Lowest taxes

[takethisbread]

You do realize that PA does not tax any retirement source of income (pensions, retired military, 401K, etc)? No other state that I know of along the AT does that. So if you have any of that, you're going to trade possibly lower property taxes for higher income taxes? We're considering PA for retirement just for that reason. All of hubby's retirement income will be from the non-taxed sources. We can get more property there for a LOT less money and thereby have lower property taxes than we do now. We've heard the "OMG, PA property taxes are so high!" Not compared to what we are paying now they aren't. We live in Maryland.

Duncannon was always an ideal retirement spot in my mind


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[Don H]

In PA it's the local school taxes that can get you.

[perrymk]

As I'm about 6 1/2 years from retirement (with a little luck) I spend probably too much time looking at cost of living vs lifestyle vs services. One thing is certain, governments need money to provide services. The idea is to go to places that either have natural resources to pay them or to go to places that only have services to pay for that interest you.

Although not exactly what you asked for, one can hike from Alabama along the Pinhoti and I believe one other trail and access the AT. When I lived in Alabama in the early 90s the joke was one could double the property tax and still have the lowest in the country. There is a state income tax but certain incomes are exempt, such as gov't pensions.

Georgia has been mentioned. Something else to ask about their tax structure are senior exemptions. I seem to recall that seniors qualify for certain property tax exemptions as well as income tax exemptions. Income limits may apply but if one exceeds the limit then cost of living may not be your biggest concern anyway.

An extreme example is Alaska. Outside of city limits there are no property taxes and Alaska has no state income tax. The downside is outside of city limits you are pretty much on your own. No fire service, often no police service (they are too far away to be of practical emergency benefit), little chance of getting homeowners insurance (no one insures a house with a fire place and no fire department) plus you will pay extra high gas price for the all-wheel drive vehicle you need to go anywhere.

I hope you'll share what info you come up with as it really is of interest to me. Right now I am in Florida but not the Florida most people think of when they think Florida. It's more like rural Georgia but with wimpy hills. No state tax, good homestead exemption on property tax, and in my area a not bad cost of living.

[4eyedbuzzard]

In PA it's the local school taxes that can get you.

Same in NH. If you live in a small town the school budget can eat you alive. One, teachers salaries and the number of mandated "specialists" keeps going up every year by close to 6%. Then all it takes is for one very expensive to educate student to move in and the town is on the hook for the costs, given that the state sped emergency/contingency funding is overwhelmed and underfunded. We had one instance in our small town to the tune of @$250K per year. It wasn't fun trying to explain mandated spending at that town meeting.

[Old Grouse]

There are other considerations. As we age it's helpful to have good medical care within a reasonable distance (sigh).

[daddytwosticks]

I think it's pretty obvious: stay below the Mason-Dixon line with regards to taxes. Total cost of living and climate would probably win out also.

[pipsissewa]

This is a very interesting subject, and very complex. We've tried to analyze the same issues before. One problem with the Forbes article is valuation. If two states have have very different taxes rates expressed as a percentage of the property value--say .5 percent and 1.5 percent--the winner seems obvious. However, consider this: identical properties in two states with the same tax rate--say a 1500 square foot house on 4 acres outside of town--may be valued at $150,000 in one state and $400,000 in the other state! There is also a city component to property tax, so in-town will differ from in the county. So, nearly impossible to analyze.

Also, with regard to income tax, maybe Pennsylvania exempts retirement income from income tax. NC exempts SOME retirement income (although that exemption is changing--retired state and federal government employees will fair best). Retirement income may not be that high and you'll be in a lower tax bracket. Again, hard to pin down exact figures.

SALES TAX is critical to look at too. You'll always be buying stuff. Tennessee sales tax can be as much as 9.75%. Sales tax as well as property tax usually have a county and sometimes even a city component. Again, almost impossible to calculate.

As mentioned above, some states have homestead exemptions. NC does not.

So, you see, it gets extremely complicated. The analysis is dependent on your situation. If you're going to be living on a fixed income and want to cash in your lifetime residence to buy a gentlemen's farm, the analysis will be completely different than if you have a real good retirement income and want to downsize to a maintenance-free two bedroom condo (so you can hike more!!!)

Thanks for bringing up this subject and thanks to all the members for their responses. I am continuing to read this thread with great interest.

[10-K]

The OP asked which state that the AT runs through has the lowest taxes, implying that he meant lowest taxes for someone retired and not working.

The "ding-ding-ding" answer to his question is Georgia.

But like 4EB said above, that alone is just one metric for deciding where to retire. But, you have to start asking direct questions when you retire and start getting direct answers.

So the first question may be: "I want to live in a state the AT runs through. Which one has the lowest taxes?"

Answer: Georgia

And on to the next criteria, the next, and so on and then, once you have all your information compile it and based on several things, of which taxes are only a part, decide where to retire.

Here are 10,100,000 results for the Google search, "most tax friendly states for retirement". https://www.google.com/search?q=most...m=119&ie=UTF-8

Edited to add: I wouldn't let the tax tail wag the dog when deciding where to retire.

