Posted on Jul 25, 2019
Retirement location - what's your pain (taxes) threshold to live in a state that appeals to you?
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Responses: 5
CW4 Craig Urban
Florida. They do not tax military pensions or social security. California is the worst. Thank god I worked in Orlando for a year as a contractor.
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Chart is interesting, showing a square for tax on all income. However, Alabama does NOT tax military retirement.
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There's no sting at all when living in Tennessee, 1SG (Join to see)! The chart is really somewhat misleading, because the majority of the taxpayers don't have enough interest and/or dividend income to be a significant income tax factor.
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LTC Stephen C.
Lived in middle Tennessee since early 1991, 1SG (Join to see) One time, my wife and I discussed about moving at retirement age and thought about it only briefly. The geography here is beautiful to include hills and lakes, the climate is temperate, the cost of living is excellent, people are friendly and there's no state income tax! We're already living in the perfect spot!
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LTC Stephen C.
Average sales tax in Tennessee is 9.492%, SFC Christopher Smith, and there are reduced taxes for some grocery items. Gasoline tax is $.26/gallon.
Granted, the sales tax can be viewed as a form of income tax, but all states must generate revenue (generally from taxes), regardless of how they're imposed. However, in the State of Tennessee (and many others as well) this burden is mitigated and shifted somewhat as every traveler and tourist in Tennessee must also pay these taxes. With highly trafficked interstates (75, 65, 24, 40 and 81) and Tennessee rapidly becoming more and more popular as a tourist destination, we have thousands of non-residents that are helping to fill the state's coffers.
Granted, the sales tax can be viewed as a form of income tax, but all states must generate revenue (generally from taxes), regardless of how they're imposed. However, in the State of Tennessee (and many others as well) this burden is mitigated and shifted somewhat as every traveler and tourist in Tennessee must also pay these taxes. With highly trafficked interstates (75, 65, 24, 40 and 81) and Tennessee rapidly becoming more and more popular as a tourist destination, we have thousands of non-residents that are helping to fill the state's coffers.
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