I’ll earn my higher-than-US-average pay in California, and as soon as I retire, will move to a significantly cheaper state to spend that retirement money.
https://fee.org/articles/here-are-the-10-states-where-you-ll-pay-the-highest-lifetime-taxes/I’ll earn my higher-than-US-average pay in California, and as soon as I retire, will move to a significantly cheaper state to spend that retirement money.
https://fee.org/articles/here-are-the-10-states-where-you-ll-pay-the-highest-lifetime-taxes/
8 comments:
Wise plan. I know some of our friends are moving out of high tax cities to the country. Some are moving to Florida, others are moving to Arkansas. I think we'll stay here because our kids are all here. Here, of course, being Texas.
Texas is #1 on my list of considerations.
Let me recommend Port Aransas if you like the beach. You might watch this somewhat goofy travel show on Texas called Daytripper. You can find it here:https://www.washingtonexaminer.com/opinion/loudoun-county-parents-take-the-lead-against-critical-race-theory
He works out of the Austin area, but travels the state to large cities and small towns. It might give you a taste of the variety of the choices between beach, forest, great plains, desert and mountains.
Darren, remember that there's no income tax in Texas, which is great while you're working here, but kinda sucks after you've retired, because the state gets its taxes from property taxes and sales taxes.
Depending on where you are in Texas, your property taxes will be about 2-3% of the value of your property every year. That's not some made-up value that's a fraction of the property's value; it's what the appraisal district thinks your place would sell for. So, a $300K house (only available in the far suburbs) would have property taxes of $6-9K annually.
The state sales tax is 6.25%, and most cities add another 1-2% on top of that.
I've made a spreadsheet of likely places, and it includes property tax and sales tax rates!
Property taxes are an issue, but after you're 65 they're frozen. And it's still cheaper than many other states.
What other states are you considering?
Florida, but I'm not sure where.
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