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Taxation Nation: Which State Taxes Matter to You?


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(On Edit, the main piece from Schwab is behind a paywall so I got permission to post it here, it is down below.)

Excellent information for choosing a domicile or state to hang up our keys in. This info is why we chose Colorado. Our property taxes are 3 or more times lower than many other states. The long term capital gains tax here is relatively low too: 4.55 percent.

We want no more of the climate in the Southern states. We prefer cold to heat anyway. You can always put on more clothes. And we have a backup fireplace we rarely use.

Sources:

https://client.schwab.com/app/learn/#/story/taxation-nation-which-state-taxes-matter-to-you

Capital Gains Taxes by state here: https://smartasset.com/taxes/state-capital-gains-tax

Edited by RV_

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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8 hours ago, RV_ said:

We want no more of the climate in the Southern states. We prefer cold to heat anyway. You can always put on more clothes. And we have a backup fireplace we rarely use.

 

I'm a 180 on that boss.

Retired USN Engineer

2020 Ram 2500 Bighorn 6.7 Diesel

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The Swab link require an account login.

Safe Travels...

Roger, K4RS and Toni, K1TS
Amateur Radio Operators - Motorcycle Riders (Harley Davidson Tri-Glide Ultra)

Fulltime from 2003-2016 - Now longtime RVers

On the road, living the dream...
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The following states do not tax capital gains:

  • Alaska
  • Florida
  • New Hampshire
  • Nevada
  • South Dakota
  • Tennessee
  • Texas
  • Wyoming
1 hour ago, Chalkie said:

I am too. And pictures sent to me of their last snow storm only reinforced it. 

Me too. I lived 3 1/2 years in CO and another 18 in WY. I really enjoyed my time there and WY was a great place to raise our 3 sons. I enjoyed trout fishing, hunting, hiking, backpacking and we even took a 2 week horseback trip with the family into a MT national wilderness area but my days for those activities are long gone. Because a traveled the area making service calls in those days I still watch the road reports from the highways that I used to drive and this has been great year to be retired to the deep south.

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

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10 hours ago, markandkim said:

I'm a 180 on that boss.

Great! We can agree to disagree! 👍🖖

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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I have a low consumptive lifestyle, but relatively high income.

When I moved from Idaho to Washington I thought I died and gone to heaven!!  I could not believe how much more money I had at the end of the month.

I did not mind paying taxes in Idaho.  Idaho did a real good job of spending taxpayers dollars, but it was a small population state with some REAL expensive costs just due to the topography of the state.

In Washington state, I paid to build sports stadiums for the two richest men in the world at the time.  I paid to provide tax breaks to several of the richest corporations on the face of the earth!!! 

Thankfully, in Washington state the tax income comes primarily from small business taxes and sales taxes.

AND Washington sales taxes exempt food, medical care, and a whole host of other necessities.  So I never pay them to help out MicroSoft, Boeing, Amazon, Paccar, and a whole host of other mega-corporations.

I do NOT regret that I did not pay my fair share in Washington state taxes to help MicroSoft, Boeing, Amazon, Paccar and all those other corporations.

Edited by Vladimir

Vladimr Steblina

Retired Forester...exploring the public lands.

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5 hours ago, Chalkie said:

As a former 30 year Colorado resident, I am too. And pictures sent to me of their last snow storm only reinforced it. 

 

Gary I don't care if everyone felt that way. Lots of folks all over the great ski countries and four season places in the US choose them over hot humid places. Different strokes are alright by me. I am from Connecticut originally BTW.

Edited by RV_

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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2 minutes ago, Vladimir said:

I have a low consumptive lifestyle, but relatively high income.

When I moved from Idaho to Washington I thought I died and gone to heaven!!  I could not believe how much more money I had at the end of the month.

I did not mind paying taxes in Idaho.  Idaho did a real good job of spending taxpayers dollars, but it was a small population state with some REAL expensive costs just due to the topography of the state.

In Washington state, I paid to build sports stadiums for the two richest men in the world at the time.  I paid to provide tax breaks to several of the richest corporations on the face of the earth!!! 

Thankfully, in Washington state the tax income comes primarily from small business taxes and sales taxes.

