Join Early Retirement Today
Reply
 
Thread Tools Display Modes
Old 02-22-2010, 11:46 PM   #21
Recycles dryer sheets
 
Join Date: Nov 2009
Posts: 67
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
stevenst 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 02-23-2010, 12:23 AM   #22
Moderator
Walt34's Avatar
 
Join Date: Dec 2007
Location: Eastern WV Panhandle
Posts: 25,299
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.
__________________
When I was a kid I wanted to be older. This is not what I expected.
Walt34 is offline   Reply With Quote
Old 02-23-2010, 01:20 AM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
Koolau's Avatar
 
Join Date: Jul 2008
Location: Leeward Oahu
Posts: 17,794
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
__________________
Ko'olau's Law -

Anything which can be used can be misused. Anything which can be misused will be.
Koolau is offline   Reply With Quote
Old 02-23-2010, 07:41 AM   #24
Thinks s/he gets paid by the post
 
Join Date: Mar 2007
Posts: 3,323
Quote:
Originally Posted by Rustic23 View Post
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.
__________________
Please consider adopting a rescue animal. So very many need a furr-ever home and someone to love them! And if we all spay/neuter our pets there won't be an overpopulation to put to death.
Orchidflower is offline   Reply With Quote
Old 02-23-2010, 07:42 AM   #25
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ziggy29's Avatar
 
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
Quote:
Originally Posted by Orchidflower View Post
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.
__________________
"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)
ziggy29 is offline   Reply With Quote
Old 02-23-2010, 09:42 AM   #26
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 4,203
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.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
Rustic23 is offline   Reply With Quote
Old 02-23-2010, 10:10 AM   #27
Moderator Emeritus
Bestwifeever's Avatar
 
Join Date: Sep 2007
Posts: 17,773
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....
__________________
“Would you like an adventure now, or would you like to have your tea first?” J.M. Barrie, Peter Pan
Bestwifeever is offline   Reply With Quote
Old 02-23-2010, 10:24 AM   #28
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 38,007
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.

Audrey
audreyh1 is online now   Reply With Quote
Old 02-23-2010, 10:46 AM   #29
Recycles dryer sheets
 
Join Date: Dec 2009
Posts: 215
Quote:
Originally Posted by Purron View Post
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 ...."
chemist is offline   Reply With Quote
Old 02-23-2010, 10:48 AM   #30
Moderator Emeritus
Rich_by_the_Bay's Avatar
 
Join Date: Feb 2006
Location: San Francisco
Posts: 8,827
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.
__________________
Rich
San Francisco Area
ESR'd March 2010. FIRE'd January 2011.

As if you didn't know..If the above message contains medical content, it's NOT intended as advice, and may not be accurate, applicable or sufficient. Don't rely on it for any purpose. Consult your own doctor for all medical advice.
Rich_by_the_Bay is offline   Reply With Quote
Old 02-23-2010, 10:54 AM   #31
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 3,504
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.
walkinwood is online now   Reply With Quote
Old 02-23-2010, 10:57 AM   #32
Thinks s/he gets paid by the post
walkinwood's Avatar
 
Join Date: Jul 2006
Location: Denver
Posts: 3,504
Quote:
Originally Posted by Orchidflower View Post
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?
walkinwood is online now   Reply With Quote
Old 02-23-2010, 10:59 AM   #33
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
ziggy29's Avatar
 
Join Date: Oct 2005
Location: North Oregon Coast
Posts: 16,483
Quote:
Originally Posted by walkinwood View Post
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.
__________________
"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)
ziggy29 is offline   Reply With Quote
Old 02-23-2010, 11:07 AM   #34
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,391
Quote:
Originally Posted by ziggy29 View Post
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 ?

MasterBlaster is offline   Reply With Quote
Old 02-23-2010, 11:30 AM   #35
Moderator Emeritus
W2R's Avatar
 
Join Date: Jan 2007
Location: New Orleans
Posts: 47,473
Quote:
Originally Posted by Rich_in_Tampa View Post
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.
__________________
Already we are boldly launched upon the deep; but soon we shall be lost in its unshored, harbourless immensities. - - H. Melville, 1851.

Happily retired since 2009, at age 61. Best years of my life by far!
W2R is online now   Reply With Quote
Old 02-23-2010, 11:35 AM   #36
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,391
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.
MasterBlaster is offline   Reply With Quote
Old 02-23-2010, 12:16 PM   #37
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,983
Quote:
Originally Posted by Rustic23 View Post
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
__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is offline   Reply With Quote
Old 02-23-2010, 12:17 PM   #38
Full time employment: Posting here.
 
Join Date: Jul 2008
Posts: 619
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. )
SarahW is offline   Reply With Quote
Old 02-23-2010, 12:22 PM   #39
Thinks s/he gets paid by the post
MasterBlaster's Avatar
 
Join Date: Jun 2005
Posts: 4,391
SarahW:

Just for fun what's the approximate value of the home ?
MasterBlaster is offline   Reply With Quote
Old 02-23-2010, 12:24 PM   #40
Thinks s/he gets paid by the post
Rustic23's Avatar
 
Join Date: Dec 2005
Location: Lake Livingston, Tx
Posts: 4,203
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.
__________________
If it is after 5:00 when I post I reserve the right to disavow anything I posted.
Rustic23 is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools
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
Happiest States............ Dawg52 Other topics 49 03-08-2010 06:56 AM
Diversity of areas within states Moemg Other topics 38 08-20-2009 08:25 PM
South Atlantic states califdreamer Life after FIRE 66 11-02-2006 09:33 AM
Anyone live in two states? farmerEd Other topics 19 04-26-2005 05:11 AM

» Quick Links

 
All times are GMT -6. The time now is 11:44 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2024, vBulletin Solutions, Inc.