which state to retire

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Random Poster
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Re: which state to retire

Post by Random Poster »

VanGar+Goyle wrote: Fri Jun 11, 2021 4:47 am
1) mild weather 2) low crime rate 3) low/moderate cost of living 4) liberal organic living with focus on wellness 5) good health care 6) tax friendly
The requires overlaying a political map with a climate map. Other maps including the tax map are more complex.

If you have to pick a state, then you may want to winter in Florida, and summer in Alaska, and
keep residency in the middle, perhaps your Colorado. This is not the classic snow-birding travel, but can get you what you want.

If you go by county, then you may go even more extreme: to winter in South Florida, and summer in West Baked Alaska,
falling and springing in small parts of lower Rockies: Colorado, Wyoming.
Most states have at least small blue enclaves, typically to oceanside or South.
Colorado is particularly picky, see Fort Collins and Pueblo, but you would want to avoid Colorado Springs.

To get this perfect, travel across the country several times, over several seasons, which can broaden your mind and expectations.
Also check the local news, either broadcast or paper, to get a feeling for the communities.
Pueblo has high crime, no?

Fort Collins is just sprawl and the traffic on I-25 is a mess. Makes getting into Denver a migraine, at least for me.

Might want to look a bit father south down I-25 and consider a few places in New Mexico, although some parts have high crime and higher cost of living areas.
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anon_investor
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Re: which state to retire

Post by anon_investor »

Marseille07 wrote: Fri Jun 11, 2021 10:44 pm
anon_investor wrote: Fri Jun 11, 2021 10:28 pm I don't know WA all that well, but I almost relocated to the Seattle area for a job a few years ago and looked into taxes/housing costs a bit, which were surprisingly high (assuming the tech bloat has made the place expensive). I think the sales tax was around 10%, higher than any place I have lived, and the home prices were kind of nuts.

I don't know TN at all. The only place I have been to in Texas is Houston, and that weather was terrible (wedding in the summer...). Is the Dallas area affordable at all?
Washington State's property tax doesn't seem high at 0.93%. RE prices are high, but that's the thing about the property tax; low rate, high price and vice versa. It's not the only factor but it's a factor.

Dallas area seems affordable, at least if you go up north a bit to the Frisco / McKinney area. I see properties running around 300~400K.

I have been to neither Dallas nor Houston but I hear Houston is very humid. Dallas little less so I believe.
Houston is horrible in the summer. I spent a few summers there as a kid. I don't know Dallas, but I have buddy there that lives in a fancy un-BH house, so definitely not $300-400k range where he is.

I doubt my spouse would want to do it, but I think it would make sense to retire early and move to a no income tax state to do Roth conversions, then have the flexability to move anywhere after that to not worry about income taxes all that much.
Marseille07
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Re: which state to retire

Post by Marseille07 »

anon_investor wrote: Fri Jun 11, 2021 11:06 pm Houston is horrible in the summer. I spent a few summers there as a kid. I don't know Dallas, but I have buddy there that lives in a fancy un-BH house, so definitely not $300-400k range where he is.

I doubt my spouse would want to do it, but I think it would make sense to retire early and move to a no income tax state to do Roth conversions, then have the flexability to move anywhere after that to not worry about income taxes all that much.
Yeah, it's really difficult to pick a place with good weather. I'm sure some spots of Nevada are also good (Reno is kind of cold and Las Vegas is hot), but there aren't big cities in the middle of the state. I also hear El Paso's climate is great, but if you want to retire there is another question.

Tennessee would be a good option though, I believe Memphis and Nashville are both pretty good weather-wise.
Financologist
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Re: which state to retire

Post by Financologist »

Johnny_Excitement wrote: Wed Jun 09, 2021 10:31 pm I'm not sure you'd like Colorado winters if you don't like winters in NJ. Based on your preferences, Oregon and Washington state are worth looking into.
Colorado winters are mild in Denver. Denver is a wonderful place and almost anyone coming from the tri state area will prefer its temperate climate. This is different from the mountain towns which get tons of snow and colder weather. Denver on the other hand is dry and warm in the summers.. sometimes hot but overall fabulous. Spring and autumn are gorgeous and outdoor tennis is common in winter as sun shines often and temps are frequently comfortable during the day (but cold over night). You cannot lose retiring to Denver. By the way, if you see a cold front coming to Denver book a $99 round trip to arizona for a few days.. easy.
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Financologist
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Re: which state to retire

Post by Financologist »

Marseille07 wrote: Thu Jun 10, 2021 10:54 am I'm surprised Colorado is suggested as a place to retire to. While Denver is one of my favorite places to visit during spring / summer, they seem to hit a subfreezing temperature 5~6 months out of a year. Much colder than PNW, and even PNW is cold for me.
Cold over night.. many mild days though in winter. Overall.. winter is on the mild and sunny side of cold in denver. For anyone accustomed to jersey gray cold biting winters.. Denver will be a marked improvement
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StealthRabbit
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Re: which state to retire

Post by StealthRabbit »

30 yrs Colorado - broad / fair (?) tax / Retiree homestead reduction for property taxes (near Ft Collins, very Rural) left due to very huge property tax increases on ranch land that county taxed as 'developable' :x , / inflow of equity from CA and TX was displacing lifelong residents in the 1970's

30 yrs Washington State / no income tax (southern border, 20 min to PDX (no sales tax) but very rural :D ), great for earning yrs, but property tax went from $880 / yr to $14,800/ yr on same home (no improvements). ~$43/day in property taxes alone is rough with no wage income for last 17 yrs, had to buy (6) rental props in TX to cash flow WA property tax (and TX property taxes are quite extreme, but ROE is much higher than left coast rental homes).

Retirement will likely be overseas LT (to afford HC and living and travel)

While in USA, will domicile and keep investment props in income tax free states, Living Trust in a low estate tax state.
Since I travel a lot...
likely will use SD as an income tax free domicile (one overnight / lifetime required)
MT LLC to own taxable / licensed vehicles and tangible assets (boats, RV, Airplanes, Bulldozers, Semi-trucks, collector cars...) Strict rules apply (heed them)

If single... I will retreat to AK as a tax free domicile.

WY would work if single.

TN we have explored, but never choose to live east of Missouri River during humidity / heat. (no AC in cars or homes, never intend to need it)

Colorado is superb for biking, front range is smoggy and lots of traffic, and miles of sprawl / privacy fenced 'clone' homes with very serious water and resource limitations.

