5 most tax unfriendly states to retirees

johnlobb

Well-known Member
Yahoo Finance just posted an article detailing the 5 most tax unfriendly states for retirees. In no order because people have differing tax situations, they are: California, Maine, Connecticut, Nebraska and Iowa. I guess these would be states to eliminate when thinking of where to retire. What do you think?
 
TENNESSEE NO STATE INCOME TAX, Low property taxes, About the only thing is sales tax right at 10% Not a bad place to retire.
 
Illinois ain't too hot either. Second worse State concerning pension fund and other debts. So far, the only thing the State legislature can do is kick the can down the road, but when they finally get around to really paying it off...look out for a huge splash of new taxes.
 
That's where I've got my eye Jerry.

'Course after the talk that Lee and I had,it sounds like the drug situation there could be a bit of a problem in some areas.
 
(quoted from post at 15:09:08 08/22/13) TENNESSEE NO STATE INCOME TAX, Low property taxes, About the only thing is sales tax right at 10% Not a bad place to retire.
But if you're retired, you won't have any income to tax.... Just saying...
 
Why do you think so many retirees move to Florida and Arizona thsts because they both don't have state income tax.
I am retired and live in Indiana and my state income tax is over two grand a year.
 
I can think there are a lot more important things to think about in retirement decisions than the state tax rate. Where family is, friends, weather, doctors that know you, what you like to do, ect. For example, perhaps some one that likes to go to pro-baseball games and fish in the ocean should not move to South Dakota. Nothing wrong with SD, a great place with great people, and a low state tax rate. I am just saying.
 
My folks have lived in Florida for 25 years. Their cost of living has gone up a lot. I believe that Florida is now the 12th most expensive state to live in. Of course, if it gets down to 80 or less, the residents are wearing jackets...
 
If you're as free as we are in our RV type of retirement lifestyle, just because you establish legal residence in a no state income tax state doesnt mean you have to LIVE THERE 24 7 365. Sure, you have to to what it takes to become a legal resident for no state income tax purposes, but establishing residence doesnt mean youre stuck there and only there the rest of your life......We have RV friends who winter in Texas and return to Indiana for the summer but have established legal Texas residency for their tax advantages. I kinda like the freedom to live and travel where a person chooses in the USA, kinda hard to be against such freedom I figure unless you favor locking people up in one state only.

From what Ive seen I dont think I will choose to become a California resident lol

John T
 
Michigan has moved up in cost, the current governor decided that pensions should be taxed, at the same time giving a tax break to corporations. Easy to see who's side he is on.
 
Everyone is missing one important point. EVERYONE should pay the same tax RATES regardless of employment status.
 
The article you are quoting only considered income tax rates. Yes some of your retirement income is taxed in Iowa but the state sales tax is 6-7% depending on your local option. There are income tax free states that have high sales taxes. This will hit the average person much harder than taxes on retirement income. Also the cost of living is a bigger concern than the income tax. Few retires pay much in the way of state income taxes.
 
Drugs Sure no worse around here than most places and really probably not as bad here where I am. We are 100mi west of Nashville , pretty rural area. See and here of meth ever now and then but that is about it.
 
Not true. I lived in Florida all of my 53 years. I will not get a jacket out until it gets below 70. Right now as hot as its been 70 sounds pretty good. Yes some county's here have really high taxes. My property taxes are not that bad but move over to the next county and they double from what I'm paying. The closer you get to either coast the higher the taxes. We don't consider Miami-Dade county part of Florida where I'm at. If anybody wants it they can have it
 
Just dig it off the mainland and ship it to South and Central America.Lot of them types down there.

Vito
 
You have to look at property tax and sales tax if you are retired. That is where your money will be going to.
 
Arizona does have state income tax, but it is not a high rate. Real estate taxes are relatively low - but sales tax will take a slice whenever you purchase anything except groceries. Churches are not exempt from sales tax in AZ as they are in most other states. Even state agencies have to pay sales tax to the Dept. of Revenue - seems kind of wierd, but that's the way it is.
 
Geeze wish you hadn't posted this...If Minnesota's governor sees it he'll have to call a special session to get us back in the top 5.
 
I chose not to be a Californa resident also. We live in a condo in Incline Village, Nevada near Lake Tahoe. Honest, check my drivers Lic, my voting registeration, my tax returns, or my conceled weapons permit. I am a Nevada resident. We also have a 2nd home in Martinez CA up against Briones Regional Park. We vacation there sometimes.
 