AND Washington sales taxes exempt food, medical care, and a whole host of other necessities.  So I never pay them to help out MicroSoft, Boeing, Amazon, Paccar, and a whole host of other mega-corporations.

I do NOT regret that I did not pay my fair share to MicroSoft, Boeing, Amazon, Paccar and all those other corporations.

So I take it cold doesn't bother you either. In cold or hot there are a large percentage of folks that do not go out in their area's extremes. If you drive around any subdivision in 100℉ high humidity areas the streets are deserted. Those folks, not everyone, are inside the A/C. And when it is 10 degrees outside and a winter storm here the folks that say they like cold are indoors unless they have to be out in the warmth. I love Washington State too. Especially around the Olympic peninsula and the Hoh National park and all of the stuff to do and see around the Columbia river. As well SEATAC and McChord AFB (Now a joint base with Ft Lewis I think) FamCamp Campgounds where we stayed for a couple of weeks twice to tour Seattle from. We also like the area around the Evergreen CoHo Coop where we stayed for a week and did the Wooden Ships Festival in Port Townsend. Astoria OR and the Warrenton OR  Camp RileaFamcamp and that area were awesome too. If it were not for the dark winters we would love Alaska to live as it was in 1999 when we did a season there entering by RV 1 May 1999 and leaving on 5 September.

BTW I am from Southern Connecticut 40 miles from NY City, loved it too.

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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4 hours ago, k4rs said:

The Swab link require an account login.

Safe Travels...

Sorry Roger, I just called Schwab and as long as I include the link and it is not for profit they said it is OK to post here with attribution:

 

Taxation Nation: Which State Taxes Matter to You?

Nov 11, 2022

 
Your overall tax liability is heavily dependent on where you live. Here's your state-by-state guide to who charges what.
 
BrandJ_Q422_FT_GreatStates_3x2.jpg
 

Income, estate, property, sales—you name it, there's a tax for it. Except, that is, for those states that forgo such taxes in a bid to lure individuals and businesses.

"Whether you're a retiree, a remote worker, or just looking for a change of scenery, the idea of pulling up stakes for purportedly greener pastures isn't that unusual these days," says Hayden Adams, CPA, CFP®, director of tax and financial planning at the Schwab Center for Financial Research. "However, the tax implications can be profound, so it's smart to take a hard look before you break out the packing tape."

When thinking about relocating, taxes are only one of many factors to weigh, including climate, lifestyle, proximity to family, and the availability and quality of health care. "Taxes shouldn't be your first consideration," Hayden says. "So, if you wish to live by the beach or close to one of your kids, for example, figure out all the places you could live—then take a look at which taxes matter most based on your situation and stage of life."

High earners in their prime working years might gravitate toward those states that don't tax earned income—namely, Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. However, the picture is generally more complicated than that. "Florida's lack of an income tax may seem like a bargain, but property tax there is high, and the government raises the bulk of its revenue through state and local sales taxes," says Hayden, "That's why it's important to consider your entire tax burden."

Here's how all 50 states and Washington, D.C., levy income, estate, property, and sales taxes—along with guides to capital gains and Social Security taxes, and how to evaluate a state's trust laws.

Income tax

Whether a state has an income tax can be an important factor—especially for those in the highest tax brackets who rely primarily on ordinary income from wages and retirement accounts (as opposed to long-term investment income).

According to data from the Tax Foundation,1 the states with the highest individual income tax collections per capita—excluding local taxes—are:

  1. New York ($2,656)
  2. Massachusetts ($2,477)
  3. Connecticut ($2,268)
  4. California ($2,135)
  5. Oregon ($2,038)

Such numbers, however, don't tell the whole story. Take Oregon: While the state taxes anyone making more than $125,000 at its highest rate of 9.90%, Oregon also allows taxpayers who make under $125,000 to deduct up to $5,950 of federal income taxes from their state income tax liability. In fact, it is one of only six states that allow you to deduct your federal taxes either partially (Missouri, Montana, and Oregon) or in full (Alabama, Iowa, and Louisiana) from your state income tax liability.2

And while Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming levy no personal income tax whatsoever, Washington does impose a 7% tax on the sale or exchange of long-term capital assets such as stocks, bonds, business interests, or other investments and tangible assets (see "What about capital gains?"). And New Hampshire doesn't tax income from wages, but it does tax dividend and interest income.3

Hayden also notes that using a tax-friendly state as your primary residence may not offer much tax benefit if you work part or full time somewhere else. Nonresidents of Colorado, for example, may be required to file a state tax return if they received income from a source in Colorado or spend even a single day working there.