WA is great for variety of climates, water access (and yr round snow skiiing) and near British Columbia +++ for recreation. Winter rains? I flee via many air flights, often to CA, AZ, NV, TX and international. At one time Spirit ran $19.90 direct flights to San Diego. Down at 5AM and return to PDX at midnight. POOF, I was GONE!!! I keep homes in (3) other USA regions and will be adding international homes in different climates. I fly to wherever the weather is best. My homes are VERY cheap (~$150k or less) and each are view / rural / rented FT and have a spare cabin for me and a shop with my cars, bikes, bulldozers. I average 12%+ net returns as rentals, plus 10- 17% equity gain. I will probably sell most to the tenants on 30% down RE contracts. (The homes have already paid for themselves, some of them multiple times) yet... I 'buy-back' my WA home every 7 yrs in property taxes.
dcabler
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Re: which state to retire

Post by dcabler »

Marseille07 wrote: Fri Jun 11, 2021 10:12 pm I think the name of the game is to look at the states without income tax and pick the best weather. My list only contains Washington, Texas and Tennessee; but PNW I'm not liking so much, that's why I'm looking at the Dallas area.
Actually I think the name of the game is to look at your total cost of living, including all forms of tax in total, as well as climate and not focus too much on any single source of spending. I did a micro-study a number of years ago looking at a number of states and cities that we might consider in retirement by considering property tax, sales tax, and state income tax. Except for states that are already known outliers, the overall tax burden was remarkably similar. "The man" will get his money: For example, if property taxes are low, then sales tax and/or income tax will be higher. Of course everybody's situation is different, so that must be taken into account when figuring this all out.
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beyou
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Re: which state to retire

Post by beyou »

exodusNH wrote: Thu Jun 10, 2021 10:43 am
alpenglow wrote: Thu Jun 10, 2021 8:16 am
RickBoglehead wrote: Thu Jun 10, 2021 7:41 am
As to tax friendly, make sure you take as wide a few as possible. There are sales taxes (some which differ within a state), property taxes, income taxes, and taxes on assets like cars, boats, and RVs. It may not matter if an area has a high property tax, if they have no income tax. And like property taxes, some taxes (like sales tax and asset taxes) are very location-based. From one county to another could be a big difference. Also, make sure that when you look at real estate listings, you understand that property taxes are often lower for an owner-occupied home vs. a 2nd home, and sometimes seniors get a break. So when you look at two houses for $500,000, and one has property tax of $5,000 and the other has $8,000, it could be because that state gives residents a lower tax (for example South Carolina).
.
.
.
That was an excellent and very detailed post. I have a family member that is obsessed with living in tax free states and thinks I'm a moron for living in a state with income tax. Well, said person wanted to move to the Northeast and of course picked NH. Now he is complaining about high property taxes, high vehicle registration costs, high town sewer bills, etc. You have to look much deeper.
Depending on which town you're in, the property taxes aren't that bad. I have .3 acre. The property taxes are about $5,500 per year. Water and sewer are $5.50/100 cu ft (which is a lot of water). If you like to water outside, you can get a bypass meter so you're only paying the water portion which is $1.50/100 cu ft.

Car registration for new cars is generally $18 per $1000 MSRP. It drops from there. My registration for my 2019 car was $350 this year, down from $750 when I first bought it.

Other towns definitely can have higher property taxes, but those towns are easy to avoid. It's always the schools that cost money -- for me, more than 50% of my tax bill goes to the schools. There are usually abatements available for retired people.

But if you live in a modest house and drive a modest vehicle, you've basically capped your taxes. There is a 9.5% tax on prepared meals, so if you eat out a lot, you will pay that. But that's really designed as a tourist tax.

In the southern and eastern portions of the state, you're less than an hour from Boston. Winters aren't that bad -- definitely more mild than 30 years ago. Where I live, I'm 45 minutes from Boston, 45 minutes from the ocean, and 45 minutes from the mountains.
$5500/year property tax, while above the national average is a bargain coming from NYC metro area (including new and jersey, new york). I now pay 15,000. Not really worried if my vehicle reg goes up a couple hundred per year. This is a state I am considering when my spouse is ready to retire and consider moving. Tough to leave family, friends and more where I am. I too am close to beaches, major city and mountains, but at 3x the prop tax !
vested1
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Re: which state to retire

Post by vested1 »

dcabler wrote: Sat Jun 12, 2021 5:23 am
Marseille07 wrote: Fri Jun 11, 2021 10:12 pm I think the name of the game is to look at the states without income tax and pick the best weather. My list only contains Washington, Texas and Tennessee; but PNW I'm not liking so much, that's why I'm looking at the Dallas area.
Actually I think the name of the game is to look at your total cost of living, including all forms of tax in total, as well as climate and not focus too much on any single source of spending. I did a micro-study a number of years ago looking at a number of states and cities that we might consider in retirement by considering property tax, sales tax, and state income tax. Except for states that are already known outliers, the overall tax burden was remarkably similar. "The man" will get his money: For example, if property taxes are low, then sales tax and/or income tax will be higher. Of course everybody's situation is different, so that must be taken into account when figuring this all out.
It's not only taxes either. Texas is notorious for its toll roads. The town of Frisco was mentioned. We had relatives in McKinney, which is near Frisco. Average toll charges per month for someone commuting from Frisco to Dallas are $90 a month, which adds up to $1,080 a year. Average cost for commuting is 20 cents per mile on toll roads.

Of course the toll roads are great to drive on because they're almost deserted, or maybe it just seems that way, and the speed "limit" (suggestion) is 80 MPH. This makes non-toll surface roads even more congested as locals who know other routes and have the time use them heavily. It's also a nasty surprise the first time you experience the Texas system of merging on and off of the freeways, which is not for the weak of heart.

My current state of South Carolina has the highest traffic death rate per capita, which may be because there are no shoulders to be found, so when your car dies, you may follow suit. We do have a sales tax cap of $500 however, which is much appreciated when buying big ticket items. Residents of bordering states come here to buy their new cars. Transferring registration to SC for an out of state vehicle comes with a one time $250 charge from the SC DMV.
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anon_investor
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Re: which state to retire

Post by anon_investor »

beyou wrote: Sat Jun 12, 2021 6:33 am
exodusNH wrote: Thu Jun 10, 2021 10:43 am
alpenglow wrote: Thu Jun 10, 2021 8:16 am
RickBoglehead wrote: Thu Jun 10, 2021 7:41 am
As to tax friendly, make sure you take as wide a few as possible. There are sales taxes (some which differ within a state), property taxes, income taxes, and taxes on assets like cars, boats, and RVs. It may not matter if an area has a high property tax, if they have no income tax. And like property taxes, some taxes (like sales tax and asset taxes) are very location-based. From one county to another could be a big difference. Also, make sure that when you look at real estate listings, you understand that property taxes are often lower for an owner-occupied home vs. a 2nd home, and sometimes seniors get a break. So when you look at two houses for $500,000, and one has property tax of $5,000 and the other has $8,000, it could be because that state gives residents a lower tax (for example South Carolina).
.
.
.
That was an excellent and very detailed post. I have a family member that is obsessed with living in tax free states and thinks I'm a moron for living in a state with income tax. Well, said person wanted to move to the Northeast and of course picked NH. Now he is complaining about high property taxes, high vehicle registration costs, high town sewer bills, etc. You have to look much deeper.
Depending on which town you're in, the property taxes aren't that bad. I have .3 acre. The property taxes are about $5,500 per year. Water and sewer are $5.50/100 cu ft (which is a lot of water). If you like to water outside, you can get a bypass meter so you're only paying the water portion which is $1.50/100 cu ft.

Car registration for new cars is generally $18 per $1000 MSRP. It drops from there. My registration for my 2019 car was $350 this year, down from $750 when I first bought it.

Other towns definitely can have higher property taxes, but those towns are easy to avoid. It's always the schools that cost money -- for me, more than 50% of my tax bill goes to the schools. There are usually abatements available for retired people.