(quoted from post at 14:48:59 08/22/13) Everyone is missing one important point. EVERYONE should pay the same tax RATES regardless of employment status.

I tend to disagree. Everyone should pay the same AMOUNT of taxes - period. The military protects your life just like mine and there shouldn't be a different value placed on that based upon how much you make versus how much I make. (But this [u:f5a2d4d391]true [/u:f5a2d4d391]flat tax won't ever see the light of day.)
 
getting ready to retire in a few months, don't wanna pay any tax
only thing I will say , is corporations and generally speaking rich folks, EMPLOY people
average joe citizen and retiree's do not
what you find is you hammer away at corps or rich guys , they move their business elsewhere
bob
 
I once told my CPA, you think I am dumb enough to pay you $500 in accounting costs to save $300 on my taxes?

I suggest you really put a pencil to it. Add real estate sales costs, new home purchase trip costs, moving costs, set up costs etc etc etc.

So wow, you will save $1000/yr, but spend $12000 to do it and totally disrupt your life in your golden years. Fuzzy thinking. All states have there good and bad, don't over react.
 
You said "don't wanna pay any tax "

So you don't use the roads, or need EMS or fire protection, you are safe from invasions, grandkids not in schools?
no medicare needs?

Good thing everyone is not so selfish.

I've heard this old line before. But when you really get in trouble. When you get sick and can't pay your bills, You, like everyone else will be lined up at the governments door asking for support.
 
The "rain" tax was passed early this year. Gonna cost me $170 a year. Couple of years ago they passed a "flush" tax. Both of them are to "save the bay" but the money will go somewhere else.
 
I think Minn ranks right up near the top and they are having a special session anyway. I am confused on the service tax they enacted as this would affect me doing doing work on farm tractors. The self employment tax is what I have to pay, wish I made enough to have to pay income tax.
 
(quoted from post at 18:33:51 08/22/13) Geeze wish you hadn't posted this...If Minnesota's governor sees it he'll have to call a special session to get us back in the top 5.

He already tried to get anyone that spends more than 30 days in the state a resident for tax purposes
 
(quoted from post at 22:04:47 08/22/13) I think Minn ranks right up near the top and they are having a special session anyway. I am confused on the service tax they enacted as this would affect me doing doing work on farm tractors. The self employment tax is what I have to pay, wish I made enough to have to pay income tax.

They extended the sales tax to repair of agriculture equipment. Parts are still exempt. In some ways it makes it easier since labor for other types or repair were already taxed.

Somehow that provision just mysteriously got included in the bill and the Governor was surprised when he found out about it after he signed it into law. They raised taxes 3 billion to cover a possible 500 million shortfall and now they just can't seem to figure out how to get by with any less money so it sounds like we are going to be stuck with it.

As for how it would affect you I'm guessing that it would depend on whether you operate as a business or do your customers hire you as a laborer.
 
American --- It is obvious you have been a taker all your life or you would not consider a person desiring to keep his or her's own money as ''selfish'' --retirees with assets and income are whats known as valuable citizens, thats why in general, states and municipalities compete for these type of people to choose their areas to retire to, they are valuable because they spend money at businesses that employ people and on services that employ people. Employment and trade, also known as doing business, is the way wealth is built and the economy expands, not stealing peoples income through taxation and then squandering the proceeds supporting the lazy and stupid. If you are going to call yourself ''American'' why don't you at least make an attempt to understand the principles this great country was founded on?
 
the idea is to tax rain run off from impervious surfaces. Which theoretically causes rain water pollution. So, the assesment would somehow be on the impervious surfaces, not rain, which you can never depend on, as we know. MD is a spend, spend, tax, tax & tax state. Governor O"Malley has aspirations of running for president so you will get to know him well soon. The coo-coo"s are about ready to go on parade again, soon.
 
Saw a TV special not long ago where the retirees were moving to somewhere in South America ? There was alot of them there now. There money goes a lot longer way down there.
 
(quoted from post at 13:25:18 08/22/13)
(quoted from post at 15:09:08 08/22/13) TENNESSEE NO STATE INCOME TAX, Low property taxes, About the only thing is sales tax right at 10% Not a bad place to retire.
But if you're retired, you won't have any income to tax.... Just saying...

Not true. There is not tax in most states on Social Security but most often other retirement income is indeed taxable.