[ALLEGHENY]

Thanks again everyone.

[Venchka]

RE: Senior's property taxes. Do any of the AT proximity states offer Seniors (65+) any breaks on their property taxes?
Here in Texas most local taxing authorities grant Seniors an additional amount on their homestead exemption. In addition to that, property taxes are capped at the amount levied in the year you turn 65. In the event taxes decline, Seniors pay the lower amount, but never exceed the capped amount.
Something to look at.
As for states that don't tax retirement income, all states with no state income tax will not tax your retirement income. Or any other money you earn for that matter.
Look at the whole picture.

Wayne

[Drybones]

If you work, live in TN near the border, they have no income tax but a fairly high sales tax. I lived in Portand, TN, about 4 miles from KY which had a low sales tax, which is where we shopped...you get the best of both. The property tax in NY was 14 times higher than what I paid in MS.

[Alligator]

Since you have gotten a bit of information on the states it passes through, there is also the Great Eastern Trail. This would add in Alabama, Kentucky, and significantly more of West Virginia to places you might consider.

[Teacher & Snacktime]

I think you should consider VA..

HikerMom wants us ALL to move to Roanoke! Snacktime is willing!

[4eyedbuzzard]

I wouldn't let the tax tail wag the dog when deciding where to retire.

Yeah, I think there are greater concerns. Taxes are just part of the cost of living equation. But even that doesn't take into account geographic preference, family, climate, etc. There are just so many factors to balance. The number one to me is, where am I going to be happiest?

[ALLEGHENY]

Yeah, I think there are greater concerns. Taxes are just part of the cost of living equation. But even that doesn't take into account geographic preference, family, climate, etc. There are just so many factors to balance. The number one to me is, where am I going to be happiest?

I can see more of the picture now.
thanks!

[Mags]

I think it's pretty obvious: stay below the Mason-Dixon line with regards to taxes. Total cost of living and climate would probably win out also.

Again, that was my Dad's strategy. Quite frankly, he lives in a less-than-spectacular place in NC (not near the ocean, not near the mountains). Keeps it less $$$$. But, they do have excellent health services apparently as the university has a medical school.

When New England was getting slammed with snow, he half-kiddingly lamented the 1-2" he rec'd!

I still say, at least back East, seems like anything north of the Mason-Dixon line is not the most friendly place to retire.

In my Dad's case, his house is both nicer and less $$$ than the house in RI. Utilities and food are less. Infrastructure is in better shape. Taxes are less.

( Yeah..I'm just shy of 40. But it is on my mind more lately.....)

[daddytwosticks]

This is a very interesting subject, and very complex. We've tried to analyze the same issues before. One problem with the Forbes article is valuation. If two states have have very different taxes rates expressed as a percentage of the property value--say .5 percent and 1.5 percent--the winner seems obvious. However, consider this: identical properties in two states with the same tax rate--say a 1500 square foot house on 4 acres outside of town--may be valued at $150,000 in one state and $400,000 in the other state! There is also a city component to property tax, so in-town will differ from in the county. So, nearly impossible to analyze.

Also, with regard to income tax, maybe Pennsylvania exempts retirement income from income tax. NC exempts SOME retirement income (although that exemption is changing--retired state and federal government employees will fair best). Retirement income may not be that high and you'll be in a lower tax bracket. Again, hard to pin down exact figures.

SALES TAX is critical to look at too. You'll always be buying stuff. Tennessee sales tax can be as much as 9.75%. Sales tax as well as property tax usually have a county and sometimes even a city component. Again, almost impossible to calculate.

As mentioned above, some states have homestead exemptions. NC does not.

So, you see, it gets extremely complicated. The analysis is dependent on your situation. If you're going to be living on a fixed income and want to cash in your lifetime residence to buy a gentlemen's farm, the analysis will be completely different than if you have a real good retirement income and want to downsize to a maintenance-free two bedroom condo (so you can hike more!!!)

Thanks for bringing up this subject and thanks to all the members for their responses. I am continuing to read this thread with great interest.

NC DOES have a Homestead Exemption for county property taxes. However, you must be over the age of 65 or totally and permanently disabled AND have a yearly income less than $28,600. In addition, if you are a totally disabled veteran, you can get a county property tax break also, no age or income restrictions.

[pipsissewa]

That's right. I forgot about that.

[Drybones]

HikerMom wants us ALL to move to Roanoke! Snacktime is willing!

If you like the outdoors Roanoke would be tough to beat, lived there five years and loved it, wish I'd been a hiker then. They have the New River south of town (fantastic floats and fishing), James River north of town, Appalachian Trail one side and Blue Ridge Parkway the other, two huge National forests nearby, Washington and Jefferson, with great hunting or whatever you do in the woods. Dont know about now but back then it was a fairly large city with a small town atmosphere...great people there. Was nice having the airport and shopping five minutes away also.

[gpburdelljr]

http://www.kiplinger.com/tool/retire...s-on-retirees/