22 Replies Latest reply on Oct 4, 2009 12:42 PM by Lagarta

    States that don't tax seniors

    Lagarta

      I recently came across an article on this topic while in a doctor's waiting room.  Among some of the states that were mentioned that do not tax senior citizens were: Delaware, Ohio, Oregon

      I was thinking this might be one good way of choosing where to live upon retirement.  I'm in NJ now and Delaware's not that far and not unpleasant.  I've visited the Cinncinnati area of Ohio and didn't much like it.  Can anyone recommend Oregon?  Does the sun ever shine there? (just kidding)

      Any other states in this category I'm missing.  Lots of people move to Arizona, but I could never take the intense heat there.

      --CJ
        • Re: States that don't tax seniors
          PatD
          I know that Florida and Tennessee do not have state income taxes. All states(individuals actually) may have Federal taxes, and if Obama is elected, those will be going up(cap gains, income tax rates, etc)! Some states might have breaks on some taxes based on age, but I really doubt it. Oregon is an expensive state to live in, from what I read; on the plus side it is a very beautiful place to live.
            • Re: States that don't tax seniors
              Lagarta
              Thanks for your reply.  I could never see myself living in Florida.   Delaware might be a good choice....
              • Re: States that don't tax seniors
                thatsfantastic
                I live in Oregon near Portland and it is rather expensive here. There are not too many sunny days each year, either. Oregon does have a rather high state income tax (9%), but no sales tax. There are areas in the state that are sunnier and a little less expensive than Portland, but they aren't as green as the coastal portion of the state.
                  • Re: States that don't tax seniors
                    Lagarta
                    Thanks for your response.  It's important to me to live near a coastal area.  Just got back from a Cape Cod vacation; boy would i LOVE to retire there, but not sure how bad the winters might be, not to mention the cost of living is rather high.  Coastal Delaware seems to be a good choice; who knows if that will still be the case when I'm ready to retire, which will not be for awhile (i'm 50).
                  • Re: States that don't tax seniors
                    PatD said...



                    I know that Florida and Tennessee do not have state income taxes. All states(individuals actually) may have Federal taxes, and if Obama is elected, those will be going up(cap gains, income tax rates, etc)! Some states might have breaks on some taxes based on age, but I really doubt it. Oregon is an expensive state to live in, from what I read; on the plus side it is a very beautiful place to live.
                    Tax breaks for middle incomes will actually be twice as high with Obama.  McCain will cost you more.
                      • Re: States that don't tax seniors
                        Ursa

                        Don't be misled by the fact that Tennessee has no "income tax".  We have something called the Hall tax that taxes all investments outside the state.  If you are living off your investments it will bite you.  We also have a sales tax on EVERYTHING that is almost ten per cent when you count the city/county add-ons.  I don't think it will be too long before we actually have an income tax as the sales tax has been pushed about as far as it can go, and collections are down because of the recession.

                         

                        Otherwise, it is a great place to live if you stay out of Memphis and Nashville.

                      • Re: States that don't tax seniors
                        vernonia1
                        I live in Oregon....in a very small town (2,000) NW of Portland. Property tax is about $100 per$1,000....we do not have a sales tax....but DO have state income tax and Fed tax.  The town I live in offers brand new homes for $249,000. I love it here.....but utilities are rising so quickly...my widows benefits might not keep up??  Then what?? Not sure. :0)
                          • Re: States that don't tax seniors
                            muppie
                            Northern Wisconsin is the place to live.  It is gorgeous, can be remote, but homes can be had for $50K and up with land. There are plenty of lakes, it is forested in the deep green colors not found elsewhere and property taxes in the northwoods are low.  Wisconsin is a community property state and does have a State income tax. The cost of food is the same as it is in most places, Madison is only 150 miles away and has plenty of cultural attractions.  Bayfield is to the north and is another creative community.  Yes, it is cold in the winter time, but one can always go somewhere for the colder months - the Rio Grande Valley, Arizona, Florida or just enjoy skiing and hiking in the frozen north.
                              • Re: States that don't tax seniors
                                vernonia1
                                I have ex in laws on the UP in MI. Yes, homes are cheaper there...but...I do not ski and cannot afford to go somewhere warm in the Winter. Still need to work part time as my widows benefits do not quite cover all my needs. Am too young for Medicare and no employer health benefits. Even though I am healthy...pay $425 per month for health insurance. That is one reason I need to keep working :0(
                                  • Re: States that don't tax seniors
                                    muppie
                                    It seems we all need to keep on working if we can - we qualify for Medicare but still pay $325 each for BCBS wraparound policies plus RX policy if $30/month.  The thing that is killing us here in Chicago are property taxes - if you own you pay them and if you rent you pay them through your rent.  We have friends who bought a cheap condo in Florida and there is no State income tax down there and, from what I hear, lots of help for seniors.  I just don't like Florida - hotter than heck in the summer time.
                                      • Re: States that don't tax seniors
                                        vernonia1
                                        yup....and hurricanes too :0)
                                        • Re: States that don't tax seniors
                                          Cherylclark
                                          Wisconsin, where I was born, is much too cold!
                                          I'm thinking of moving to Portland area after market goes up enough to make selling my house in L A area worth while.  Glad to know houses are reasonable.  Want to be near the water, though.
                                            • Re: States that don't tax seniors
                                              muppie
                                              Hi, after living in California, and on the west coast, I imagine living in the frozen north is not such a great idea for you.  My son lives in Seattle with his California born wife and they love it out there.  Seattle is too expensive for me and with California's budget problems etc. it is too unstable for my tastes.  I don't really like Florida - I do love natural beauty though.

