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From a tax perspective, I was always thinking I would move to Florida where there is no income tax and now I hear there is a wealth tax....scrap that Florida idea!

So from a tax perspective,
If you have been Foolish (capital F) and
LBYM all your life,
and saved over $1,000,000...

what state does the Fool community feel is best to retire in? and why
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I would go to the Carson City area in Nevada. Beautiful, high desert area (real winters, cold but not too much actual snow) near Lake Tahoe and Reno, not too far from San Francisco; no income tax or wealth tax, low property taxes.

g
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what state does the Fool community feel is best to retire in? and why

One with adequate fresh water.
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I "think" South Dakota is considered the ideal tax state - from all perspectives - but this is from my research as a full-time RVer.

C.
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what state does the Fool community feel is best to retire in?

It depends on what you like. At that point I would be worrying more about quality of life than tax arbitrage.

--B+C
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One with adequate fresh water.


Is there such a place?

I'm asking because I live in the Pacific Northwest, where it's rainy, damp, and there are lakes and rivers galore. Our primary source of energy is hydroelectric power.

However, this place has built up and overgrown so much, even our water supply gets strained sometimes. A couple of years ago when California was having its energy/electrical crises, we were selling them some of our power. Well, one relatively dry summer and we were short power, too, and rates shot thru the roof. Voluntary water conservation was under way, and we were asked not to water our lawns.

Were you thinking of a rural area, maybe? If you could find a place where people are moving AWAY, it might work out. (Could get decent housing prices, too).
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There is more to life than tax codes. Check out the site www.findyourspot.com You plug in many options, some of which are tax based, and it spits out a bunch of places to consider. Every one's idea of nirvana will be different to some degree.

Let us know what you find.

IP
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From a tax perspective, I've heard that Pennsylvania is an attractive state for retirees since they don't tax income drawn from pensions and other retirement vehicles?


There must be some info somewhere published by Money or Kiplingers that provides the analysis on this topic.


Good Luck - VL
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From a tax perspective, I've heard that Pennsylvania is an attractive state for retirees since they don't tax income drawn from pensions and other retirement vehicles?

*******************

PA's regular income taxes are also pretty low - 2.8% IIRC. The rub is that other costs can eat you up. Look at real estate along the NYS - PA border and you'll find similar stuff in PA is usually substantially more expensive.
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<<One with adequate fresh water.


Is there such a place?

I'm asking because I live in the Pacific Northwest, where it's rainy, damp, and there are lakes and rivers galore. Our primary source of energy is hydroelectric power.

However, this place has built up and overgrown so much, even our water supply gets strained sometimes. A couple of years ago when California was having its energy/electrical crises, we were selling them some of our power. Well, one relatively dry summer and we were short power, too, and rates shot thru the roof. Voluntary water conservation was under way, and we were asked not to water our lawns.

>>


There isn't generally any good reason for a water shortage in western Washington, in my opinion. There are enormous untapped fresh water resources if government were willing to exploit them, which Seattle is not willing to do. The Seattle city government prefers to avoid the investment to expand water supplies, and then cry "emergency" and restricts consumption when dry years or poor water management (spilling too much water over dams) creates shortages.

They get to impose their environmentalist scarcity theory on everyone when there is no earthly need to do so.



Seattle Pioneer
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They get to impose their environmentalist scarcity theory on everyone when there is no earthly need to do so.


It doesn't surprise me in the least that environmentalists are behind this.
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I "think" South Dakota is considered the ideal tax state - from all perspectives - but this is from my research as a full-time RVer.

As far as taxes, NH is the only state in the union with NO state taxes. There are local property taxes and such, but that's it.
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As far as taxes, NH is the only state in the union with NO state taxes. There are local property taxes and such, but that's it.

NH has income tax on dividends and interest. About half a dozen states have no state income tax.

But I think the lack of income tax is overrated. We have no income tax in Washington State, but the other taxes more than make up for it. In some ways, an income tax is preferable because you know where it is going to be and can plan for it. Sales tax, fees, and the like are harder to avoid.
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But I think the lack of income tax is overrated. We have no income tax in Washington State, but the other taxes more than make up for it. In some ways, an income tax is preferable because you know where it is going to be and can plan for it. Sales tax, fees, and the like are harder to avoid.

I agree completely. We have no state income tax in Tennessee (although there is some income tax on certain investments, etc. but it doesn't apply to me), but our sales tax is 9.25% in my county (8.25% on food), and our property taxes in my city are extremely high as well, and they seem to go up considerably every other year. I wouldn't mind paying the property taxes if I felt that I was getting something for it, but we're not. Our schools here are terrible, the roads suck, I have to pay for my own garbage, and recently they tacked on a $22 charge per month on to my power bill for fire department service. That's a sneaky charge that's a tax but disguised as something else.

Taxes are a sore subject with me, can you tell?