But if you live in a modest house and drive a modest vehicle, you've basically capped your taxes. There is a 9.5% tax on prepared meals, so if you eat out a lot, you will pay that. But that's really designed as a tourist tax.

In the southern and eastern portions of the state, you're less than an hour from Boston. Winters aren't that bad -- definitely more mild than 30 years ago. Where I live, I'm 45 minutes from Boston, 45 minutes from the ocean, and 45 minutes from the mountains.
$5500/year property tax, while above the national average is a bargain coming from NYC metro area (including new and jersey, new york). I now pay 15,000. Not really worried if my vehicle reg goes up a couple hundred per year. This is a state I am considering when my spouse is ready to retire and consider moving. Tough to leave family, friends and more where I am. I too am close to beaches, major city and mountains, but at 3x the prop tax !
I think NH still has a 5% dividends and interest tax. So something to think about for folks with a large taxable account.
vested1
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Re: which state to retire

Post by vested1 »

The best way to appease your pedantic nature about the unknown costs associated with relocating to a different state is to befriend a local and pick their brain. Hopefully you will find someone who is as obsessed with costs as you are. I would suggest an engineer who is a member of BH as a prospective penpal.

Or you could accept the fact there will be surprises, and that every aspect of what you will find is unknowable.
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beyou
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Re: which state to retire

Post by beyou »

anon_investor wrote: Sat Jun 12, 2021 6:41 am
beyou wrote: Sat Jun 12, 2021 6:33 am
exodusNH wrote: Thu Jun 10, 2021 10:43 am
alpenglow wrote: Thu Jun 10, 2021 8:16 am
RickBoglehead wrote: Thu Jun 10, 2021 7:41 am
As to tax friendly, make sure you take as wide a few as possible. There are sales taxes (some which differ within a state), property taxes, income taxes, and taxes on assets like cars, boats, and RVs. It may not matter if an area has a high property tax, if they have no income tax. And like property taxes, some taxes (like sales tax and asset taxes) are very location-based. From one county to another could be a big difference. Also, make sure that when you look at real estate listings, you understand that property taxes are often lower for an owner-occupied home vs. a 2nd home, and sometimes seniors get a break. So when you look at two houses for $500,000, and one has property tax of $5,000 and the other has $8,000, it could be because that state gives residents a lower tax (for example South Carolina).
.
.
.
That was an excellent and very detailed post. I have a family member that is obsessed with living in tax free states and thinks I'm a moron for living in a state with income tax. Well, said person wanted to move to the Northeast and of course picked NH. Now he is complaining about high property taxes, high vehicle registration costs, high town sewer bills, etc. You have to look much deeper.
Depending on which town you're in, the property taxes aren't that bad. I have .3 acre. The property taxes are about $5,500 per year. Water and sewer are $5.50/100 cu ft (which is a lot of water). If you like to water outside, you can get a bypass meter so you're only paying the water portion which is $1.50/100 cu ft.

Car registration for new cars is generally $18 per $1000 MSRP. It drops from there. My registration for my 2019 car was $350 this year, down from $750 when I first bought it.

Other towns definitely can have higher property taxes, but those towns are easy to avoid. It's always the schools that cost money -- for me, more than 50% of my tax bill goes to the schools. There are usually abatements available for retired people.

But if you live in a modest house and drive a modest vehicle, you've basically capped your taxes. There is a 9.5% tax on prepared meals, so if you eat out a lot, you will pay that. But that's really designed as a tourist tax.

In the southern and eastern portions of the state, you're less than an hour from Boston. Winters aren't that bad -- definitely more mild than 30 years ago. Where I live, I'm 45 minutes from Boston, 45 minutes from the ocean, and 45 minutes from the mountains.
$5500/year property tax, while above the national average is a bargain coming from NYC metro area (including new and jersey, new york). I now pay 15,000. Not really worried if my vehicle reg goes up a couple hundred per year. This is a state I am considering when my spouse is ready to retire and consider moving. Tough to leave family, friends and more where I am. I too am close to beaches, major city and mountains, but at 3x the prop tax !
I think NH still has a 5% dividends and interest tax. So something to think about for folks with a large taxable account.
Still cheaper for me to move there with rates this low. Note they do not have state sales tax, no tax on pension, retirement withdrawals. And I can concentrate taxable in growth stocks (low dividend), 401k and ira in bonds, value stocks ! NH considered and declined capital gains taxation in 2019 (my current state taxes cap gains as regular income).

Good resource to get basics on state taxation ;

https://smartasset.com/retirement/new-h ... ment-taxes
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anon_investor
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Re: which state to retire

Post by anon_investor »

beyou wrote: Sat Jun 12, 2021 7:44 am
anon_investor wrote: Sat Jun 12, 2021 6:41 am
beyou wrote: Sat Jun 12, 2021 6:33 am
exodusNH wrote: Thu Jun 10, 2021 10:43 am
alpenglow wrote: Thu Jun 10, 2021 8:16 am

That was an excellent and very detailed post. I have a family member that is obsessed with living in tax free states and thinks I'm a moron for living in a state with income tax. Well, said person wanted to move to the Northeast and of course picked NH. Now he is complaining about high property taxes, high vehicle registration costs, high town sewer bills, etc. You have to look much deeper.
Depending on which town you're in, the property taxes aren't that bad. I have .3 acre. The property taxes are about $5,500 per year. Water and sewer are $5.50/100 cu ft (which is a lot of water). If you like to water outside, you can get a bypass meter so you're only paying the water portion which is $1.50/100 cu ft.

Car registration for new cars is generally $18 per $1000 MSRP. It drops from there. My registration for my 2019 car was $350 this year, down from $750 when I first bought it.

Other towns definitely can have higher property taxes, but those towns are easy to avoid. It's always the schools that cost money -- for me, more than 50% of my tax bill goes to the schools. There are usually abatements available for retired people.

But if you live in a modest house and drive a modest vehicle, you've basically capped your taxes. There is a 9.5% tax on prepared meals, so if you eat out a lot, you will pay that. But that's really designed as a tourist tax.

In the southern and eastern portions of the state, you're less than an hour from Boston. Winters aren't that bad -- definitely more mild than 30 years ago. Where I live, I'm 45 minutes from Boston, 45 minutes from the ocean, and 45 minutes from the mountains.
$5500/year property tax, while above the national average is a bargain coming from NYC metro area (including new and jersey, new york). I now pay 15,000. Not really worried if my vehicle reg goes up a couple hundred per year. This is a state I am considering when my spouse is ready to retire and consider moving. Tough to leave family, friends and more where I am. I too am close to beaches, major city and mountains, but at 3x the prop tax !
I think NH still has a 5% dividends and interest tax. So something to think about for folks with a large taxable account.
Still cheaper for me to move there with rates this low. Note they do not have state sales tax, no tax on pension, retirement withdrawals. And I can concentrate taxable in growth stocks (low dividend), 401k and ira in bonds, value stocks ! NH considered and declined capital gains taxation in 2019 (my current state taxes cap gains as regular income).

