doubt the medium price home in St. Paul is still $139,000...maybe it will be again with the current home implosion
__________________
MinnesotaEats - www.goodfoodmsp.com
Danny is offline   Reply With Quote
Old 06-21-2008, 09:57 AM   #6
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Midpack's Avatar
 
Join Date: Jan 2008
Location: Chicagoland
Posts: 11,968
Quote:
Originally Posted by REWahoo View Post
I can't speak for any other state, but the information for TX property tax is crappola! The example shows a tax of $2,332 on a house valued at $152,000, a tax rate of 1.5%. No way.

I live in an unincorporated area with no city property tax (only county, emergency services, groundwater, road, and school taxes ) and my tax rate is more that 1/3 higher than the example shown. You add in city property tax and you are looking at something in the neighborhood of 2.7%, or something in the neighborhood of $4,100.

Really makes me question the overall accuracy of this comparison....
Looks like it depends on where you live. Not that I knew anything about Texas, but according to this, property taxes near Austin are both above and below 1.5% Travis County Tax Office - Collecting property taxes, registering voters and motor vehicles..

Guess I'd conclude for property taxes at least, you'd better find out what they'd be for the specific community you're living or thinking about living in. Property taxes varies across a state and can even vary dramatically within a city (I think we're all aware of that). State income taxes and sales taxes should be representative though, but I only posted it as a FWIW...
__________________
No one agrees with other people's opinions; they merely agree with their own opinions -- expressed by somebody else. Sydney Tremayne
Retired Jun 2011 at age 57

Target AA: 60% equity funds / 35% bond funds / 5% cash
Target WR: Approx 2.5% Approx 20% SI (secure income, SS only)
Midpack is offline   Reply With Quote
Old 06-21-2008, 10:07 AM   #7
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by Midpack View Post
Looks like it depends on where you live. Not that I knew anything about Texas, but according to this property taxes near Austin are above and below 1.5% Travis County Tax Office - Collecting property taxes, registering voters and motor vehicles..

Guess I'd conclude for property taxes at least, you'd better find out what they'd be for the community you're living or thinking about living in. State income taxes and sales taxes should be representative though, but I only posted it as a FWIW...
For what it's worth, here's my 2008 appraisal notice (listing an $89,960 appraised value before I got it knocked down by over $13K):

School tax -- $785 (1.19% of appraised value minus homestead exemption), such a value for someone with no kids!
City tax -- $288 (0.40% minus homestead)
County tax -- $186 (0.26% minus homestead)
Road/bridge tax -- $33 (0.046% minus homestead)

Total -- $1292 on an appraised $89,960 -- 1.44%.

When we were in Houston we paid over $4600 on a $195,000 property, nearly 2.4%.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 06-21-2008, 10:15 AM   #8
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,078
Quote:
Originally Posted by ziggy29 View Post
They are probably assuming the retirees are over 65 and thus get additional senior exemptions. I don't know how much those are, but I know I bought our current house in 2006 from someone who had both a senior and a disabled exemption, and the property tax rate wound up being about 0.7% of appraised value.
Looking at the TX property tax exemptions for over 65 and disabled, I don't see how the stated exemptions could possibly add up to enough to bring a typical in-city property tax rate down to 1.5%, much less to 0.7%. Not saying it didn't/can't happen, but the numbers don't appear to add up.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 06-21-2008, 10:20 AM   #9
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,078
Quote:
Originally Posted by Midpack View Post
Looks like it depends on where you live. Not that I knew anything about Texas, but according to this, property taxes near Austin are both above and below 1.5% Travis County Tax Office - Collecting property taxes, registering voters and motor vehicles..
I think you are looking at the individual tax rates for the many different taxing entities in the Austin area. I'm speaking of the total tax rates which can be seen in the right column of this chart: Property Tax | The Greater Austin Chamber of Commerce :: Austin, Texas

They show Austin area tax rates vary from a low of 2.1% to a high of 2.8%.
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 06-21-2008, 10:23 AM   #10
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Minnehaha
Posts: 2,375
Austin - The Human Capital :confused:
__________________
MinnesotaEats - www.goodfoodmsp.com
Danny is offline   Reply With Quote
Old 06-21-2008, 10:24 AM   #11
Moderator
ziggy29's Avatar
 
Join Date: Oct 2005
Location: Texas
Posts: 15,612
Quote:
Originally Posted by Danny View Post
Austin - The Human Capital :confused:
We call it the "People's Republic" 'round these parts.
__________________
"Hey, for every ten dollars, that's another hour that I have to be in the work place. That's an hour of my life. And my life is a very finite thing. I have only 'x' number of hours left before I'm dead. So how do I want to use these hours of my life? Do I want to use them just spending it on more crap and more stuff, or do I want to start getting a handle on it and using my life more intelligently?" -- Joe Dominguez (1938 - 1997)

RIP to Reemy, my avatar dog (2003 - 9/16/2017)
ziggy29 is offline   Reply With Quote
Old 06-21-2008, 10:26 AM   #12
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,078
Quote:
Originally Posted by ziggy29 View Post
Total -- $1292 on an appraised $89,960 -- 1.44%.
For comparison (with homestead exemption):

Total -- $4,580 on an appraised $234,421 -- 1.95%.

...and mine includes NO city taxes!
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 06-21-2008, 10:27 AM   #13
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Minnehaha
Posts: 2,375
maybe they meant Humid and the printer was dylectric...couldn't read
__________________
MinnesotaEats - www.goodfoodmsp.com
Danny is offline   Reply With Quote
Old 06-21-2008, 11:57 AM   #14
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Dawg52's Avatar
 
Join Date: Feb 2005
Location: Central MS/Orange Beach, AL
Posts: 7,434
Quote:
Originally Posted by REWahoo View Post
I can't speak for any other state, but the information for TX property tax is crappola! The example shows a tax of $2,332 on a house valued at $152,000, a tax rate of 1.5%. No way.