                                              Wisconsin has natural beauty in abundance and a lot of lakes - in fact, everywhere you turn there are woods and lakes - and it does get cold.  The other thing about Wisconsin is that the taxes are higher than elsewhere.  I live north of Chicago and the taxes here are awful so staying here is problematic.  We have a daughter in Vermont but leaving Chicago means I leave all my professional and personal contacts here.  It is always a conundrum: you have to make so many choices when you leave where you have lived for a long time. So you trade this for that.
                                        • Re: States that don't tax seniors
                                          howyou

                                          Thanks for the info on Wisconsin.  I live in a hot, humid, part of the U.S.  Summers are miserable.  Humidity so thick you could cut it with a knife.

                                          I have been very curious about Wisconsin and/or Minnesota.  I thrive in our late fall/winter weather, so I think heading North is for me.  Knowing there are affordable homes is even better news.  How's the healthcare up there???????????

                                           

                                            • Re: States that don't tax seniors
                                              muppie
                                              Hi,

                                              The health care in Wisconsin is excellent.  If you live in the Milwaukee area you have access to a number of hospitals with great doctors.  If you go farther north in central Wisconsin you come to the acclaimed Marshfield Clinic (it is compared to Mayo, is a teaching facility and I have been told by a Medical Director from the Rehabilitation Institute of Chicago that one of the best spine surgeons in the nation works there).

                                              In addition, there are various hospitals and other clinics throughout Wisconsin.  Of course Madison has a number of excellent hospitals and care facilities along with Wausau (more on the east side of Wisconsin).  The thing about northern Wisconsin is that people really care about you - whether in nursing facilities, home care, hospice or just ordinary visits with doctors, there is a different attitude toward patients.  It isn't the city sort of hurry up, don't have time for you, sort of stance found in other locations.

                                              The other thing about northern Wisconsin, of course, are the prices of homes and apartments.  Two bedroom apartments can be had for $400/month in most places (outside of Madison), homes with land can be had for $50K (sometimes less depending on the condition of the place) with acreage.  The summers are only hot and humid for maybe a few days here and there, the fall is gorgeous with beautiful fall colors, the spring is long and flowers are planted everywhere, the winters can be on the long side but beautiful white snow that stays white because of the lack of pollution.

                                              Our family has had a house in north central Wisconsin for 55 years.  There is little traffic, you do have to drive for cultural stimulation but it is affordable.  Hope this helps.
                                                • Re: States that don't tax seniors
                                                  howyou

                                                  Wow.  Great information. 

                                                  I've always thought about a vacation in WIsconsin, now is a must do--maybe even looking for housing.

                                                  Thanks!

                                                    • Re: States that don't tax seniors
                                                      muppie
                                                      You never know what you will find and when someone else has lived in that area I find it helps a lot.  For vacationing I would do so many places depending on what you would like: Millwaukee (great museums, places to eat, fun renovated Third Ward (near a waterway) and much more; Madison (Overture Center, museums, two lakes, great food and shopping, University of Wisconsin doings and much more), go far north up to Bayfield and you find an artists' colony, Marshfield has lakes in all directions, the Marshfield Clinic etc., go to the east and there is Appleton with a fall book festival, to the north of that is Sheboygan with an annual fly-in festival of planes.  Book festivals, fishing, local festivals, parades, carnivals (Wisconsin Dells for water slide and kitch fun - Baraboo for circus stuff) - lots to do in Wisconsin - gee I should work for the tourist board 8)!
                                          • Re: States that don't tax seniors
                                            jkom51

                                            If you haven't checked out the thread I posted on this forum labeled "Tax friendly states for retirement", you should do so. It shows clearly that every state taxes very differently, and what you gain in no-income-tax states you may lose in high sales and property taxes. There is more to picking a place to live than a single tax issue, I'm afraid.

                                            It's up to you to decide what your priorities are as you age. Do you want good local services that will help you age in place, or a variety of senior communities to choose from? Do you need to be nearby friends or family? Will it bother you to change everything from your auto mechanic to your bank and every doctor?  Do you like the changing seasons, or do you want more clement weather? Are you into outdoor sports, or some other type of physical hobby where you want to indulge (golf, tennis, etc.)? Can you live in areas that have hilly neighborhoods, or do you want flatlands for easy walking?

                                            People live so long now that perhaps we should look at retirement as a series of stages, just as we look at our younger years in levels (teenage, college, young adult, middle-age). It's a great mistake to pick an area based on how you feel at age 55 or 60, without considering how you will change physically as you get into your 70's and 80's. I say this because my 81-yr old MIL lives with us, and it's clear she has never considered these things, so she feels overwhelmed when trying to make decisions about life. It's as if she never really thought about what it would be like for her to get elderly, even though I know she lived in a multi-generational household for decades.