Good resource to get basics on state taxation ;

https://smartasset.com/retirement/new-h ... ment-taxes
Good points! Probably why my friend that just early retired is looking to move to NH.
Marseille07
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Re: which state to retire

Post by Marseille07 »

dcabler wrote: Sat Jun 12, 2021 5:23 am
Marseille07 wrote: Fri Jun 11, 2021 10:12 pm I think the name of the game is to look at the states without income tax and pick the best weather. My list only contains Washington, Texas and Tennessee; but PNW I'm not liking so much, that's why I'm looking at the Dallas area.
Actually I think the name of the game is to look at your total cost of living, including all forms of tax in total, as well as climate and not focus too much on any single source of spending. I did a micro-study a number of years ago looking at a number of states and cities that we might consider in retirement by considering property tax, sales tax, and state income tax. Except for states that are already known outliers, the overall tax burden was remarkably similar. "The man" will get his money: For example, if property taxes are low, then sales tax and/or income tax will be higher. Of course everybody's situation is different, so that must be taken into account when figuring this all out.
I mean it has to balance out in some way. If you find areas with low taxation maybe the services provided are also poor. I do like the states without income tax though, since that's one element you can remove from the equation.

Sales tax I haven't worried too much to be honest, since it's highly variable and I've been paying ~10% anyway.

Property tax is unavoidable imo. Texas is high, but it is compensated by lower RE prices. California is low (esp. with Prop 13), but RE prices are high. The impact shows up somewhere.
RubyTuesday
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Re: which state to retire

Post by RubyTuesday »

Marseille07 wrote: Fri Jun 11, 2021 10:21 pm
anon_investor wrote: Fri Jun 11, 2021 10:16 pm
Marseille07 wrote: Fri Jun 11, 2021 10:12 pm I think the name of the game is to look at the states without income tax and pick the best weather. My list only contains Washington, Texas and Tennessee; but PNW I'm not liking so much, that's why I'm looking at the Dallas area.
I know WA, TX, TN have no income tax, but how are the home prices and property and sales taxes in those areas?
Personally I don't worry about property tax because everyone pays one way or the other. It's hard to dodge unlike the state income tax.
Sales tax might be worth a look, but it changes frequently and also difficult to target.
My property tax differences between where I am now and where I’m considering moving are a bigger difference than the income tax. Assuming you own property and are buying goods, and are in retirement and able to manage taxable income, in many places you will have lower tax burden with a larger income tax rate (that you aren’t paying) and a lower property and sales tax rate that you are paying. See the earlier post that goes through some details…
“Doing nothing is better than being busy doing nothing.” – Lao Tzu
Drovor
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Re: which state to retire

Post by Drovor »

FandangoDave5010 wrote: Fri Jun 11, 2021 12:46 am After 25 years in Northern NJ, my wife and I retired to Reno-Tahoe in Nevada in 2001. I would highly recommend this area except that we are already being overrun by thousands fleeing the San Francisco Bay Area just over the "hill."
Seems everyone says they are being overrun by Californians. 😆
Marseille07
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Re: which state to retire

Post by Marseille07 »

RubyTuesday wrote: Sat Jun 12, 2021 9:45 am
Marseille07 wrote: Fri Jun 11, 2021 10:21 pm
anon_investor wrote: Fri Jun 11, 2021 10:16 pm
Marseille07 wrote: Fri Jun 11, 2021 10:12 pm I think the name of the game is to look at the states without income tax and pick the best weather. My list only contains Washington, Texas and Tennessee; but PNW I'm not liking so much, that's why I'm looking at the Dallas area.
I know WA, TX, TN have no income tax, but how are the home prices and property and sales taxes in those areas?
Personally I don't worry about property tax because everyone pays one way or the other. It's hard to dodge unlike the state income tax.
Sales tax might be worth a look, but it changes frequently and also difficult to target.
My property tax differences between where I am now and where I’m considering moving are a bigger difference than the income tax. Assuming you own property and are buying goods, and are in retirement and able to manage taxable income, in many places you will have lower tax burden with a larger income tax rate (that you aren’t paying) and a lower property and sales tax rate that you are paying. See the earlier post that goes through some details…
I think you raised good points. Based on this, Texas is actually very low on the list: https://www.kiplinger.com/kiplinger-too ... /index.php

In fact most no-state-income-tax states are scoring mixed / bad except Nevada / Wyoming.
mathwhiz
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Re: which state to retire

Post by mathwhiz »

There are millions of snowbirds in Florida that have the best of both worlds. They spend at least 6 months +1 day in their beach condos in the most beautiful parts of the year when the temps are 70's and low 80's and humidity is low from November through April and then stay the summers at their home up north or to travel extensively. If you can afford it I would definitely consider it. You just have to be dedicated about the 6 months +1 day in Florida as some of the high tax northern states can audit you aggressively on Florida residency.
Last edited by mathwhiz on Sat Jun 12, 2021 10:12 am, edited 1 time in total.
BogleFan510
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Re: which state to retire

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pokebowl
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Re: which state to retire

Post by pokebowl »

VanGar+Goyle wrote: Fri Jun 11, 2021 4:47 am [
If you have to pick a state, then you may want to winter in Florida, and summer in Alaska,
Don't know if its worth it having a house up here in Alaska for only two months. :mrgreen:
Outer Marker
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Re: which state to retire

Post by Outer Marker »

You might find this helpful: https://smartasset.com/retirement/retirement-taxes

The "most tax friendly" . . .

"States that either have no state income tax, no tax on retirement income, or a significant tax deduction on retirement income. In addition, states in this category have friendly sales, property, estate and inheritance tax rates.
Alaska
Florida
Georgia
Mississippi
Nevada
South Dakota
Wyoming

If you want warmer weather but don't want to get into the whole Florida scene, there are nice places in GA from St. Simons Island if you like beach, to the N. GA mountains if you prefer that . . .
Marseille07
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Re: which state to retire

Post by Marseille07 »

Outer Marker wrote: Sat Jun 12, 2021 10:55 am You might find this helpful: https://smartasset.com/retirement/retirement-taxes

The "most tax friendly" . . .

"States that either have no state income tax, no tax on retirement income, or a significant tax deduction on retirement income. In addition, states in this category have friendly sales, property, estate and inheritance tax rates.
Alaska
Florida
Georgia
Mississippi
Nevada
South Dakota
Wyoming

If you want warmer weather but don't want to get into the whole Florida scene, there are nice places in GA from St. Simons Island if you like beach, to the N. GA mountains if you prefer that . . .
That's funny, a very different list than what I found on Kiplinger upthread even though they're trying to address the same question.
Last edited by Marseille07 on Sat Jun 12, 2021 11:06 am, edited 1 time in total.
ImUrHuckleberry
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Re: which state to retire

Post by ImUrHuckleberry »

Marseille07 wrote: Wed Jun 09, 2021 10:35 pm I don't know if Colorado has mild weather. You're looking at 6 months of subfreezing temperature.

I look at the states without income tax a lot myself. As far as mild weather, probably some spots of Nevada and Texas are the only places. Weather really depends on where in the state, too - Northern Nevada is pretty cold and Southern Texas is humid.
A had a friend who lived in Boulder and in the winter he frequently ice climbed in the morning and rock climbed in the afternoon.
tibbitts
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Re: which state to retire

Post by tibbitts »

vested1 wrote: Sat Jun 12, 2021 6:39 am Of course the toll roads are great to drive on because they're almost deserted, or maybe it just seems that way, and the speed "limit" (suggestion) is 80 MPH. This makes non-toll surface roads even more congested as locals who know other routes and have the time use them heavily. It's also a nasty surprise the first time you experience the Texas system of merging on and off of the freeways, which is not for the weak of heart.

