They list Delaware as the most friendly state for retirees.
The only downside is that you have to live in Delaware.
While Arkansas may not be on the list, the one thing we have that most states do not have is any Debt and by Law we can’t anything but a State Balanced Budget and not State Debt is allowed. So we are pretty stable and have been.
This is a good example of selectively using information to demonize states that a reporter doesn’t like - Texas in this case:
“You might be surprised to see the Lone Star State on the list of least tax-friendly states for retirees...Texas’ main problem is with its property taxes. The state’s median property tax RATE is the seventh-highest in the country.”
Note the word “rate”. Yes, it’s on the high side, but a high rate for homes that cost half as much as the more expensive states pretty much negates itself. Furthermore, if you really don’t like a high property tax rate, then live in a cheaper home, or in a condo. Try doing that with income tax.
“Sales taxes are on the high end in Texas, too. The state imposes a 6.25% tax, but local governments can tack on up to 2% more. When combined, the average state and local sales tax rate in Texas is 8.2%, which is the 14th-highest combined rate in the country.”
Except one HUGE item when it comes to sales taxes is cars, and they are always taxed at 6.25%, and that tax is on the final price of the car, so if you get $5,000 cash back, you don’t pay any tax on that $5,000 - whereas in many states you do. Also, besides cars, the flat 6.25% rate also applies to campers.
I often end up paying more state income tax in Oklahoma than I do feral tax. All “income” is taxed the same making qualified dividends not so great. Ditto SSI, it isn’t taxed if you are below the poverty level otherwise, taxed. Ditto for cap gains, all taxed the same.
Sales tax is also very high. Right at 10% where I live. Oklahoma is one of 14 states that still tax groceries. Stitt has begged the legislature to send him a bill repealing the tax on groceries. They have done nothing.
I have a young friend who lives in Wisconsin by choice. Moved there from Texas after much research. Taxes are similar but the public services are so much better. He is an outdoorsman when he can be and says the state parks and other public facilities are immaculate.
All states need revenue to live but how much they take and how well they use it eases the pain. Oklahoma is one giant speed bump from one side of the state to another. In a 35 state benchmarking study Oklahoma ranked dead last in on time and on budget road construction accountability. Good ole boys and kick backs still reign here. They build interstate highways without a lick of steel in them. Could that be why the fall apart?
I think most places are lousy just like our country has become. Lousy, don’t care, wasteful, low standard and low performance.
Bump
Of course, if you don’t own land or home in Texas, their taxes to seniors are nil. My good friends are selling the house they’ve lived in for decades and downsizing into a retirement community. I don’t think they’ve thought through the taxes but as long as their new home isn’t some type of condo, they should get a tax break for it.
I don’t know how MD didn’t make the list for the least friendly tax states.
Sure seems like they should.
The 10 most tax friendly states doesn’t even include Alaska, which is BS. No state sales tax, no state income tax, a hefty reduction on property taxes and no estate or inheritance tax. I pay about $1000 on a house assessed at $380,000. What more can Alaska do to crack the Top Ten?!
LOL. Wrong. It's more like $7,900 in property taxes for a $145,000 home.
The exact tax burden (in dollars and cents) should have been stated for every one of the listed states!
Regards,
SC (Greenville?) and Tenn (Knoxville?) already the top two retirement destinations for me. Sad, because I love Connecticut - just can't afford to retire here once I hang up my spurs.
Property taxes on residential property are a tax on consumption. The more expensive your house, the higher the taxes.
So you can control property taxes by controlling how expensive a property you live in.
And recently, property taxes have been largely offset by price appreciation.
With high property taxes in TX, you cannot own a home. You essentially rent your home from government even after you “pay it off.”
Of course, you can choose to live in a shack in the desert or ghetto to reduce your government rent payment.
Read later.
South Dakota & Wyoming should be in the top 5, I live on an plot of land just over an acre with a nice 4 br home. No state taxes and my property tax is $300 a year and certain veterans pay NO property tax. Life here is Good.