Looking for Gorgeous Area in Income Tax Free State

[hakuna matata]

I agree that WA state is a good choice. I live on the Kitsap Peninsula (Sequim is on the upper corner of the Peninsula). I live in a rural area between Gig Harbor and Bremerton. Seattle is about 40 minutes way via the ferry. I am sure you can find 5-20 acres here for a reasonable price, we have 5 acres for sale right now at $90k, so that might help give you a rough perspective on land values in the area.

If you want view property it will go up accordingly. The down side to this area (the Peninsula) is the dearth of any good restaurants--there are decent restaurants but for any good and fine dining you will be heading to Seattle. The plus side is if you drink beer there are tons of micro breweries here! And the area is beautiful and very accessible.

The weather down side is it rains, sort of, more mist and gray, but if you are impacted mood wise by the weather it isn't a good choice. Plus side is when summer hits, the summers here are spectacular! We enjoy it here quite a bit.

Good luck in your decision!

 

[gcgang]

+1.



An ideal location. WA has no income tax and OR has no sales tax. ).

Similar for NE WY people. Wy no income tax, Mt no sales tax. Billings Costco and other shopping areas have lots of Wy cars on weekends.


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[DUFUS]

Another thumbs up for WA. North Olympic peninsula specifically. Of course, as has been mentioned, big city Seattle is not within an hour. I just bought a house in Sequim myself and I can't leave Illinois soon enough.
Sure, there's no tax on pensions in IL, YET...
For some generally general generalizations, figure around 1%/yr (or less) in property taxes. Proportionally, that is WAY below what I'm paying now. However homes cost WAY more. D'OH! Still worth it.
If you want to peer into the future, SELLING your WA home gets expensive. ~1.5% excise tax. Of course, that doesn't compare to the income tax saved over years, especially for the OP's circumstance.
From a tax standpoint, the acreage itself needn't necessarily be costly, if timber or other exemptions apply. Of course, building a fancy home may cost you $200/sq ft or so above the cost of the land.

No tornadoes in the spring, no heat/humidity in the summer, no below zero temps nor snow in the winter.
Not sure if I'm paying more in the long run, all things considered. But if I am, the climate upgrade alone was worth it.
After all, in the long run we're all dead. (was that Keynes?)

 

[Gumby]

I wouldn't let the tax tail wag the retirement location dog. Choose a place where you will enjoy your remaining years, because if you're miserable in your new community, your low tax bill will be cold comfort.

 

[catman2020]

I agree with the southern Washington ideas. Mild weather, natural beauty, no income tax in WA and no sales tax in OR. I think it's the only place where a no income tax state borders on a no sales tax state.

BUT there is an even more attractive option if you are willing to live at least 1/2 of the year in Puerto Rico. Potential for no state and NO federal income tax and no tax on dividends or capital gains. You don't even have to do anything with your U.S. citizenship.

http://www.forbes.com/sites/robertw...tax-free-puerto-rico-stay-american-avoid-irs/



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[old woman]

Vancouver WA area is near Portland OR. WA has no income tax and OR has no sales tax so some shop in OR then owe WA use tax which is the same rate as sales tax. You might enjoy the Mt St Helens area, it has a volcano.

 

[skipro33]

You'll freeze in WY. Try SW Idaho. It's the tropics compared to E Idaho or WY.

I'd second that. My wife's family moved to Boise area and I've visited several times. BIL has 40 acres on a mountain top backed up to BLM for under $500,000 with a 3600 sq. ft. home. Commute to Boise is about 40 minutes.

Amazing views, low taxes and mostly inexpensive other costs. I'd move there if it didn't harbor my in-laws....

 

[Kimo]

You might want to take a look at Red Rock outside of Reno, NV. It is 35 minutes to downtown Reno and about 40-45 more to Tahoe. I bought 17 acres and had a house built and would have a very hard time leaving it for good....I do spend time in Hawaii but believe it or not there are times in Hawaii that I miss Red Rock...

 

[Bamaman]

The crowd here is pushing your toward Wyoming. I love to ski, but wouldn't want to deal with so much snow and winter weather. I too love Lake Tahoe, but it's too expensive to retire to, and I don't care for Nevada's deserts.

I like a place with more people and a better society than you'll find in much of Wyoming and Montana. Many citizens are service related. The nicer towns are usually ski resorts and simply unaffordable.