My current state of South Carolina has the highest traffic death rate per capita, which may be because there are no shoulders to be found, so when your car dies, you may follow suit. We do have a sales tax cap of $500 however, which is much appreciated when buying big ticket items. Residents of bordering states come here to buy their new cars. Transferring registration to SC for an out of state vehicle comes with a one time $250 charge from the SC DMV.
I think your sampling of "deserted toll roads" may be limited.

I'm surprised the sales tax on vehicles works the way you explained but don't have personal experience with that (unlike with toll roads.) The times when I've bought a vehicle out-of-state, the dealer didn't collect sales tax (or "excise tax", or whatever the vehicle sales tax is called in a given state) if I didn't have an in-state address. They'd sell me a 30-day tag and send me on my way, to pay tax in my home state when I registered the vehicle there.
BogleFan510
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Re: which state to retire

Post by BogleFan510 »

removed by author
Last edited by BogleFan510 on Fri Jul 09, 2021 5:36 pm, edited 1 time in total.
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rocket354
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Re: which state to retire

Post by rocket354 »

anon_investor wrote: Fri Jun 11, 2021 10:16 pm
Marseille07 wrote: Fri Jun 11, 2021 10:12 pm I think the name of the game is to look at the states without income tax and pick the best weather. My list only contains Washington, Texas and Tennessee; but PNW I'm not liking so much, that's why I'm looking at the Dallas area.
I know WA, TX, TN have no income tax, but how are the home prices and property and sales taxes in those areas?
I live in TN. Home prices are very reasonable. I'm in the Nashville metro area, and just bought an 1800sf new construction home with nice appointments for 320k. 2500-2700sf homes in the same neighborhood could be had for under 400k. Caveat: this was last year, so before the most recent home price surge which may affect things some. But you get the idea.

Property tax is very low overall, but also very dependent on where you live. In Nashville proper, they just increased property tax by 34% last year as a response to covid. So if you live in Nashville, you'll be paying on the high end for TN (although still relatively low on a national level). Where I live about 30 mins away, I pay about 0.55%/year.

Sales tax is the killer. The state rate is 7% then each locality adds their own. Total is 9.25 - 9.75% in most places. As well, groceries are taxed, in the 6-7% range depending on locality.

For me, that's all ok, because I buy very little and once added up across all forms of taxation, my overall tax burden here is lower than it has been anywhere else. I pay less annual tax here, including all sales taxes, then I would pay in just property tax in many other places.
smitcat
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Re: which state to retire

Post by smitcat »

BogleFan510 wrote: Sat Jun 12, 2021 11:20 am Just thought of another criteria to consider. My wife and I plan to travel A LOT, in our early retirement years. Flights to and from certain regions have price and time advantages to consider. The lower cost of a business class ticket from say, NYC, and availability of direct flights vs somewhere without major services is worth considering. It may only be a few thousand per year, but some of these tax differences might not be much more if one takes 5-6 international and domestic trips a year to SA, Europe and Asia. Those tickets vary in price greatly and if near a major hub like ATL, HOU, DEN, DFW, NY, LAX, ect are quite a bit cheaper and may save half a day of exhausting travel per trip each way (worth a lot to me).
FWIW - we find the parking costs at the NY airports to be rediculous.
Outer Marker
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Re: which state to retire

Post by Outer Marker »

BogleFan510 wrote: Sat Jun 12, 2021 11:20 am Just thought of another criteria to consider. My wife and I plan to travel A LOT, in our early retirement years. Flights to and from certain regions have price and time advantages to consider. The lower cost of a business class ticket from say, NYC, and availability of direct flights vs somewhere without major services is worth considering. It may only be a few thousand per year, but some of these tax differences might not be much more if one takes 5-6 international and domestic trips a year to SA, Europe and Asia. Those tickets vary in price greatly and if near a major hub like ATL, HOU, DEN, DFW, NY, LAX, ect are quite a bit cheaper and may save half a day of exhausting travel per trip each way (worth a lot to me).
Airfares tend to be lower out of NYC, LAX and ORD because they are not dominated by any one carrier and there is a lot of foreign flag competition operating at those gateways. However, the major US carrier interior hubs, e.g. ATL, IAH, DFW, etc. that are dominated by a single carrier tend to have higher fares than the outlying cities served by them. This is know as the "hub premium" - which customers are willing to pay for loyalty to one carrier and the convenience of nonstop service. If you're in ATL, DL "owns" you - but if you live in Knoxville, you're just as happy to fly UA over Dulles as DL over ATL, so the fares tend to be lower, even though there's an extra flight involved. For only 5-6 flights a year, I wouldn't consider this a major factor. If I'm traveling once or twice a week on business, it makes a huge difference. That's a major reason Delta and ATL grew together as both a business and transportation center of the southeast.
StealthRabbit
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Re: which state to retire

Post by StealthRabbit »

Traveling during retirement.... Yes, certainly worth considering in selection of home(s).

We keep 3 very inexpensive homes in different USA destinations. All are rented out FT with a spare cabin and huge shop for our frequent visits (go where the weather is nice). Definitely want to add a southern hemisphere home or 2 to capture more days with 16 hrs of sunlight during Nov-March.

All homes are near good international airports. We typically fly 100+ USA / NA destinations and 4-6 international, but usually stay a long time while out. (Entire yr during each USA election year)

This will change in our No-Go yrs and we will choose our favorite view home for the duration. Each home has a separate living space for future caregiver. (If required)

First on our list is pleasant climate, good neighbors, nice view, peaceful retreat, close to services ~10 min. I actually use the list of USA national lab locations to find engaging and active retirees in beautiful surroundings! Many retirees in these regions are very well traveled, educated, talented (community music, art, drama) and very committed to keeping a nice community.

Taxes, tho significant.... are not on my 'must' criteria for relocation.

My Weighted retirement relocation spreadsheet includes taxes as one of many many criteria, but taxes can be manipulated and mitigated. Finding good Neighbors.... Not so easy. They can quickly disrupt and terminate your peaceful retirement. 2 retired LEO neighbors near my TX home, shot each other over a dog mess... One's now dead, the other in prison.
lakpr
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Re: which state to retire

Post by lakpr »

smitcat wrote: Sat Jun 12, 2021 1:23 pm FWIW - we find the parking costs at the NY airports to be ridiculous.
If you are in New York metro area, I question why do you need parking at the airport? There is plenty of mass transit connectivity to get to the airport. I live in Central NJ, a good 70 miles away from JFK, 40 miles away from EWR, never drove to the airport to park my car there. Pre-pandemic, I did take international trips at least once an year.

I needed only help from neighbors to drop me off at the nearest bus station or train station. Then off I go on my way. When neighbors aren't available, and on return, I just took taxi or Uber/Lyft.
smitcat
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Re: which state to retire

Post by smitcat »

lakpr wrote: Sat Jun 12, 2021 2:37 pm
smitcat wrote: Sat Jun 12, 2021 1:23 pm FWIW - we find the parking costs at the NY airports to be ridiculous.
If you are in New York metro area, I question why do you need parking at the airport? There is plenty of mass transit connectivity to get to the airport. I live in Central NJ, a good 70 miles away from JFK, 40 miles away from EWR, never drove to the airport to park my car there. Pre-pandemic, I did take international trips at least once an year.