I live in an unincorporated area with no city property tax (only county, emergency services, groundwater, road, and school taxes ) and my tax rate is more that 1/3 higher than the example shown. You add in city property tax and you are looking at something in the neighborhood of 2.7%, or something in the neighborhood of $4,100.

Really makes me question the overall accuracy of this comparison....
Yeah, but the tax rate on your baby is a little higher......

__________________
Retired 3/31/2007@52
Full time wuss.......
Dawg52 is offline   Reply With Quote
Old 06-21-2008, 12:12 PM   #15
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,078
Quote:
Originally Posted by Dawg52 View Post
Yeah, but the tax rate on your baby is a little higher......
Now I know why those guys at the county appraisal office tried to jack up my appraised value so much.

Reality is a little more humbling:

__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 06-21-2008, 01:06 PM   #16
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 3,624
RW! Glad to see yall upgraded from the double wide.
__________________
Rustic23 is offline   Reply With Quote
Old 06-21-2008, 01:53 PM   #17
Give me a museum and I'll fill it. (Picasso) Give me a forum ...
REWahoo's Avatar
 
Join Date: Jun 2002
Location: Texas Hill Country
Posts: 42,078
Quote:
Originally Posted by Rustic23 View Post
RW! Glad to see yall upgraded from the double wide.
Yep. We priced a set of roll bars for it and it wasn't that much more to buy this place. Took me a while to save up enough to build the carport. And if the market will ever turn around I'm planning on installing a compressor in that empty AC housing, too!
__________________
Numbers is hard

When I hit 70, it hit back

Retired in 2005 at age 58, no pension
REWahoo is offline   Reply With Quote
Old 06-21-2008, 02:25 PM   #18
Thinks s/he gets paid by the post
 
Join Date: Jul 2005
Location: Minnehaha
Posts: 2,375
Quote:
Originally Posted by REWahoo View Post
Yep. We priced a set of roll bars for it and it wasn't that much more to buy this place. Took me a while to save up enough to build the carport. And if the market will ever turn around I'm planning on installing a compressor in that empty AC housing, too!
do you have indoor plumbing?
__________________
MinnesotaEats - www.goodfoodmsp.com
Danny is offline   Reply With Quote
Old 06-21-2008, 02:34 PM   #19
Thinks s/he gets paid by the post
lazygood4nothinbum's Avatar
 
Join Date: Feb 2006
Posts: 3,895
kiplinger:
Quote:
**Florida has no income tax. The $160 figure includes an intangibles tax.
florida department of revenue:
Quote:
Effective January 1, 2007, Chapter Law 2006-312, L.O F., repeals the annual tax on intangible personal property such as stocks, bonds, mutual funds, money market funds, and unsecured notes. Under this law, taxpayers owning these types of property will not be required to file an intangible personal property tax return for 2007 or subsequent years. This includes anyone filing an individual/joint return (DR 601I) or corporate return (DR 601C) in past years.

The repeal did not include:
  • The nonrecurring tax on a note, bond, or other obligation for payment of money that is secured by a mortgage deed or other lien on real property. Taxpayers who are lending money secured by a mortgage on Florida real property must still pay the nonrecurring intangible tax. These payments are generally made to the Clerk of Court in the county where the instrument is recorded.
  • The recurring tax on the lease of real property owned by a government and leased to a non-governmental entity when rental payments are due. Taxpayers that lease property from a governmental entity must still file and pay the governmental leasehold intangible tax annually, if the amount of tax owed before discount is $60 or more.
__________________
"off with their heads"~~dr. joseph-ignace guillotin

"life should begin with age and its privileges and accumulations, and end with youth and its capacity to splendidly enjoy such advantages."~~mark twain - letter to edward kimmitt 1901
lazygood4nothinbum is offline   Reply With Quote
Old 06-21-2008, 04:32 PM   #20
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
RonBoyd's Avatar
 
Join Date: Dec 2007
Location: Denver, Colorado
Posts: 5,280
Colorado (for each individual):

The first $20,000 of pension or annuity income is exempt from tax for retired individuals aged 55 to 64, and for individuals receiving the pension as the result of the death of the individual who earned the pension. The first $24,000 of pension or annuity is exempt from tax for retired individuals aged 65 and over. For further information, see FYI Income 25, "Pension/Annuity Subtraction."

QUALIFYING INCOME
To qualify for the subtraction, a payment
must be:
pension or annuity income that is not
considered a premature distribution,
and
reported on the federal return as
taxable IRA distributions, pension
and annuities, or social security
benefits (lines 15b, 16b, or 20b of 2007
federal form 1040, lines 11b, 12b, or
14b of 2007 federal form 1040A), or
reported as a lump sum distribution
on line 3 of Colorado Form 104.
__________________

__________________
RonBoyd is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
States with no income tax renferme Life after FIRE 71 03-19-2007 04:32 PM
class in the united states Martha FIRE and Money 96 05-25-2005 04:04 PM
Anyone live in two states? farmerEd Other topics 19 04-26-2005 06:11 AM
Cheap computer deal through 8/15 - new deal! cute fuzzy bunny Other topics 55 11-24-2004 11:04 PM
Most & Least Corrupt States G_Mack Other topics 6 09-16-2004 12:49 PM

 

 
All times are GMT -6. The time now is 07:37 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.