Retirement location - what's your pain (taxes) threshold to live in a state that appeals to you?

1SG Private RallyPoint Member — Thu, 25 Jul 2019 13:21:27 -0400

Response by CW5 Jack Cardwell made Jul 25 at 2019 1:25 PM

CW5 Jack Cardwell — Thu, 25 Jul 2019 13:25:45 -0400

My state not the best but definitely not the worst.

Response by LTC Stephen C. made Jul 25 at 2019 2:19 PM

LTC Stephen C. — Thu, 25 Jul 2019 14:19:20 -0400

There's no sting at all when living in Tennessee, 1SG Private RallyPoint Member! 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.

Response by CAPT Kevin B. made Jul 25 at 2019 3:34 PM

CAPT Kevin B. — Thu, 25 Jul 2019 15:34:25 -0400

The chart is misleading because it shows a generalized average for everyone. Many states have Vet adjustments. Idaho for instance has no income tax for disabled Vets retirement pay, and other income taxes go away at age 65. Property taxes have an oddly named "Circuit Breaker" discount for the home you live in (goes for everybody). No income tax? They get their money other ways. WA for instance has a high Business and Operating Tax which means prices you pay for anything are higher.
Gas is at least $.50/gal more in WA vs. ID. Oregon high income tax is offset by no sales tax to some extent. Regardless of state, you'll pay more overall where there are inflated entitlement programs. I lived in Cali for years and have watched it get worse every year for all the entities that pull money away from you. Want to build in Los Angeles? Good luck because builders now have to fork over $50/sf additional tax to cover homeless, immigrant, and other things. Good builders are leaving the state. Cost of living is getting worse. Extreme examples abound. Berkeley, CA just outlawed natural gas for new construction. Now you get to buy higher cost electricity.

Response by Col Lyman Faith made Jul 26 at 2019 12:44 AM

Col Lyman Faith — Fri, 26 Jul 2019 00:44:29 -0400

Chart is interesting, showing a square for tax on all income. However, Alabama does NOT tax military retirement.

Response by SFC Ralph E Kelley made Jul 26 at 2019 10:08 PM

SFC Ralph E Kelley — Fri, 26 Jul 2019 22:08:38 -0400

Maybe information is missing - which is the same thing.
For instance, in Kentucky there is a 6% tax on purchases plus a tax on earned income while living in the Commonwealth.
Kentucky doesn't tax military retirement, but the Federal Government does tax it.