I needed only help from neighbors to drop me off at the nearest bus station or train station. Then off I go on my way. When neighbors aren't available, and on return, I just took taxi or Uber/Lyft.
Long Island , NY.
marcopolo
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Joined: Sat Dec 03, 2016 10:22 am

Re: which state to retire

Post by marcopolo »

StealthRabbit wrote: Sat Jun 12, 2021 1:39 pm Traveling during retirement.... Yes, certainly worth considering in selection of home(s).

We keep 3 very inexpensive homes in different USA destinations. All are rented out FT with a spare cabin and huge shop for our frequent visits (go where the weather is nice). Definitely want to add a southern hemisphere home or 2 to capture more days with 16 hrs of sunlight during Nov-March.

All homes are near good international airports. We typically fly 100+ USA / NA destinations and 4-6 international, but usually stay a long time while out. (Entire yr during each USA election year)

This will change in our No-Go yrs and we will choose our favorite view home for the duration. Each home has a separate living space for future caregiver. (If required)

First on our list is pleasant climate, good neighbors, nice view, peaceful retreat, close to services ~10 min. I actually use the list of USA national lab locations to find engaging and active retirees in beautiful surroundings! Many retirees in these regions are very well traveled, educated, talented (community music, art, drama) and very committed to keeping a nice community.

Taxes, tho significant.... are not on my 'must' criteria for relocation.

My Weighted retirement relocation spreadsheet includes taxes as one of many many criteria, but taxes can be manipulated and mitigated. Finding good Neighbors.... Not so easy. They can quickly disrupt and terminate your peaceful retirement. 2 retired LEO neighbors near my TX home, shot each other over a dog mess... One's now dead, the other in prison.
How do you typically fly to 100+ destinations AND stay a good while? Time travel?
Once in a while you get shown the light, in the strangest of places if you look at it right.
sandan
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Re: which state to retire

Post by sandan »

Outer Marker wrote: Sat Jun 12, 2021 1:35 pm Airfares tend to be lower out of NYC, LAX and ORD because they are not dominated by any one carrier and there is a lot of foreign flag competition operating at those gateways. However, the major US carrier interior hubs, e.g. ATL, IAH, DFW, etc. that are dominated by a single carrier tend to have higher fares than the outlying cities served by them. This is know as the "hub premium" - which customers are willing to pay for loyalty to one carrier and the convenience of nonstop service. If you're in ATL, DL "owns" you - but if you live in Knoxville, you're just as happy to fly UA over Dulles as DL over ATL, so the fares tend to be lower, even though there's an extra flight involved. For only 5-6 flights a year, I wouldn't consider this a major factor. If I'm traveling once or twice a week on business, it makes a huge difference. That's a major reason Delta and ATL grew together as both a business and transportation center of the southeast.
Thanks for this tip. I've been leaning towards DFW for its access to multiple continents, but assumed prices would be similar to what I saw at LAX. Super marginal but there seems to be so many subtle perks when living near LA if there is no commute involved.
Outer Marker
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Re: which state to retire

Post by Outer Marker »

sandan wrote: Sat Jun 12, 2021 2:50 pm
Outer Marker wrote: Sat Jun 12, 2021 1:35 pm Airfares tend to be lower out of NYC, LAX and ORD because they are not dominated by any one carrier and there is a lot of foreign flag competition operating at those gateways. However, the major US carrier interior hubs, e.g. ATL, IAH, DFW, etc. that are dominated by a single carrier tend to have higher fares than the outlying cities served by them. This is know as the "hub premium" - which customers are willing to pay for loyalty to one carrier and the convenience of nonstop service. If you're in ATL, DL "owns" you - but if you live in Knoxville, you're just as happy to fly UA over Dulles as DL over ATL, so the fares tend to be lower, even though there's an extra flight involved. For only 5-6 flights a year, I wouldn't consider this a major factor. If I'm traveling once or twice a week on business, it makes a huge difference. That's a major reason Delta and ATL grew together as both a business and transportation center of the southeast.
Thanks for this tip. I've been leaning towards DFW for its access to multiple continents, but assumed prices would be similar to what I saw at LAX. Super marginal but there seems to be so many subtle perks when living near LA if there is no commute involved.
Not to hijack the tread, but just to illustrate the point, per Kayak for a random roundtrip coach purchase July 10-17 -

LAX-LHR - $1,050
DFW-LHR - $1,710
ABQ-LHR - $1,510 (connecting via DFW for $200 less than the nonstop flight!)
lakpr
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Re: which state to retire

Post by lakpr »

smitcat wrote: Sat Jun 12, 2021 2:43 pm Long Island , NY.
Surely there is an LIRR train station near you that would take you to Jamaica station and airtrain? << I feel we are going off track from the OP's question about which state to retire in, so no hard feelings if you ignore the question>>

Excellent schools in Long Island!!
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beyou
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Re: which state to retire

Post by beyou »

smitcat wrote: Sat Jun 12, 2021 2:43 pm
lakpr wrote: Sat Jun 12, 2021 2:37 pm
smitcat wrote: Sat Jun 12, 2021 1:23 pm FWIW - we find the parking costs at the NY airports to be ridiculous.
If you are in New York metro area, I question why do you need parking at the airport? There is plenty of mass transit connectivity to get to the airport. I live in Central NJ, a good 70 miles away from JFK, 40 miles away from EWR, never drove to the airport to park my car there. Pre-pandemic, I did take international trips at least once an year.

I needed only help from neighbors to drop me off at the nearest bus station or train station. Then off I go on my way. When neighbors aren't available, and on return, I just took taxi or Uber/Lyft.
Long Island , NY.
LIRR takes you to queens and then easy to get to both NYC airports. Easy drive to Islip. Nice having 3 airports competing for my business. Might take a bit longer to get to NYC airports via public transportation, but when retired I’ll have the time.
smitcat
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Re: which state to retire

Post by smitcat »

beyou wrote: Sat Jun 12, 2021 3:53 pm
smitcat wrote: Sat Jun 12, 2021 2:43 pm
lakpr wrote: Sat Jun 12, 2021 2:37 pm
smitcat wrote: Sat Jun 12, 2021 1:23 pm FWIW - we find the parking costs at the NY airports to be ridiculous.
If you are in New York metro area, I question why do you need parking at the airport? There is plenty of mass transit connectivity to get to the airport. I live in Central NJ, a good 70 miles away from JFK, 40 miles away from EWR, never drove to the airport to park my car there. Pre-pandemic, I did take international trips at least once an year.

