Posted on 12/12/2008 12:17:01 PM PST by BenLurkin
From a tax perspective, determining which state is the "right" state to retire in will depend on the type and amount of income that you reasonably expect to receive. The nine states that, as of 2008, do not assess income tax of any kind (Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, Tennessee and New Hampshire) do not automatically qualify as the best for all retirees. If you own several rental properties, then the best state for you may differ from someone whose primary income outside of Social Security will come from pensions or IRAs.
There are four major categories of income for which states differ in their methods of taxation:
Pensions Social Security Sales Tax Property Tax
Pension Income
If you're looking to escape taxation of your pension at the state level, your options are pretty limited. Currently, as of 2008, there are only three states that do not tax pension income:
Illinois Mississippi Pennsylvania
New York has stipulations for some government employees to receive tax-free pension income, but not all retirees. These three states exempt virtually any kind of income received from tax-deferred accounts, including pensions, IRAs and qualified plans.
If your pension is from the government or the military, then seven more states open up for consideration: Alabama, Hawaii, Kansas, Louisiana, Massachusetts, Michigan and New York.
If the aforementioned states do not appeal to you as retirement havens, seven others exempt at least a portion of pension income from taxation: Delaware, Georgia, Minnesota, New Mexico, Utah, Virginia and West Virginia.
States that tax all retirement income at relatively high rates include California, Connecticut, Nebraska, Rhode Island and Vermont. More complete information on how each state taxes their residents' pension income can be found at RetirementLiving.com.
(Excerpt) Read more at finance.yahoo.com ...
Gonna be a dental floss tycoon????
AV
MMMmmmmm roated pig.....
i cant wait to leave NYC and go south.
gonna have to do a lot of research. schools and taxes and gun laws and climate and housing prices will be considerations.
I hear the property tax in Texas is high.
Montana sucks, now go tell all your friends.
It is. Thats the problem here. They tax ya one way or another.
One out on property tax is to get a RV and declare that your primary residence
then they told me to go back and tell everyone how much i hated the state. they do NOT want us there.
but it was gorgeous and the people were very nice. introduced me to new levels of drinking. so i am forever grateful.
You are retiring at 47?
Take a look at mid to south Missouri. Taxes and cost of living are low. Ditto Tennessee. I can take deer, turkey, fish, etc. Drive a ways north and pheasant and quail are available.
are arkansas taxs high?
i am not married yet but am with the girl i will marry. i assume our kids will be just reaching high school age when we move so schools will be a major consideration.
and to answer your next question: i am a cop in NYC. do 20 years and out!
Sweet. Hope the plan holds up
Stevenson WA, no income tax, go across the Columbia River and shop in Oregon, no sales tax. Buy inexpensively on a hill overlooking the Columbia River at the bridge of the Gods. Live in a small town, safe and friendly. 45 mintues from Portland and half the rainfall.
Don’t know Arkansas very well.
Nor do I
reporting from the enemy-held territory of NYC...
We were just discussing whether bennys would hold out on the Limbaugh thread.
It has been my experience that company’s and Gov will rewrite the agreements over time without your consent.
Build a personal nest egg
If your income is under $30,000 you pay no Georgia Income Tax.
Some North Georgia Counties don’t even have hospitals and some offer “hospital lite” without maternity options or major surgery options. Atlanta has good heart hospitals, though.
You are assuming all of these great pensions will be funded and/or the cost of living adjustments will take place. I think you are going to witness entire state systems going bankrupt OR more likely the COLA’s being eliminated or adjusted.
and hide the egg
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