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Old 02-23-2010, 12:46 AM   #21
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Regarding Oregon: Definitely problems. Add to all the above a very difficult to fund public retirement plan, AND the requirement that the state government return any overcollection of taxes instead of saving the money in a 'rainy day fund', and you have a little state with an unstable tax base and very high costs.

Its pretty frustrating. I don't look forward to paying 9% on any retirement income. Here's the way we calculate state income tax. Start from your federal income and then:
If your income range is between $0 and $3,050, your tax rate on every dollar of income earned is 5%.
If your income range is between $3,051 and $7,600, your tax rate on every dollar of income earned is 7%.
If your income range is $7,601 and over, your tax rate on every dollar of income earned is 9%.

Ouch. The southwest (NV, AZ, NM) look better every day.

Steve
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Old 02-23-2010, 01:23 AM   #22
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As far as total tax burdens go WV is about in the middle. Property taxes are half or less than what they were in MD but we didn't notice a lot of difference in much else. Gasoline is usually about ten cents less per gallon but normal groceries, clothes, etc. are somewhat less because of lower land prices but we didn't notice a huge difference.

There are a lot more dollar stores and outlets like Big Lots than we saw in MD. That is not a bad thing.

WV is one of the few states whose constitution requires a balanced budget so they are not having the woes that some others are. A looming problem is unfunded pension liabilities but they are taking step to address that issue. Slowly, but at least they're aware of it and working on making some changes. Which is more than can be said for some states.
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Old 02-23-2010, 02:20 AM   #23
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The map gives a whole new slant on "blue" states. Not to get too political, heh, heh, but there does seem to be lot of overlap. Probably unrelated
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Old 02-23-2010, 08:41 AM   #24
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In our area of Texas, $7,000 of property tax buys you 3,000 sq ft, new home, on 1.2 acres of lake front property! At age 65 if the house is paid off you can defer your taxes until you and your spouse die. Admittedly your estate would have to pay the tax or loose the home, so you have to make up your mind how much estate do you want to pass to your kids, or weather you want to spend it.

At any rate that is Zero income tax, Zero property *over 65, and a state with a budget surplus.
Isn't there an interest on that unpaid property tax, also? Something like 2% added?
Granted, it isn't bad at all...just sayin'.....it isn't a freebie.
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Old 02-23-2010, 08:42 AM   #25
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Isn't there an interest on that unpaid property tax, also? Something like 2% added?
Granted, it isn't bad at all...just sayin'.....it isn't a freebie.
It is pretty bad -- it's 8%. But someone with no heirs may not care.
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Old 02-23-2010, 10:42 AM   #26
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It is 8%, but that is 8% simple! Not Compound, so it is not as bad as you would think. It still amounts to who is going to spend your money, you or your kids.
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Old 02-23-2010, 11:10 AM   #27
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Illinois has 3 percent income tax on earned income, 6.25 percent state sales tax (1 percent on food and medical) plus whatever a county/municipality can tack on (in Cook County it was just reduced to a total of 9.25 percent, from 10.25 percent), and I paid $8K property tax last year on my 3 br, 1.5 small old house. You'd think with all these tax dollars we'd be a little lower on the top 10 list of places not to retire! Maybe the current campaigning to increase our income tax to 5 percent will do it....
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Old 02-23-2010, 11:24 AM   #28
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Just before I retired it didn't take much calculating to figure out that for me a sales tax would be way more punitive than highish (maybe) property taxes, so staying a TX resident made sense.

And later when I didn't own property for 5 years it really paid off!

Now getting back to owning real estate again, but well out of high dollar TX major urban areas.

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Old 02-23-2010, 11:46 AM   #29
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Glad to see Virginia isn't ranked so bad. Gotta wonder though, what happened to DC? Curious cause DH and I are close by.
Q: What happened to DC?

A: It is not a state so doesn't make any lists of "States whcih are ...."
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Old 02-23-2010, 11:48 AM   #30
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Live where you want to live.

You pretty much pay your dues one way or another, and even a couple thousand bucks a year savings is trumped by considerations of lifestyle, family, friends, and a million other factors which are more important.
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Old 02-23-2010, 11:54 AM   #31
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I've got to move! I'm salivating over the "high" TX property taxes.