"Even if you're in your vacation house too long, some states might want a cut," Hayden says. "And certain states, including California and New York, can be extremely aggressive about going after income taxes. Some can go so far as to check social media to see where you've been spending time." 

What about capital gains?

The federal government taxes short-term capital gains (on assets held for a year or less) at the same rate as your ordinary income, and long-term capital gains at 0%, 15%, or 20%, depending on your tax bracket.

In addition, a majority of U.S. states levy capital gains taxes, with rates ranging from 2.90% to 13.30%.4 The states with no additional state tax on capital gains are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming. (Visit your state's tax website for more details.)

"That said, these rules change frequently as states compete for business and investment," says Hayden Adams, CPA, CFP®, director of tax and financial planning at the Schwab Center for Financial Research, "so be sure to check with a tax advisor who is familiar with the relevant state and local tax laws."

Property tax

Depending on where you live, property taxes can account for as much as 63% of state and local tax collections (hello, New Hampshire).5 What's more, such taxes can rise alongside home values. "This is of particular concern to those on a fixed income," Hayden says. "Will you be able to keep up with property taxes as your home value increases? Typically, higher property values mean higher property taxes."

To compare states, homeowners should look at the effective property tax rate, which is total property taxes paid divided by total home value.

Using 2020 data from the Tax Foundation's report,6 the states with the highest effective property tax rate are:

  1. New Jersey (2.21%)
  2. Illinois (2.05%)
  3. New Hampshire (1.96%)
  4. Vermont (1.82%)
  5. Connecticut (1.76%)

Whereas the states with the lowest effective property tax rate are:

  1. Hawaii (0.31%)
  2. Alabama (0.39%)
  3. Colorado (0.54%)
  4. Louisiana (0.54%)
  5. West Virginia (0.55%)

To put those figures in perspective, a homeowner in New Jersey whose property is valued at $400,000 would pay $8,840 in property taxes ($400,000 x 2.21%), whereas a homeowner in West Virginia with an identical property value would owe only $2,200 ($400,000 x 0.55%).

Since property taxes are determined by local (not state) jurisdiction, it's best to check with a specific city or county for its property tax rates.

Sales tax

Of all the taxes we pay, sales taxes are typically the easiest to understand. After all, they're right there on the receipt—though not in Alaska, Delaware, Montana, New Hampshire, and Oregon,  which dispense with statewide sales taxes altogether. (Of these, only Alaska allows localities to charge sales taxes.)7

The highest per capita local sales tax collections occur in:

  1. Louisiana (9.55%)
  2. Tennessee (9.55%)
  3. Arkansas (9.47%)
  4. Washington (9.29%)
  5. Alabama (9.24%)

"States with low or no income taxes need to generate revenue from somewhere," Hayden says. "They often turn to sales taxes—which might not be as high as an income tax, but it can add up, especially on popular big purchases like boats and cars."

Income, property, and sales taxes across America

No state is entirely tax-free.