And healthcare is increasingly important as you get older. Many small cities just cannot handle elderly healthcare and the ailments that might hospitalize you.

My sister has a house in Banner-Elk,NC--in an equestrian neighborhood with a Jack Nicklaus Golf Course and their own 4600 foot landing strip called Elk River. The two highest ski resorts on the East Coast are there--Beech Mountain and Sugar Mountain. They absolutely adore the people in their resort--many of which move to their Florida houses for the winter. The local citizens are often real hillbillies--people of simple needs and very high character.

For mountains in the East, Asheville, North Carolina is a great mid size town. There are also a number of very luxurious golf/tennis communities in the mountains south of Asheville and north of Greenville, NC--just outside of the Smokies. The Highlands and Cashiers, North Carolina also have a number of residential resorts with a high level owners. Gary Player was south of there building a golf course, and he like it so well he moved his whole golf course architectural firm to the NW South Carolina mountains.

We have a place in the rustic North Georgia Mountains just over an hour north of Atlanta. We have the big city amenities if needed, but seldom care to go to Atlanta. Our main house is on the Tennessee River waterfront in NW Alabama. We're here for the fantastic lake with incredible houses and a very low cost of living.

There are just so many great places to live in the U.S. that would suit your needs. It's especially nice to live out in the country, but not so far out--close to cities.

 

[Fred123]

A bit sad that someone with 300K of retirement income would use income tax as the determinant of where to retire. Lighten up! You can live anywhere you want and be very comfortable.


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[eroscott]

Re: Various types of taxes
I was trying to get up in this thread for some comparison sites but the one I mentioned may be useful to you.

http://www.early-retirement.org/for...des-this-one-for-doing-comparisons-77221.html

 

[Sunset]

Thanks to all for putting WA on my radar. I had not considered it, as for some reason (possibly inheritance tax) Kiplinger does not consider it super tax friendly.

Does the WA inheritance tax (after first 2M) affect inheriting from spouse ?

 

[Ronnieboy]

I am thinking of WY when we give up the j*bs. I need something mountainous and don't mind the snow, but don't necessarily need it. I was thinking Lander, WY or Rock Springs. Just wondering if the wife is coming with me....I guess I should ask her or at least let her know of the plans.

 

[Fermion]

I wouldn't bank on WA state being a no-income tax state for much longer. There are some rumblings about establishing a tax for higher earners that I think may gain legs.

I am not sure how much that catastrophe in Seattle with the giant tunnel boring machine is going to end up costing the state (hard to imagine Seattle eating the whole cost overrun) and there are other money sinks that sales tax may not keep up with.

 

[Big_Hitter]

How is the medical care in (remote) WY?

 

[harley]

I'm sure all of you good citizens who live in no income tax states and shop in no sales tax states are duly reporting and paying the use taxes each April, so I don't think I'd let that determine where I want to live.


Also, I'm chiming in with those who say don't worry about the taxes, live where you want to. Keep in mind that you could move to Chicago from NYC and still be paying lower taxes. Anywhere you go you'll be paying less. So why worry about it?

 

[45th Birthday]

I am one of those who considers the tax situation when determining where to domicile. We recently changed from Illinois to Florida, although we still have the Illinois house and also have a very pleasant place where we spend the summers.


The fiscal situation in Illinois is a mess and will get much worse before it gets better. So, the current modest income tax will go higher. Also, at 16% the estate tax is a killer for us. I refuse to give $3+ million to Illinois instead of my heirs. Property taxes in FL are also reasonable compared to IL. The property taxes are about the same, even though the FL placee is worth 40% more than the one in IL. Sales taxes also lower in FL.

 

[Rosie]

DH and I seriously considered relocating to WA state, particularly the Sequim area. We ultimately decided to stay in Northern California, although we'll likely visit the Olympic Peninsula a lot in the coming years. Taxes were not at all a factor in our consideration of WA state, btw, we simply like the area. Now that we're relatively wealthy, we're in a position to give back, and we don't waste our time freaking out over taxes. To each their own {shrug}.

 

[Big_Hitter]

DH and I seriously considered relocating to WA state, particularly the Sequim area.

We have a rental house in PA and two five acre parcels in Agnew, WA.

We bought the property after visiting the area in the late 90s.

Originally we had planned to retire there until we landed in paradise.

PA/Sequim is hard to beat...well except for the winter...