Rick
 
You said "It is obvious you have been a taker all your life or you would not consider a person desiring to keep his or her's own money as ''selfish'' "

What kind of fuzzy thinking is that?
1) I bet I have had many years when I paid more federal income tax than you paid in a decade. The tax statistics tell that most years I paid more taxes than 97% of the USA citizens.

2) Senior citizens, (and I am one) are large recipeints of government programs. Yes we paid in over the years, but now we are getting it back at a very good return rate. I feel sorry for the young people, who are forced to pay in like we did, but may find it all used up when they get to be our age.

I responded to a guy who said he wanted to pay NO TAXES. That is selfish, given the high level of governemt services we enjoy.

I pay the taxes I owe based upon the law, no more -- no less.

PS: To the folks willing to move to South America to avoid taxes....be my guest...They could not pay me enough to live there.
 
(quoted from post at 16:01:59 08/22/13)
(quoted from post at 14:48:59 08/22/13) Everyone is missing one important point. EVERYONE should pay the same tax RATES regardless of employment status.

I tend to disagree. Everyone should pay the same AMOUNT of taxes - period. The military protects your life just like mine and there shouldn't be a different value placed on that based upon how much you make versus how much I make. (But this [u:0dfd661e31]true [/u:0dfd661e31]flat tax won't ever see the light of day.)

Uh, are you saying everyone should actually pay the same amount or percentage? A retired old lady living on SS and Warren Buffet should pay the same AMOUNT? I don't think so. Percentage or rate, yes, but not base amount. Unless that is you figure the Fed, State County and local gov can get along on, say, $150.00 from every tax payer.......which ain't a bad idea!
 
I doubt very seriously that you have paid more taxes than I have in my life but it could be so, I am not yet retired and still paying, how many years did you pay the maximum in Social Security? You were probably a government employee which means you were still a net zero as far as taxes go, only takers and goobermint workers ''enjoy'' governemnt services -- the rest of us pay your way.
 
(quoted from post at 07:25:50 08/23/13)
(quoted from post at 16:01:59 08/22/13)
(quoted from post at 14:48:59 08/22/13) Everyone is missing one important point. EVERYONE should pay the same tax RATES regardless of employment status.

I tend to disagree. Everyone should pay the same AMOUNT of taxes - period. The military protects your life just like mine and there shouldn't be a different value placed on that based upon how much you make versus how much I make. (But this [u:7829bebfd4]true [/u:7829bebfd4]flat tax won't ever see the light of day.)

Uh, are you saying everyone should actually pay the same amount or percentage? A retired old lady living on SS and Warren Buffet should pay the same AMOUNT? I don't think so. Percentage or rate, yes, but not base amount. Unless that is you figure the Fed, State County and local gov can get along on, say, $150.00 from every tax payer.......which ain't a bad idea!

I thought my statement was fairly clear - the same amount. Why is it for government services we charge people based upon what they make for income? Where is that supported in the Constitution? If you and I walk into a restaurant and order the same steak dinner we both get charged the same amount - they don't ask for our W2's first to see how much they should charge for that steak.

There are 18 enumerated powers in the Constitution. Do they should do those 18 things, charge everyone the same amount for those services and go home.
 
You have a very narrow and obviously limited view of our society. Millions of people max'd-out SS annually. I am not a big fan of our government but it sure beats all the other ones in countries I have visited around the world.

Like so many people, it is so easy to curse the government....until EMS saves your childs life, or a tornado blows your house away, or you can't go to work because there is no road, or you want to check the weather for crops, or you want water that is safe to drink.
 
The question was how many of your working years did you pay the social security maximum in to the system? The government is not responsible for replacing my home if a tornado takes it out, or a flood or a fire or a war for that matter, that is a concept that had no precedent until very recent years and look what FEMA has spawned, more people with their hands out after every natural calamity, the majority of whom never provided themselves or their families with a home to start with. Roads, garbage pick up and the like are all local services that are funded locally from various taxes such as gasoline and fuel taxes, special property tax millages etc. A working person where I live pays full price for ambulances and emergency services, either with their private insureance or cash or both, people who are dependent on the tax payers for their living recieve these services free.
 
Puhleez. We know him as Gubner Owe'Muttley around here.....

Yeah- we got a 'flush' tax a few years ago, and I still gotta pay it if I pee behind a wagon. Thank God I don't have to pay for each and every cow!

