state tax on $60k income (MFJ)

[Koolau]

With $10 million just setup an irrevocable trust, domiciled out-of-state.

Cost to both setup & administer would be significantly less than $450k.

IDK. The kids had a trust (set up by their grandparents) until they turned 21. The company that held the trust charged (wait for it) 4.5% to administer it - every year! In theory, it was "invested" to grow, but the 4.5% essentially ate up any growth - and more. Total rip off as far as I could see. I called them every 3 months and badgered them to change the rates they were charging. They always promised they would but they never did. I had no leverage over them. The grandparents left $150K total and I think (between the kids) they netted a total just under $150K after the last one got their share (total time - 12 years first to last kid.)

My impression of professionally managed trusts are that they are a great way to get rid of extra money you have to pass along. The management gets rich but no one else. As always, YMMV.

 

[BeachOrCity]

DC follows federal std deduction. Dont know if your income was agi or ti
DC charges 1/2 property taxes for seniors.

DE exempts 12.5k of pension income.

These calculators are oversimplified.

 

[t49eng]

Results not even close for PA

In PA, all retirement income (1099-R) and SS is tax free. Even if the assumed $60K was all taxable (earned income, interest, dividends, cap gains, etc.), at the fixed tax rate of 3.07%, the tax would be $1842.

 

[HI Bill]

HI $3024

Hawaii allows a lot of deductions. In my case, for 2023, I had about $39K in deductions and exemptions, which means if I had a hypothetical $60K income, I'd only be taxed on $21K at 6.4%, which would be about $1344.

 

[jollystomper]

For MD, depends on the nature of the income. For example, there is a pension exclusion available to people over 65 and below 65 for a subset of cases (e.g. military, law enforcement ....).

Maryland also gives you a direct credit of $1,750 for a couple aged 65 and over ($1,000 if only one of the couple is 65 or over).

Our Federal AGI is more than twice 60K, and our state and local tax will be hundreds less than what the OP indicated for Maryland. If we chose to itemize on our federal return, it would be even less.

 

[drdb]

Not good considering hawaii is 0% for pensions state/fed/military and that creates only SS. My parents make around $150k retired in hawaii and they pay less than $1500.

The calculator doesn't consider retirement income. CA i believe also doesn't tax retirees pensions. And CA has prop 13 which makes living there as a retiree very attractive.

CA taxes pensions and IRA/401K withdrawals as well as capital gains as ordinary income. However, it does not tax Social Security benefits.

 

[mebden]

Me neither. Over the course of my life I have lived in 14 different states (and spent at least a night in 32 more). I deliberately chose to come back to live in Connecticut simply because it's the one I liked the best. Taxes had nothing to do with it.

Well, I'm glad you like Connecticut Gumby and Taxes had nothing to do with your choice of where to live. I know when I finally retire, I will move to a tax friendly state just because every state I lived in and worked in taxed the crap out of me and anytime I cannot pay wasteless money to a State that doesn't spend the money correctly I'm outta there. Plus, I'll take the warmth over the cold any day LOL

 

[isisdave]

The six states that impose an inheritance tax are:

Iowa
Kentucky
Maryland
Nebraska
New Jersey
Pennsylvania

In Kentucky, the inheritance tax exempts close relatives (spouse, kids, parents, grandparents, grandkids, siblings) or bequests to charities, but is 4-16% on others.

For income tax, Kentucky exempts SS and the first $31,100 of pension or IRA income -- that's per person even if MFJ. Then the flat rate is 4.5% with few exemptions.

Indiana, on the other hand, looks about right in the table if the $60k is AGI and doesn't include SS. The flat rate for 2023 is 3.15%, and a tad lower this year. Exemptions for MFJ would be $2k, $1 more each if over 65. There's an exemption of up to $3k if you rent your home and are below certain income levels too.

Both states say they're trying to eliminate personal income tax. We'll see about that!

We pay more tax to Indiana than we did to California, which astonishes our friends there.

 

[2retireearly]

Not sure what this income is from, but Virginia has no tax of Social Security.

 

[carty1]

State Taxes

Tennessee should be added to your 0 list.

+1. Maybe Wyoming also(?)

 

[Perryinva]

@ out-to-lunch FYI: in the 2nd example of 66SS & 60P, for Virginia, if both are 65 or older on Jan1, MFJ, there is an additional $25600 deductions so the tax drops to about $1250, considerably better. Leaves very little room for Roth conversions before hitting the $75k income limit. Of course, if you have substantial tIRAs, then up to $24k of that deduction goes away, depending how far over $75k you go, once RMDs hit. At $95k pension including IRA, the entire $24k goes away. It was a factor in my collecting SS at 66 vs 70, as that meant almost $16k less in state tax over 4 years to 70, by eliminating any tIRA withdrawals.

 

[Perryinva]

Mass has a flat income tax of 5%, which seems a bit unfair to me for low wage earners.

We also have a 4% surtax on income over $1MM.

The worst one seems to be an estate tax on over $2MM which, is not that high a threshold for homeowners, considering that most homes now are in the $800k-$900k range. It is 7% and gradually increases to 16%, capped out at $11MM. It had been $1MM but was changed last year and there is also a $99k credit.

But it's all worth it because the weather is always nice, the people are super friendly and the traffic is easy to handle.

MWAHAHAHA. You have to have lived in Mass to get the sarcasm at the end. I see others got it too. But I’ve lived ina lot worse states, by far.

 

[Koolau]

Hawaii allows a lot of deductions. In my case, for 2023, I had about $39K in deductions and exemptions, which means if I had a hypothetical $60K income, I'd only be taxed on $21K at 6.4%, which would be about $1344.

Hawaii loves its Kupuna. Much of my income is tax exempt. Then there are the RE taxes which are lowest in the nation (and even lower for Kupuna.) I was very pleasantly surprised. YMMV


Now if I just didn't have to pay that 0.5% GET tax for the Rail! My life would be complete.