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MMC
06-28-2011, 06:13 AM
http://finance.yahoo.com/focus-retirement/article/112987/tax-unfriendly-states-retirees?mod=fidelity-livingretirement&cat=fidelity_2010_living_in_retirement

Some states offer attractive tax benefits for retirees. Then there are these ten tax hells, which have earned a place on our "do not live here for your second act" list either because of higher-than-average taxes across the board or because of policies that don't exempt much retirement income from state taxation.

#1 VERMONT
State Income Tax: 3.55%-8.95%
State Sales Tax: 6% (localities can add another 1%)
Estate Tax/Inheritance Tax: Yes/No

There are no exemptions for retirement income in the Green Mountain State, except for Railroad Retirement benefits (which are exempt in every state). Out-of-state pensions are fully taxed. Vermont exempts medical devices and prescription and nonprescription drugs from its 6% sales tax. But it imposes a 9% tax on prepared foods, restaurant meals and lodging, and a levies a 10% sales tax on alcoholic beverages served in restaurants. Real estate taxes have two components: school property tax and municipal property tax collected by towns and cities where the property is located. The Tax Foundation, a nonprofit tax-research group in Washington, D.C., lists Vermont's property tax among the ten highest in the nation.

#2 MINNESOTA
State Income Tax: 5.35%-7.85%
State Sales Tax: 6.875% (cities and counties can add another 2.65%)
Estate Tax/Inheritance Tax: No/No

Minnesota offers retirees cold comfort on the tax front. Social Security income is taxed to the same extent it is taxed on your federal return. Pensions are taxable regardless of where your pension was earned. Income-tax rates are high, and sales taxes can reach 9.53% in some cities. Food, clothing, and prescription and nonprescription drugs are exempt from sales taxes. The North Star State does offer some residents 65 and older who have income of $60,000 or less the option of deferring a portion of their property tax. But this is a low-interest loan, not a tax-forgiveness program.

#3 NEBRASKA
State Income Tax: 2.56%-6.84%
State Sales Tax: 5.5% (localities can add another 1.5%)
Estate Tax/Inheritance Tax: No/Yes

There are no tax breaks for Social Security benefits and military pensions in the Cornhusker State. Real estate is assessed at 100% of fair market value. Residents 65 and older qualify for a homestead exemption on property taxes. Food and prescription drugs are exempt from state sales taxes. But Nebraska imposes an inheritance tax on all transfers of property and annuities.

This is nice to know but it is also quite deceptive don't you think. This list does not include Illinois. Which Cook County Illinois and Chicago have a 10% sales tax. Which would include all Suburbs of the City of Chicago.

Otherwise this list does not surprise me with the NE of the Country. Althought NY is missing from the list. So include the top 3 major Cities in the Country. Now why do seniors think that the left is about looking out for their interests. Thoughts?

DGUtley
04-30-2023, 09:30 AM
On the other hand... 10 Most Tax-Friendly States for Retirees

If you live in one of these tax-friendly states for retirees, your retirement savings could last longer. As you approach retirement, or if you're already there, you may be thinking about moving to a different state to live out your golden years. If that's the case, consider moving to one of the most tax-friendly states for retirees. It can make a huge difference when you're trying to stretch out your retirement savings.

Of course, there are other things to think about if you're exploring relocation. For instance, you'll want to take climate, proximity to family and friends, access to quality health care, and a host of other important factors into account before picking a new location. But make sure you add taxes on retirees in any state you're considering to the list of primary factors. Depending on your situation, the total state and local tax burden in one of the best states to retire for taxes can be thousands of dollars less per year than in another.

To help you compare state taxes on retirees, try using Kiplinger's State-by-State Guide to Taxes on Retirees (https://www.kiplinger.com/retirement/600892/state-by-state-guide-to-taxes-on-retirees) (opens in new tab). But if you're just looking for the 10 best states to retire in for taxes, check out the list below. Our results are based on the estimated state and local tax burden in each state for two hypothetical retired couples with a mixture of income from wages, Social Security (https://www.kiplinger.com/retirement/social-security), traditional IRAs (https://www.kiplinger.com/retirement/retirement-plans/traditional-ira), Roth IRAs (https://www.kiplinger.com/retirement/retirement-plans/roth-iras), private pensions, 401(k) plans (https://www.kiplinger.com/retirement/retirement-plans/401ks), interest, dividends, and capital gains. One couple had $50,000 in total income and a $250,000 home, while the other had $100,000 in income and a $350,000 home.

https://www.kiplinger.com/retirement/601814/most-tax-friendly-states-for-retirees

Section31
05-01-2023, 09:35 AM
It depends largely on what the individual is looking for when retirement comes around. I looked into tax friendly states five years before actually retiring and they seem to change from time to time.