State Income tax collections per capita* Effective property tax rate State and local sales tax?‡ Quality of life ranking
AL $851 0.39% 9.24% #46
AK $0 (lowest) 1.02% 1.76% #45
AZ $633 0.65% 8.40% #39
AR $968 0.64% 9.47% #44
CA $2,135 0.73% 8.82% #24
CO $1,306 0.54% 7.77% #16
CT $2,268 1.76% 6.35% #20
DE $1,703 0.59% 0.00% (lowest) #23
DC N/A 0.61% 6.00% N/A
FL $0 (lowest) 0.91% 7.01% #10
GA $1,093 0.91% 7.35% #18
HI $1,621 0.31% (lowest) 4.44% #25
ID $1,040 0.70% 6.02% #5
IL $1,401 2.05% 8.81% #30
IN $1,224 0.84% 7.00% #32
IA $1,241 1.50% 6.94% #12
KS $1,150 1.32% 8.70% #26
KY $1,072 0.82% 6.00% #41
LA $841 0.54% 9.55% (highest) #50 (lowest)
ME $1,353 1.25% 5.50% #27
MD $1,732 1.04% 6.00% #17
MA $2,477 1.14% 6.25% #9
MI $896 1.38% 6.00% #38
MN $1,914 1.10% 7.49% #2
MS $629 0.65% 7.07% #49
MO $959 0.99% 8.29% #28
MT $1,235 0.75% 0.00% (lowest) #33
NE $1,247 1.61% 6.94% #6
NV $0 (lowest) 0.60% 8.23% #37
NH $89† 1.96% 0.00% (lowest) #4
NJ $1,659 2.21% (highest) 6.60% #19
NM $580 0.66% 7.84% #48
NY $2,656 (highest) 1.38% 8.52% #21
NC $1,198 0.82% 6.98% #13
ND $484 0.95% 6.96% #14
OH $702 1.58% 7.22% #36
OK $850 0.88% 8.97% #43
OR $2,038 0.94% 0.00% (lowest) #22
PA $952 1.49% 6.34% #40
RI $1,132 1.43% 7.00% #34
SC $996 0.56% 7.44% #42
SD $0 (lowest) 1.18% 6.40% #15
TN $8† 0.68% 9.55% (highest) #29
TX $0 (lowest) 1.66% 8.20% #31
UT $1,141 0.59% 7.19% #3
VT $1,186 1.82% 6.24% #11
VA $1,737 0.87% 5.75% #7
WA $0 (lowest) 0.88% 9.29% #1 (highest)
WV $1,086 0.55% 6.52% #47
WI $1,445 1.63% 5.43% #8
WY $0 (lowest) 0.56% 5.22% #35

Tax Foundation; U.S. Census Bureau, Annual Survey of State Government Tax Collections, 2020. Property: Tax Foundation; U.S. Census Bureau, 2020 American Community Survey. Sales: Tax Foundation; Sales Tax Clearinghouse. Quality of life: World Population Review, "Quality of Life by State 2022."


*Fiscal year 2020. 

The state does not tax earned income but did tax dividend and interest income in 2020. 

‡As of 01/01/2022.

Estate and/or inheritance tax

Even if your estate falls within the federal estate tax exemption—$12.06 million for individuals and $24.12 million for married couples in 2022—there are 17 states plus the District of Columbia that may tax your estate, your inheritance, or both.8 This is especially pertinent to individuals who wish to pass the maximum amount to their heirs (as opposed to, say, charity). Of those states, 13 have an estate tax:

  • Connecticut (11.6% to 12% on estates above $9.1 million)
  • D.C. (11.2% to 16% on estates above $4.3 million)
  • Hawaii (10% to 20% on estates above $5.5 million)
  • Illinois (0.8% to 16% on estates above $4 million)
  • Maine (8% to 12% on estates above $6.01 million)
  • Maryland (0.8% to 16% on estates above $5 million)
  • Massachusetts (0.8% to 16% on estates above $1 million)
  • Minnesota (13% to 16% on estates above $3 million)
  • New York (3.06% to 16% on estates above $6.1 million)
  • Oregon (10% to 16% on estates above $1 million)
  • Rhode Island (0.8% to 16% on estates above $1.65 million)
  • Vermont (16% on estates above $5 million)
  • Washington (10% to 20% on estates above $2.2 million)

And six have an inheritance tax (Maryland has both):

  • Iowa (up to 9%)
  • Kentucky (up to16%)
  • Maryland (up to 10%)
  • Nebraska (up to 18%)
  • New Jersey (up to 16%)
  • Pennsylvania (up to 15%)  

What about trusts?

Trust terms aren't dependent on where you live. In fact, appointing a corporate trustee can allow you to locate your trust in a state significantly more advantageous than your own.

"There are three things to look at when considering in which state to locate your trust," says Austin Jarvis, director of trust, tax, and estate at the Schwab Center for Financial Research. "Does the state tax income, does it have favorable asset protection laws, and what are its statutes around dynasty trusts, which allow wealth to be passed down over several generations without incurring transfer taxes?"

For example, about half of U.S. states and Washington, D.C., allow dynasty trusts of varying lengths. But of the seven states that do not tax any personal income, only four—Alaska, Nevada, South Dakota, and Tennessee—have laws designed to protect such trusts against claims by creditors and former spouses.