I needed only help from neighbors to drop me off at the nearest bus station or train station. Then off I go on my way. When neighbors aren't available, and on return, I just took taxi or Uber/Lyft.
Long Island , NY.
LIRR takes you to queens and then easy to get to both NYC airports. Easy drive to Islip. Nice having 3 airports competing for my business. Might take a bit longer to get there but when retired I’ll have the time.
Well - perhaps some might think the timing and costs of taking a car to parking then a couple of trains is easy but we have tried it and its not so fun.
For a while we were able to get real cheap rentals one way and just drop them off at the airport - no such luck for a couple of years now.
YMMV
BogleFan510
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Re: which state to retire

Post by BogleFan510 »

Outer Marker wrote: Sat Jun 12, 2021 3:03 pm
sandan wrote: Sat Jun 12, 2021 2:50 pm
Outer Marker wrote: Sat Jun 12, 2021 1:35 pm Airfares tend to be lower out of NYC, LAX and ORD because they are not dominated by any one carrier and there is a lot of foreign flag competition operating at those gateways. However, the major US carrier interior hubs, e.g. ATL, IAH, DFW, etc. that are dominated by a single carrier tend to have higher fares than the outlying cities served by them. This is know as the "hub premium" - which customers are willing to pay for loyalty to one carrier and the convenience of nonstop service. If you're in ATL, DL "owns" you - but if you live in Knoxville, you're just as happy to fly UA over Dulles as DL over ATL, so the fares tend to be lower, even though there's an extra flight involved. For only 5-6 flights a year, I wouldn't consider this a major factor. If I'm traveling once or twice a week on business, it makes a huge difference. That's a major reason Delta and ATL grew together as both a business and transportation center of the southeast.
Thanks for this tip. I've been leaning towards DFW for its access to multiple continents, but assumed prices would be similar to what I saw at LAX. Super marginal but there seems to be so many subtle perks when living near LA if there is no commute involved.
Not to hijack the tread, but just to illustrate the point, per Kayak for a random roundtrip coach purchase July 10-17 -

LAX-LHR - $1,050
DFW-LHR - $1,710
ABQ-LHR - $1,510 (connecting via DFW for $200 less than the nonstop flight!)
True, but avoiding a connection and likely 3 hrs less travel time worth $200 IMHO. Good points though. Eash airport is its own micro world. For example, the SFO region is very competitive, but they know business travelers have $$, so advance planners have great deals, last minute not so much. But, 3 airports also adds options. A recent OAK to Maui direct on SW was $149 each way, plus we have a companion pass. When Norwegian was solvant we got to Barcelona for something like $151 one way, plus $50 for a bag. We upgraded to their better class for only a few hundred each on Norwegian, I recall (sadly I think Covid killed their US long haul expansion effort). :D :) :twisted: Funny to hijack a thread with air travel pricing.
30west
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Re: which state to retire

Post by 30west »

Why limit yourself to the US. If cost of living is driving your decision, consider joining the significant expat community in Mexico or Panama.
calwatch
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Re: which state to retire

Post by calwatch »

Mr.BB wrote: Fri Jun 11, 2021 3:45 pm
calwatch wrote: Fri Jun 11, 2021 12:56 pm And Hawaii has a very generous defined benefit pension exemption, including the employer share of 401k (457, 403b) matching contributions if said share is separated out as an employer contribution (which it often is, for purposes of calculating whether the employer share has vested). So if most of your income came from a defined benefit pension (including plans where there is a nonelective employee contribution, like a 401(a)), you would pay very low income tax in Hawaii. https://files.hawaii.gov/tax/legal/tir/ ... ir96-5.pdf
Looks like that data is almost 20 yrs. old. Would like to see something more updated.
This is the detailed reference from the Hawaii income tax return instructions, page 14. https://files.hawaii.gov/tax/forms/2020/n11ins.pdf
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anon_investor
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Re: which state to retire

Post by anon_investor »

30west wrote: Sat Jun 12, 2021 4:20 pm Why limit yourself to the US. If cost of living is driving your decision, consider joining the significant expat community in Mexico or Panama.
For some people a foreign country is well, too foreign...

My parents have friends that retired in foreign countries for the lower cost of living, they seemed happy, but it is not for everyone.
tibbitts
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Re: which state to retire

Post by tibbitts »

beyou wrote: Sat Jun 12, 2021 3:53 pm
smitcat wrote: Sat Jun 12, 2021 2:43 pm
lakpr wrote: Sat Jun 12, 2021 2:37 pm
smitcat wrote: Sat Jun 12, 2021 1:23 pm FWIW - we find the parking costs at the NY airports to be ridiculous.
If you are in New York metro area, I question why do you need parking at the airport? There is plenty of mass transit connectivity to get to the airport. I live in Central NJ, a good 70 miles away from JFK, 40 miles away from EWR, never drove to the airport to park my car there. Pre-pandemic, I did take international trips at least once an year.

I needed only help from neighbors to drop me off at the nearest bus station or train station. Then off I go on my way. When neighbors aren't available, and on return, I just took taxi or Uber/Lyft.
Long Island , NY.
LIRR takes you to queens and then easy to get to both NYC airports. Easy drive to Islip. Nice having 3 airports competing for my business. Might take a bit longer to get to NYC airports via public transportation, but when retired I’ll have the time.
You may have the time but won't have the carrying capacity to use public transportation when you're retired. Most people don't have the carrying capacity before they're retired, either. Even just three fairly heavy bags is a challenge (turnstiles, etc.)
emoore
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Re: which state to retire

Post by emoore »

anon_investor wrote: Fri Jun 11, 2021 10:06 pm
mnnice wrote: Fri Jun 11, 2021 9:41 pm
anon_investor wrote: Thu Jun 10, 2021 9:45 am
SchruteB&B wrote: Thu Jun 10, 2021 9:40 am I find it amusing that some posters are trying to suggest property taxes in a no income state might be higher. This might be true coming from some states, but OP is coming from NJ which is the reigning US champ for property tax rates.
HAHA. That is like someone moving from California to anywhere else, their state income tax burden is likely going to be lower! :beer
At the expense of being argumentative. California’s income tax is more progressive than a lot of places. My state tax would go down if I kept my same income. A van by the river might be the only affordable housing though.
A nice RV down by the river? :beer

On a relevant note, I have a friend that early retired this year, and he is looking at NH for tax reasons, for personal reasons it works too since he has a lot of family in the Northeast. Since NH doesn't retirement income, his pre-401k withdrawals are not subject to any NH income tax.
I was going to suggest no state and an RV. VRBO when you want to stay in a house for a couple of months? I'm struggling with this same thing too.
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anon_investor
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Re: which state to retire

Post by anon_investor »

emoore wrote: Sat Jun 12, 2021 6:39 pm
anon_investor wrote: Fri Jun 11, 2021 10:06 pm
mnnice wrote: Fri Jun 11, 2021 9:41 pm
anon_investor wrote: Thu Jun 10, 2021 9:45 am
SchruteB&B wrote: Thu Jun 10, 2021 9:40 am I find it amusing that some posters are trying to suggest property taxes in a no income state might be higher. This might be true coming from some states, but OP is coming from NJ which is the reigning US champ for property tax rates.
HAHA. That is like someone moving from California to anywhere else, their state income tax burden is likely going to be lower! :beer
At the expense of being argumentative. California’s income tax is more progressive than a lot of places. My state tax would go down if I kept my same income. A van by the river might be the only affordable housing though.
A nice RV down by the river? :beer