We chose South Dakota as our domicile although we don't "live" there. We travel.

DGUtley
05-01-2023, 09:41 AM
We don't know what we're going to do.

Thfan132
05-01-2023, 12:05 PM
We looked into property down south for winter. (Be a Snowbird) Wife said why not an rv? Then we can go wherever. So that is currently the plan.

DGUtley
05-01-2023, 12:10 PM
She doesn't want to leave:

57077


57078

Collateral Damage
05-01-2023, 12:21 PM
On the other hand... 10 Most Tax-Friendly States for Retirees

If you live in one of these tax-friendly states for retirees, your retirement savings could last longer. As you approach retirement, or if you're already there, you may be thinking about moving to a different state to live out your golden years. If that's the case, consider moving to one of the most tax-friendly states for retirees. It can make a huge difference when you're trying to stretch out your retirement savings.

Of course, there are other things to think about if you're exploring relocation. For instance, you'll want to take climate, proximity to family and friends, access to quality health care, and a host of other important factors into account before picking a new location. But make sure you add taxes on retirees in any state you're considering to the list of primary factors. Depending on your situation, the total state and local tax burden in one of the best states to retire for taxes can be thousands of dollars less per year than in another.

To help you compare state taxes on retirees, try using Kiplinger's State-by-State Guide to Taxes on Retirees (https://www.kiplinger.com/retirement/600892/state-by-state-guide-to-taxes-on-retirees) (opens in new tab). But if you're just looking for the 10 best states to retire in for taxes, check out the list below. Our results are based on the estimated state and local tax burden in each state for two hypothetical retired couples with a mixture of income from wages, Social Security (https://www.kiplinger.com/retirement/social-security), traditional IRAs (https://www.kiplinger.com/retirement/retirement-plans/traditional-ira), Roth IRAs (https://www.kiplinger.com/retirement/retirement-plans/roth-iras), private pensions, 401(k) plans (https://www.kiplinger.com/retirement/retirement-plans/401ks), interest, dividends, and capital gains. One couple had $50,000 in total income and a $250,000 home, while the other had $100,000 in income and a $350,000 home.

https://www.kiplinger.com/retirement/601814/most-tax-friendly-states-for-retirees
Tennessee. We did a lot of research before moving here23 years ago, inclusive of current taxes, retirement taxes, climate, medical care, COL, etc. It's likely where we will stay home based, though we have talked about a place to go for the January-February months, likely Southwest. I'm not a Florida fan.

Collateral Damage
05-01-2023, 12:22 PM
She doesn't want to leave:

57077


57078
Come for a visit. That's the only way you (she) will ever know.

Thfan132
05-01-2023, 12:51 PM
Tennessee. We did a lot of research before moving here23 years ago, inclusive of current taxes, retirement taxes, climate, medical care, COL, etc. It's likely where we will stay home based, though we have talked about a place to go for the January-February months, likely Southwest. I'm not a Florida fan.

SE Tennessee was where we were looking. Actually had a 5 acre plot picked out to put a cabin on. Beautiful, wooded, with a mountain (way)background. Not to mention 3 golf courses within a 30 minute drive. (one of my requirements) Then my wife got in her head and thought about going to the same place all the time, and there you go, RV it is.

Collateral Damage
05-01-2023, 02:24 PM
SE Tennessee was where we were looking. Actually had a 5 acre plot picked out to put a cabin on. Beautiful, wooded, with a mountain (way)background. Not to mention 3 golf courses within a 30 minute drive. (one of my requirements) Then my wife got in her head and thought about going to the same place all the time, and there you go, RV it is.
We are outside of Knoxville. The RV has been discussed, mainly to not have to buy an additional house (and furnishings) for a couple months out of the year. The outlay for one of those can be expensive if you go brand new, plus fuel to get there (wherever 'there' is).

NoisyBoy
05-01-2023, 02:36 PM
Mobile AL is my want to destination.Unfortunately it is only mine

Section31
05-02-2023, 10:05 AM
We looked into property down south for winter. (Be a Snowbird) Wife said why not an rv? Then we can go wherever. So that is currently the plan.

Yep. Same here we travel to where ever we feel like it.

DGUtley
05-02-2023, 10:12 AM
Mobile AL is my want to destination.Unfortunately it is only mine

I've spent some time in Fairhope, Alabama. I have a buddy that lives there. He's trying to talk me into buying a place there.