Balancing act

Although states vary widely in their approach to taxes, it's hard to rank them from best to worst because it largely depends on your income, whether you own property, the size of your estate, where you want to live, and the benefits a state provides in exchange for its tax revenues.

For example, while retirees may be more concerned with Social Security and estate taxes, a young couple might care more about property taxes and proximity to family. "It comes down to your stage of life and which taxes matter most to you," Hayden says.

Indeed, it can be well worth consulting a certified public accountant or tax advisor specific to any state in which you hope to live or work. "They may know rules you haven't heard of and can potentially save you money in the long run," Hayden says, "which is the very essence of being tax savvy."

What about Social Security?

Whether your Social Security benefit is federally taxable depends on your combined income—which is the total of your adjusted gross income (AGI), half your Social Security benefit, and any nontaxable interest income (from tax-exempt municipal bonds, for example). You can do your own calculation using the IRS Interactive Tax Assistant.

Twelve states may also fully or partially tax your Social Security benefit, depending on your age, income, and other thresholds: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, Rhode Island, Utah, Vermont, and West Virginia.

1Tax Foundation, "Facts & Figures 2022: How Does Your State Compare?"

2Tax Policy Center, "State Individual Income Taxes, 2022." 

3Tax Foundation, "Taxes in Washington" and "Taxes in New Hampshire." 

4Lyle Daly, "2021 Capital Gains Tax Rates: Everything You Need to Know," fool.com, 07/14/2022.

5, 6Ibid, 1. 

7Tax Foundation, "State and Local Sales Tax Rates, Midyear 2022." 

8John Waggoner, "17 States With Estate or Inheritance Taxes," AARP.org, 06/21/2022.

 
Source: https://client.schwab.com/app/learn/#/story/taxation-nation-which-state-taxes-matter-to-you
 
Edited by RV_

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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2 hours ago, RV_ said:

I am from Connecticut originally BTW.

Went to submarine school there and several years later returned to home port there for 2 years. While not my favorite place, like everywhere I have been there were some good things too. Having grown up on a farm in a very rural area, with no cities of more than 50k for about 100 miles (a very long way in the 1950's) I still prefer the more rural areas, even though we have enjoyed visits to some major cities. 

Quality of life rankings are very much dependent upon who makes the list and what is important to them. It is very easy to find rankings of quality of life that put the states in entirely different orders. It is kind of like when a travel writer told a cowboy in WY that where he lives in NYC there are building large enough to house every person living in all of WY with room left over. The cowboy thought a moment, then replied, "That's true but you couldn't make us like it none!"

Edited by Kirk W

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

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2 hours ago, Kirk W said:

"That's true but you couldn't make us like it none!"

Great you won't be a neighbor by choice. And you are in no danger of me moving to your state because of climate for one consideration.

I posted the great tax info, because I had not seen it all in one place so well done before.

Please feel free to use the tax info.

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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It's definitely  worth considering if you are looking for a new landing pad.  It seems that in a nutshell, all the states need enough cash flow to provide the services we've come to expect.  But the way they get that funding varies considerably.  In the end, Joe Average will pay about the same, state to state, but from which pocket it comes varies.

One thing that struck me was the comparison of property tax, citing the $400k house in NY v. WV.  I would think the WV house would be a lot nicer, for the same amount of money.  As an example, our house might sell for $500-$600k near Cincinnati in this market, but would easily bring $2m near Denver or Ft. Collins.  That difference could not be made up in tax savings in the rest of my life time.

KW T-680, POPEMOBILE
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Lots of old motorcycles, Moto Guzzi Griso and Spyder F3 currently in the front row
Young enough to play in the dirt as a retired farmer.
contact me at rickeieio@yahoo.com

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Minnesota has a sales tax but they don't tax groceries or clothing or, I think, a few other things. I seem to remember text books not being taxed. So, if you rarely buy anything other than food and clothing you won't care about our sales tax. Unless you are buying that food in a restaurant, which is taxed, since that doesn't qualify as groceries. Also, if you rent instead of buying a house, you likely won't care about property tax. Kind of like buying insurance, which state has a good rate tax for you depends on what your own needs are.