On a relevant note, I have a friend that early retired this year, and he is looking at NH for tax reasons, for personal reasons it works too since he has a lot of family in the Northeast. Since NH doesn't retirement income, his pre-401k withdrawals are not subject to any NH income tax.
I was going to suggest no state and an RV. VRBO when you want to stay in a house for a couple of months? I'm struggling with this same thing too.
I think you still have to have a state for tax purposes and a driver's license. So maybe find a way to be a tax resident of a no income tax state and live in an RV touring the country?
newventurer
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Re: which state to retire

Post by newventurer »

Look into NW Arkansas, don’t poopoo it till you visit, great outdoors activity - thanks mostly to Walton family money, if you are a bicyclist you already know about the many miles of world class trails, art your thing - look up Crystal Bridges (Alice Walton pet project) for living look into Bella Vista (1/3 acre wooded lots homes still in the mid to upper $200’s, lakes and golf courses) or Bentonville for better walking scores, restaurants, culture. NW Arkansas is not like most parts of Arkansas, intentionally developed to attract couples/families for WalMart/Vendor employment
quantAndHold
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Re: which state to retire

Post by quantAndHold »

anon_investor wrote: Sat Jun 12, 2021 6:52 pm
emoore wrote: Sat Jun 12, 2021 6:39 pm
anon_investor wrote: Fri Jun 11, 2021 10:06 pm
mnnice wrote: Fri Jun 11, 2021 9:41 pm
anon_investor wrote: Thu Jun 10, 2021 9:45 am

HAHA. That is like someone moving from California to anywhere else, their state income tax burden is likely going to be lower! :beer
At the expense of being argumentative. California’s income tax is more progressive than a lot of places. My state tax would go down if I kept my same income. A van by the river might be the only affordable housing though.
A nice RV down by the river? :beer

On a relevant note, I have a friend that early retired this year, and he is looking at NH for tax reasons, for personal reasons it works too since he has a lot of family in the Northeast. Since NH doesn't retirement income, his pre-401k withdrawals are not subject to any NH income tax.
I was going to suggest no state and an RV. VRBO when you want to stay in a house for a couple of months? I'm struggling with this same thing too.
I think you still have to have a state for tax purposes and a driver's license. So maybe find a way to be a tax resident of a no income tax state and live in an RV touring the country?
Full time RVers usually become residents of SD, TX, or FL. No state income tax, low fees for vehicle registrations, and easy to establish residency. If you’re dependent on the ACA for insurance, a state where you actually spend time might be a better choice, though. Someone interested in this should start asking in RV forums. This is a topic that isn’t covered well on Bogleheads.
Yes, I’m really that pedantic.
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FrugalProfessor
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Re: which state to retire

Post by FrugalProfessor »

quantAndHold wrote: Sat Jun 12, 2021 7:37 pm
anon_investor wrote: Sat Jun 12, 2021 6:52 pm
emoore wrote: Sat Jun 12, 2021 6:39 pm
anon_investor wrote: Fri Jun 11, 2021 10:06 pm
mnnice wrote: Fri Jun 11, 2021 9:41 pm

At the expense of being argumentative. California’s income tax is more progressive than a lot of places. My state tax would go down if I kept my same income. A van by the river might be the only affordable housing though.
A nice RV down by the river? :beer

On a relevant note, I have a friend that early retired this year, and he is looking at NH for tax reasons, for personal reasons it works too since he has a lot of family in the Northeast. Since NH doesn't retirement income, his pre-401k withdrawals are not subject to any NH income tax.
I was going to suggest no state and an RV. VRBO when you want to stay in a house for a couple of months? I'm struggling with this same thing too.
I think you still have to have a state for tax purposes and a driver's license. So maybe find a way to be a tax resident of a no income tax state and live in an RV touring the country?
Full time RVers usually become residents of SD, TX, or FL. No state income tax, low fees for vehicle registrations, and easy to establish residency. If you’re dependent on the ACA for insurance, a state where you actually spend time might be a better choice, though. Someone interested in this should start asking in RV forums. This is a topic that isn’t covered well on Bogleheads.
You can establish residency in SD in less than 24 hours: https://www.youtube.com/watch?v=TWc1xlNZDAY. You just need a receipt from a hotel/campground to prove that you've spent one night there. The following day, you walk out of the DMV with:

* SD Driver's license
* SD Plates
* SD Voting registration

Pay a few bucks a month for mail forwarding and you're good to go. SD apparently has some of the cheapest car insurance rates in the country.
I blog. Taxes are the lowest hanging source of alpha. I eat tax alpha for breakfast.
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BolderBoy
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Re: which state to retire

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Mr.BB wrote: Fri Jun 11, 2021 3:48 pmWouldn't that be a great piece of software. Have a U.S digital map that will do overlays of states and regions where you can compare weather, taxes and the political settings for any area of the U.S you wanted to view!
In the mid-1970s when I was looking around for a place to ultimately put down roots I hit the library and found an atlas-type of book that used varying sized black dots to indicate various degrees of XYZ (eg, earthquake risk, tornado risk, income tax rates, home prices, political leanings, etc). Covered everything I was wanting to compare, state-by-state and city-by-city within each state. For example, looking at earthquake risk I was surprised to find that Virginia's is MUCH higher than Colorado's. The black dot for California was 3" in diameter.

I would think that the data in such a book has been transferred to webserver format and continuously updated in the modern era.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
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BolderBoy
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Re: which state to retire

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FrugalProfessor wrote: Sat Jun 12, 2021 8:54 pmYou can establish residency in SD in less than 24 hours: https://www.youtube.com/watch?v=TWc1xlNZDAY. You just need a receipt from a hotel/campground to prove that you've spent one night there. The following day, you walk out of the DMV with:

* SD Driver's license
* SD Plates
* SD Voting registration

Pay a few bucks a month for mail forwarding and you're good to go. SD apparently has some of the cheapest car insurance rates in the country.
My Montana buddy snowbirds down to Winterhaven, CA (near Yuma, AZ). He tells me that 1/2 the other snowbirds he sees are driving autos/RVs with SD plates yet "live" in other states.
"Never underestimate one's capacity to overestimate one's abilities" - The Dunning-Kruger Effect
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Re: which state to retire

Post by Random Poster »

newventurer wrote: Sat Jun 12, 2021 6:54 pm Look into NW Arkansas, don’t poopoo it till you visit, great outdoors activity - thanks mostly to Walton family money, if you are a bicyclist you already know about the many miles of world class trails, art your thing - look up Crystal Bridges (Alice Walton pet project) for living look into Bella Vista (1/3 acre wooded lots homes still in the mid to upper $200’s, lakes and golf courses) or Bentonville for better walking scores, restaurants, culture. NW Arkansas is not like most parts of Arkansas, intentionally developed to attract couples/families for WalMart/Vendor employment
I seriously considered living in Bentonville.

It is a nice, clean, and seemingly safe town.

But....

It is also essentially a one-company town, dependent entirely upon the health of Wal-Mart. Sure, Wal-Mart doesn’t seem to be going away anytime soon, but I’m sure that Sears seemed like it would be around forever too back in the day,

And there will never be a Target or Costco in that town and probably a bunch of other stores that the Wal-Mart family doesn’t want in their little city, at least as long as Wal-Mart is around.

And when Wal-Mart collapses, well, I’m not sure what Bentonville will be like then.

Also, the sales tax in that area is really high. 10% or thereabouts, as I recall.
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