 

[tps7742]

I have lived in Texas all my life, retired recently. True we do not have a state income tax, but the old saying from the good Texans that state "you never own your property you just lease it from the state" is there for a reason. I probably will not leave Texas due to family ties etc but as several have mentioned live where you want because life is too short. We have our share of fees & other taxes to make up for the non state income tax at times IMO.

 

[javeline86]

BUT there is an even more attractive option if you are willing to live at least 1/2 of the year in Puerto Rico. Potential for no state and NO federal income tax and no tax on dividends or capital gains. You don't even have to do anything with your U.S. citizenship.

Hate Taxes? Move To Tax-Free Puerto Rico, Stay American, Avoid IRS - Forbes

I looked into this program recently and PR may be great for a vacation, but to have to live there at least six months out of every year may be too much. Once you leave your locked down resort, the crime rate in PR is very high. Would love to hear from some people that have actually done it though as crime statistics can be misleading.

 

[Accidental Retiree]

DH and I seriously considered relocating to WA state, particularly the Sequim area. We ultimately decided to stay in California, although we'll likely visit the Olympic Peninsula a lot in the coming years. Taxes were not at all a factor in our consideration of WA state, btw, we simply like the area. }.

+1

We also considered and visited the area, but decided against it.

Like DayLate and Rosie, we think it is a beautiful area, but we know we cannot live there because of the weather. We are both solar powered.

I spent a lot of time reading another forum while looking for our next spot. The screen name of one CA transplant to that area is "thisplacesucks."

We are staying put in CA. We pay relatively little in income and property tax here, and we have no kids so are not concerned with estate taxes.

 

[daylatedollarshort]

A few lessons I learned from friends who either cashed out of a high COL / taxes area or stayed:

1. Watch for the Green Acres effect. If you are used to having highly educated urban friends and co-workers, you may not fit in well in a rural or blue collar area.

2. Consider all possible financial factors. Some of our friends that stayed after they retired came out way ahead financially after 10 years because of home appreciation.

3. If you move some place less interesting or a harsher climate, your travel budget may go up.

Taxes are a good consideration, but I'd look at factors like happiness, fitting in socio-economically and total expected net worth in 10 years or so. If you look at the research, nonmonetary factors such as having friends and being connected to the community are often bigger predictors for happiness than factors like taxes or income (after a certain point of affluence).

And for some people, levels of sunshine do matter:

http://www.huffingtonpost.com/2013/10/06/sunshine-happiness-behavior-mood_n_4014477.html

"new research implies the antidepressant benefit comes from exposure to ultraviolte rays that act on the skin to stimulate vitamin D production."

 

[haha]

A few lessons I learned from friends who either cashed out of a high COL / taxes area or stayed:

1. Watch for the Green Acres effect. If you are used to having highly educated urban friends and co-workers, you may not fit in well in a rural or blue collar area.

2. Consider all possible financial factors. Some of our friends that stayed after they retired came out way ahead financially after 10 years because of home appreciation.

3. If you move some place less interesting or a harsher climate, your travel budget may go up.

Taxes are a good consideration, but I'd look at factors like happiness, fitting in socio-economically and total expected net worth in 10 years or so. If you look at the research, nonmonetary factors such as having friends and being connected to the community are often bigger predictors for happiness than factors like taxes or income (after a certain point of affluence).

And for some people, levels of sunshine do matter:

Sunshine & Happiness Study Links Time Outdoors To Improved Mood

"new research implies the antidepressant benefit comes from exposure to ultraviolte rays that act on the skin to stimulate vitamin D production."

All of these are very good points.

Ha

 

[Rosie]

Like DayLate and Rosie, we think it is a beautiful area, but we know we cannot live there because of the weather. We are both solar powered.

Likewize. That was my biggest concern in relocating to the PA/Sequim area (even in the rain shadow), that and the relative remoteness. DH would be fine there, he's a hermit by nature, but I need a bit more sun & civilization.

That said, once we're settled in our new digs, we'll probably spend a good amt of time up there, it's waaay up on our Nice Place to Visit list (esp since it's a convenient ferry ride to Vancouver Island, which is #1 on that list). And thanks to the booming SF Bay area RE market, we'll have more set aside for travel than we originally planned.

I spent a lot of time reading another forum while looking for our next spot. The screen name of one CA transplant to that area is "thisplacesucks." ��

I didn't realize she was from CA.