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Former Rigs: Liesure Travel van, Winnebago View 24H, Winnebago Journey 34Y, Sportsmobile Sprinter conversion van

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10 hours ago, rickeieio said:

In the end, Joe Average will pay about the same, state to state, but from which pocket it comes varies.

That is only partially true because the scale and number of public services varies widely between states and the states with fewer public services tend to also have a lower total tax burden. ~  Tax Burden by State from WalletHub ~  Using tax burden makes significant changes to the order of the states. TurboTax website has a good article about taxes and tax rates, which I'll not post in total since not everyone wants to wade through the entire article. For those who are still working, the wage rates in the state of choice is also important. What Is the Average Hourly Rate Salary by State  For most of us here wages are less important since we typically live on retirement and investment funds. 

Choice of state can make a big difference but counties within the state typically do as well. Taxes are only part of what it costs one to live in any state or county. Curious how the different states compare when it comes to cost of living? 

Hawaii has a cost-of-living index of 181.79, indicating that it is 81.8% more expensive to live there than the national average. Mississippi ranks lowest on the index with an index value of 85.71 suggesting a 14.3% savings over the national average when compared to its productivity levels and standard of living.

A state like California or Hawaii has much higher rates than areas like Utah and Idaho. However, the cost of living varies by region within a state, too. Rural areas usually have a lower cost of living than suburban and urban areas. Even metro areas within the same state vary.

One example is Texas. Cities like Houston, Dallas, El Paso, San Antonio, Austin, Amarillo, and Beaumont are all proudly Texan, but the cost to live in each varies.

The more congested Northeast isn’t immune to the substantial cost of living shifts either.

New York has the New York City area, Long Island and Westchester County, which all have high costs. However, The Empire State also includes more affordable areas like Albany, Rochester, Utica and Buffalo.

So, don’t write off an entire state if it has an overall high cost of living. Instead, dig deeper into the numbers to gauge specific regional costs.

 

 

Good travelin !...............Kirk

Full-time 11+ years...... Now seasonal travelers.
Kirk & Pam's Great RV Adventure

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One has to research on how you earn your in income. CO has a state income tax and Texas does not. As seniors we are much less of consumers then when we where younger. Therefore, sales tax means less to us. Our income comes from SS and an IRA. I could not imagine our $124,800 annual income being subject to a 9% state income tax! Real estate taxes in Texas have a good homestead exemption and school taxes, by far the biggest of our real estate taxes, are caped at your 65th birthday. Its Texas for us! Florida also has no state income tax and generous exemptions for seniors but the cost of real estate is very high when compared to Texas.

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6 hours ago, Kirk W said:

So, don’t write off an entire state if it has an overall high cost of living. Instead, dig deeper into the numbers to gauge specific regional costs.

 

 

Quoting you Kirk from another thread. 😉😂

"Some of us can get pretty defensive.......   🥴"

Source:

 

 

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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We're looking at "statistics" - and as has been said before "statistics lie".
So don't put your eggs (or faith) all in one basket.

Notably the "Quality of Life" column I found interesting.  Northern states tend to rate higher on "Quality of Life" which, to me, suggests a sampling from younger people - people that are active and enjoy the challenges of weather.

Consider; a person with a low surface to mass ratio (fat) might enjoy cooler and drier weather.
While the slender and older person might (is it safe to say "will") enjoy warmer more humid climates.

Schwab's statistical chart should have stuck with raw tax numbers.

 

Lance-white-sands-500.jpg

~Rich

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That article missed way to many things to mean anything to me. While lower income tax and property tax is a start there are more things to consider.  For instance in Colorado all of the "FEES" implemented are taxing and the cost of housing along the front range is stifling. To me it is not worth reading.

 

 

 

Randy

2001 Volvo VNL 42 Cummins ISX Autoshift

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Guys, we are looking for a new place and state and it works for us as part of our research. It does not have to work for everyone.  As well once zeroed in on a state it is up to each to verify.

I can agree that the costs here are stifling. Our house almost doubled in value since we bought to move here in 2019. But prices are not why we are thinking about moving again. There is no perfect place. But we can look for the best compromise without drought or wildfire smoke polluting the air.

However all your perceptions positive and negative are valid! I am just sharing here. It is worth exactly what you paid for it.