RMB

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But I think the lack of income tax is overrated. We have no income tax in Washington State, but the other taxes more than make up for it. In some ways, an income tax is preferable because you know where it is going to be and can plan for it. Sales tax, fees, and the like are harder to avoid.

Hear hear! When I was researching retirement states about 10 yrs ago I found that except for a few tax prohibitives states, the general cost of living was of much more importance. And on top of that the expensive states usually have the highest income taxes and sales taxes anyway.



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From a tax perspective, I've heard that Pennsylvania is an attractive state for retirees since they don't tax income drawn from pensions and other retirement vehicles?

*******************

PA's regular income taxes are also pretty low - 2.8% IIRC. The rub is that other costs can eat you up. Look at real estate along the NYS - PA border and you'll find similar stuff in PA is usually substantially more expensive.



This is also important to rememebr about PA: The STAT E income tax is low and it is a flat tax so it's "easy". BUT... PA is fairly unique in that every township (what everybody else calls a "county" if I recall correctly. Or maybe it's a Borrough?) has their own little "income tax" that you never hear about in discussions of "State income taxes". It actually makes PA taxes competative if not greater than many states
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NH has income tax on dividends and interest. About half a dozen states have no state income tax.

You are correct, I should have stated NH has no state income or sales taxes.

But I think the lack of income tax is overrated. We have no income tax in Washington State, but the other taxes more than make up for it. In some ways, an income tax is preferable because you know where it is going to be and can plan for it. Sales tax, fees, and the like are harder to avoid.

I agree. My husband has been wanting to move to Florida because of no income tax, but I feel the cost of living more than offsets the taxes.
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>>>One with adequate fresh water.

Is there such a place?<<<


I know it may not score high on most retirement lists because of taxes and winters but upstate NY generally has lots of water available.

Just look for a white space on the map.

Doug
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Lots of white space on that map.


VL
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As far as taxes, NH is the only state in the union with NO state taxes. There are local property taxes and such, but that's it.

Do you mean no sales tax, no income tax, etc?

C.
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Albany area has one of the lowest costs of living in the country. Low property taxes. But I have been told when looking at NY State be careful of which county you choose because some have very high property taxes (and I'm not just talking about counties close to NYC.)

g
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<<But I think the lack of income tax is overrated. We have no income tax in Washington State, but the other taxes more than make up for it. In some ways, an income tax is preferable because you know where it is going to be and can plan for it. Sales tax, fees, and the like are harder to avoid.


>>


I respectfully disagree.

With an income tax, you tend to be stuck if you earn an income. With a sales tax, you can avoid paying much in taxes if you live frugally, save and invest. That can make it significantly easier to accumulate wealth.

Even spending money has a lot of choice involved. You can spend $50,000 for a car and pay $4400 in sales taxes in Washington State, or $5000 and pay $440 in taxes. The choice is yours.


Furthermore, there is a significant amount of resistance to raising the sales tax, especially when it gets to a high level such as the 8.8% rate in much of the state.

And low income people pay a lot in sales taxes and are often a part of that coalition opposing sales tax increases.



Seattle Pioneer

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From a tax perspective, I've heard that Pennsylvania is an attractive state for retirees since they don't tax income drawn from pensions and other retirement vehicles?

Depending on where you live, PA can be a bargain. A couple of years ago however, Kiplingers ranked them dead last out of the states based on all taxes. While state income taxes are currently low, (and rising,) and pensions acrued while a PA resident are not taxed, the property taxes can be huge. The Kiplingers report took info based on the state capitols, Harisonburg in this case which has high property taxes, but if you live in other areas the taxes are not so high. Most townships also have now or in the near future their own earned income tax to help pay for schools. Our township went from having 50% fo school costs paid by the state to an all time low of 14%...thus the need for more local taxes.

I just did a search for the article, but can't find it. I did find references to some retirement report Kiplingers is willing to sell you. How kind.

IP


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Here are a couple of articles dealing with states and their taxes in retirement

This gives the states, their taxes and shows if social security and pension income is taxed in the state.

http://tinyurl.com/2wcr3

Retirement Tax Bite State by State

http://moneycentral.msn.com/articles/retire/basics/9838.asp

Toni:)
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From a tax perspective, I've heard that Pennsylvania is an attractive state for retirees since they don't tax income drawn from pensions and other retirement vehicles?

What other people have said -- they know more about it than I do.

However, I have just driven from Virginia to Indiana, and I can say unequivocally that the PA highway system stinks. It is wildly undermaintained. You can tell the minute that you cross the border into or out of PA, because the quality of the highway either goes down or up drastically.

I strongly doubt that I will retire in PA.

phantomdiver
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Money info is interesting. Thank you.

Looks like one might afford a tiny cottage in Pennsylvania or a big palace in Alabama, LOL.

Do any states or counties charge school taxes separately?

VL
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