KingOfTheCheapos
Recycles dryer sheets
- Joined
- May 17, 2021
- Messages
- 85
interesting thoughts on the best state to work in vs retire in.
But I think the best state to work in, is the one that gives you the best job? That's why CA is so popular, high tax state but lots of great opportunities and in some cases (i.e. High Tech) unique opportunities.
But I think the best state to work in, is the one that gives you the best job? That's why CA is so popular, high tax state but lots of great opportunities and in some cases (i.e. High Tech) unique opportunities.
Those rates look about right to me. My town is pretty good being under 1.8%.
I think the real benefit tax wise for NH is during your working years, not the retirement years.
We have lived here for 33 years now and grew up in MA.
As an example. Couple working, doing pretty good and has an income of $200k/year.
MA: income tax(5%) 10,000, spend 20k on things that are sales taxable(6.25%) = 1250 and a 400k home at .8% =3200
total tax burden=$14700
NH income tax =0, sales tax =0, property tax at 2.3%=$9200
advantage nh by $5500/yr
Now retired at 60, manage your income to $50k/yr and buying taxable items drops to $5000
MA: 50kx.05 +5k x.0625 +3200 re taxes=6012.5
NH: 50k x 0 +5k x0 +9200 =$9200
Advantage MA by $3188/yr
So if you are going purely by the numbers you would actually be better off to live and work in NH and retire to MA than the other way around as people seem to think they should do to escape the "Taxachusetts" dilemma.
I also realize this is but one of infinite scenarios and the numbers could possibly work out very differently depending on which town one lives in either state or the household income etc.
Just wanted to pint this out and as someone said earlier "don't let the tax tail wag the dog" or something like that.
We love where we live and have no plans to leave for any potential total tax savings which would be minimal in the grand scheme of our finances and overall happiness.