😏🖖

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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On 2/19/2023 at 8:26 AM, justRich said:

We're looking at "statistics" - and as has been said before "statistics lie".
so don't put your eggs (or faith) all in one basket.

 

If I review a hand or power tool that doesn't mean I don't have a tool box full of tools. Same with research. I also found that tomatoes don't produce here:NNmY7WEl.jpg

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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The second listed link to SmartAsset.com has a wealth of information - but the information is segmented and spread over multiple sections.  Try this link instead for a start: https://smartasset.com/taxes/

A few years ago my research showed that it would cost me about $800. more in taxes to live in Arizona than Washington State.  The site does not provide sunny dry days compared to wet, gray soggy days - so there's that omission.

 

 

Lance-white-sands-500.jpg

~Rich

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3 hours ago, justRich said:

.....................................A few years ago my research showed that it would cost me about $800. more in taxes to live in Arizona than Washington State.  The site does not provide sunny dry days compared to wet, gray soggy days - so there's that omission.

Hmmm, I got a place outside of Tucson and it rains TWICE as much as it does in eastern Washington!!! 

My daughter was talking before she finally saw rain for the first time in her life.  We were waiting for the airport shuttle at the hotel in Seattle before flying to Hawaii.  I told her that rain is what God made for people that  have not built irrigation projects.

But it does bring up the point that you need to focus more than on a state level for choosing a place to live.  Out west, the micro-climates are very different.  Yuma and Flagstaff are very different communities both on weather and other factors.  My wife's comment was that she got tired of eastern egg hunts in the snow while living in Flagstaff.

Working for the Forest Service I always had my "list" of towns and cities that I would accept as a duty station.  Smaller towns and cities vary greatly in the quality of life for their residents so you had to chose carefully.

My screen was sunshine.  I was NOT going to live in western Oregon or Washington no matter the town. 

The second screen was a good community to live with family.  Good communities are much better places to live. 

I actually wrote up characteristics of good communities, but the simplest and easiest test was to simply visit the public library!!  Good communities, have good libraries.  When you think about it makes sense.  That as a criteria has never failed me.

Financial considerations are important and it made a huge difference living in Washington state simply because of my low consumptive lifestyle.  I would never move to Oregon for that reason, though, as a retiree the tax structure is different than for a working person.

When your looking for a good community to retire, check out the library.

Vladimr Steblina

Retired Forester...exploring the public lands.

usbackroads.blogspot.com

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Vlad, well put. I've been using everything available to get that look. Sometimes we have another to please and Linda does not want to move from our view out front of the front range, Pikes Peak, Cheyenne mountain and more. I like it too.

As well we have found we can get a house that sells in many places like Dayton OH, as an example, for half what this house would sell for here, and be a house that sells for 50% more to double here. But we would go from what we pay now just in property taxes. 

We have found the "best places to live/retire" lists useless. We both would love Alaska if not for the dark winters. I am not as subject to needing sun for my mood as my DW.

I posted these here before but I have found them useful for finding the least likely to have drought and another for least likely to have wildfires. We don't have them in town yet but according to the map our neighborhood is likely to not just be where inhaling the smoke from western states, but to burn as well.

I can drill down to my zip code with this one: https://www.washingtonpost.com/climate-environment/interactive/2022/wildfire-risk-map-us/?utm_source=pocket_saves

Here is United States Drought Conditions Map - February 14, 2023 which is also interactive: https://www.plantmaps.com/interactive-national-drought-conditions-map.php?utm_source=pocket_saves

After combing through the lists and what is in my original post here, and climate then despite having lived in a lot of states and countries North and South I still need to visit the place for a week or so and "feel" it and run around meeting people. And now I'm adding checking libraries and a few other things cultural and access wise. We like to live near a base but that is not a necessity. Cold is not a factor but humidity is. And Lynda loves her shopping so very rural with no hospitals or big box stores are out.

The search goes on, our way. I take no issue with whatever works for another. But as retirees we have too many choices. We lived here before 78-81 when I was teaching at the Academy.

Safe travels.

RV/Derek
http://www.rvroadie.com Email on the bottom of my website page.
Retired AF 1971-1998


When you see a worthy man, endeavor to emulate him. When you see an unworthy man, look inside yourself. - Confucius

 

“Those who can make you believe absurdities, can make you commit atrocities.” ... Voltaire

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