We struggle a lot with the decision because, though the finances make sense, the emotional ties are difficult to break. We are also worried about making new friends since we will not be working and don't have children.
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Old 02-23-2010, 11:57 AM   #32
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It IS something to think about if you are looking for a new home for the next 15 years for retirement. I'd hate to move to a State that starts cutting services and upping my taxes because it was broke.
IIRC, you've been struggling with this decision for a long time. Have you decided on a place or have a short-list?
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Old 02-23-2010, 11:59 AM   #33
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We struggle a lot with the decision because, though the finances make sense, the emotional ties are difficult to break. We are also worried about making new friends since we will not be working and don't have children.
Yeah, some of that depends on the activities and the sort of things you want to do. We knew no one when we moved to a small town. But we became active in the church here and my wife has done a lot of community volunteer work with various charitable and civic organizations. If you're not into doing that sort of stuff it can be a very isolating experience if you're concerned about meeting new friends in your new home town.
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Old 02-23-2010, 12:07 PM   #34
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Yeah, some of that depends on the activities and the sort of things you want to do. We knew no one when we moved to a small town. But we became active in the church here and my wife has done a lot of community volunteer work with various charitable and civic organizations. If you're not into doing that sort of stuff it can be a very isolating experience if you're concerned about meeting new friends in your new home town.
How to make friends in a small town in Texas !

Hi Mr Johnson is Sally home ?

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Old 02-23-2010, 12:30 PM   #35
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Live where you want to live.

You pretty much pay your dues one way or another, and even a couple thousand bucks a year savings is trumped by considerations of lifestyle, family, friends, and a million other factors which are more important.
This would work for some, but it seems to me that sometimes I hear people saying on the forum, "I had to put off the trip to Italy that I had planned for this year, due to the economy", "I don't see how anybody can live on less than $40,000/year, and look at my (pretty meager but $50K) budget!" or other tales of economic constraints. Sometimes living the lifestyle we want, is not always possible in an expensive area and living in an area that costs less can make all the difference in giving the retiree enough extra spending money to realize his/her plans and dreams.

Everyone has their own set of internal criteria for selecting an ER location, whether they admit it or not. Some may choose proximity to family and friends even if this means living in a location they don't especially like, and there is nothing wrong with that. I can think of several examples of that from the forum. Others may prefer the vagabond lifestyle, and friends and family cannot tie them down. There are examples of that sort of lifestyle too.

I guess my best comment here is that each of us who is considering moving should do some intensive soul-searching, and look deep inside to determine what really is important to us as individuals, before we select an ER location. What is right for one, is not right for all.

As an extreme example, if I had to live in Manhattan I might as well hang it up as far as retirement goes! I couldn't even afford a tiny studio apartment there, much less ownership of a home large enough to house me and my (beloved but cheap) sculptures and paintings. More realistically, the same goes for me and Hawaii, where my family is from. I love the lifestyle there, and grew up there, but would rather live on the mainland with an ample budget which can provide me with a lot of lifestyle perks here, than to live there on a bare bones budget.
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Old 02-23-2010, 12:35 PM   #36
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Clearly areas like Manhattan and San Francisco cost much much more than other cities. And clearly rural areas in the Midwest and southern states cost less than the coasts. Therefore depending on your budget you may choose to live in the lower cost areas so that you'll have more for other things. Not everyone can live the life that they would really like to.

So I too disagree. You can live where you want only if that fits your budget.
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Old 02-23-2010, 01:16 PM   #37
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It is 8%, but that is 8% simple! Not Compound, so it is not as bad as you would think. It still amounts to who is going to spend your money, you or your kids.
Can you get this deal on a fully mortgaged home? If you convey other assets to your heirs with direct beneficiary designations, maybe the lone Star State could be left with only what they could get out of the house, the security for the loan?

Ha
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Old 02-23-2010, 01:17 PM   #38
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Here's our house, 22 miles outside of Houston in a river-front subdivision.



2600 sq ft, with a pool. Total property tax bill for 2009, (county, school, etc.) $2800. I don't consider that "outrageous."

(Best part...NO mortgage. Yeah, baby. )
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Old 02-23-2010, 01:22 PM   #39
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SarahW:

Just for fun what's the approximate value of the home ?
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Old 02-23-2010, 01:24 PM   #40
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haha,
I don't defer my taxes, so I really don't have an answer. However, my assumption is you have to have your house paid off. I can't imagine that a bank would allow you to run up a first lien position i.e. tax that would be ahead of their position. As far as direct beneficiary that would be one for a Texas lawyer, witch I am not. A guess is the Tax authority has a first place lien on the property, and then is in line with the rest of the estate creditors for anything not covered.
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