And now we have a 'rain' tax. Now, this year has been a bumper crop of rain for the lowere end of the state, but a normal one here along the Mason Dixon line. My question is, will I get a rebate if we have a drought, and we don't get much rain?

And, another thing that PO's me, is they just increased the fuel tax. Talk about smoke and mirrors, it'll 'only be 6%, and phased in over a few years.' 1% this year is about 4 cents. But it will equate to a 25 cent increase in just a few SHORT years. And it will be earmarked to mass transit in the Baltimore to Washington corridor. If you're not in the B_W corridor, there is no benefit to paying it, but we still have to. Hell, that's more than 3/4 of the state!!!!

And this jerk thinks he will be the NEXT PRESIDENT!!!!!

Rant done...
 
Don't overlook capital gains on investments. I remember one year,back when I was milking cows,I owed enough that I could have bought a new pickup with the money. An uncle who had some good investments at the time said he had to pay enough to buy two new cars.
 
(quoted from post at 08:14:31 08/23/13) You have a very narrow and obviously limited view of our society. Millions of people max'd-out SS annually. I am not a big fan of our government but it sure beats all the other ones in countries I have visited around the world.

Like so many people, it is so easy to curse the government....until EMS saves your childs life, or a tornado blows your house away, or you can't go to work because there is no road, or you want to check the weather for crops, or you want water that is safe to drink.

All of which were to be handled by the States. My view of society has nothing to do with this. My view of the government has to do with the Constitution. Everything else should be left to the states as stated in the 9th and 10th amendments.
 
Interesting theory and I agree in concept, but I have lived in several states, some large, some small, and frankly they are not all that efficient or effective. Lots of cronyism, NIH, and frankly there really isn't much point in doing the same research, planning, administration 50 times. Add to that the things that must be nationwide, air traffic control, food and drug certification, defense. Interstate system, SEC.

My state is bankrupt due to terrible pension planning over the last 20 years. And seemingly unwilling to tackle the problem. Pass it on to the next election.

I really struggle to find the things that are handled significantly and measurably better at the local level. Look at education. By and large it is a locally controlled situation. Local teachers, local admin. Local buildings.

"No child left behind" is just a convenient scapegoat to blame for the last 25 years of failure.

I think it is too easy to over simplify the problems our government has to address, local state or nationsl.

I don't advocate a nation takeover, but state and local control is no panaccea either.
 
(quoted from post at 12:03:02 08/23/13) Interesting theory and I agree in concept, but I have lived in several states, some large, some small, and frankly they are not all that efficient or effective. Lots of cronyism, NIH, and frankly there really isn't much point in doing the same research, planning, administration 50 times. Add to that the things that must be nationwide, air traffic control, food and drug certification, defense. Interstate system, SEC.

My state is bankrupt due to terrible pension planning over the last 20 years. And seemingly unwilling to tackle the problem. Pass it on to the next election.

I really struggle to find the things that are handled significantly and measurably better at the local level. Look at education. By and large it is a locally controlled situation. Local teachers, local admin. Local buildings.

"No child left behind" is just a convenient scapegoat to blame for the last 25 years of failure.

I think it is too easy to over simplify the problems our government has to address, local state or nationsl.

I don't advocate a nation takeover, but state and local control is no panaccea either.

It's not an interesting theory. It's how we were supposed to operate. The 50 states (countries) were to handle their own affairs with the federal government being small and handling the few things the individual states couldn't (common defense, post office, federal judiciary, common money etc..) I'd rather have 50 states trying things and having one of them come up with a better way than some singular overlord in some far off place tell me he knows what's best for me. Every state was supposed to be its own liberty experiment. If you didn't like yours - MOVE. Now with this overreaching centralized government - it's the same everywhere. Where can you move too?

I much prefer local control. People are much more accountable if they live in your own community. Are all of them always right? - No! But if one local school board screws up the education for their kids in one state that doesn't mean you should advocate that the federal government should take over the education of all states. What have THEY ever done well (other then military in most cases)?!?! "No child left behind" is central government control of education - and spending has gone up and scores have gone down! You proved MY point.

The federal government should be so small that the presidency should be a part time position.
 
Indiana has 3.4% income tax plus 1% county. Florida may not have state income, however look out for the property taxes.

If taxes are your problem, check out tripple tax free bonds.

I'm putting of drawing SS, because it too is taxed. Plan to go out of business completely before I draw my SS. May wait until I'm 70.
 

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