Most and least tax friendly states

I live in New York and since I retired I pay very little in taxes other than the 8% sales tax on many of the things that I buy.

Last year my state income tax was $391.00.

It really depends on how you organize your finances and how you choose to live.
 
Aunt Bea said:
In New York, we have a program to reduce property taxes for senior citizens and the STAR program that helps to reduce school taxes for seniors. In many cases, it reduces the property tax by as much as 50%.
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I wish we had that here! Our property taxes are not as hefty as many states, but nevertheless they are a burden. School taxes make up a large portion of the property taxes and they keep going up.
 
According to the linked map I live in a Not Tax-Friendly state. But since I moved from California I have been enjoying the lower real estate taxes, until this year.

Imagine my surprise when last spring I received my real estate tax assessment letter and found that the county has raised my assessed property market value by 121%. So I filed an appeal along with a whole host of other county residents, some of whom had had increases exceeding 500%. So the county legislature has been kicking this hot potato around ever since and, or course, has come up with no workable solution. Unfortunately this means that I will probably have to pay mush higher real estate taxes this year since my individual hearing probably won' happen until some time in 2020.

I just hope that, when I get my day in court, that justice will prevail. If only I could just sell my house for the property value the county has assigned it I would do it in a heart beat!
 
Is this REALLY an issue for people considering retirement? After reading so many of these and years of posts - seems as if people will move where they want to be, no matter what. Some want to be near family, others for the climate or medical care. I don't think I have ever seen anyone actually move due to taxes and you will pay them no matter what. We lived in TN with no income tax but sales tax (and auto insurance) was very high! Real estate tax was low but we got basically nothing for it anyway. Now we live in Maine. More "tax" but happier than we've ever been! So.... not sure the reason for these particular lists.
 
Myquest55 said:
Is this REALLY an issue for people considering retirement? After reading so many of these and years of posts - seems as if people will move where they want to be, no matter what. Some want to be near family, others for the climate or medical care. I don't think I have ever seen anyone actually move due to taxes and you will pay them no matter what. We lived in TN with no income tax but sales tax (and auto insurance) was very high! Real estate tax was low but we got basically nothing for it anyway. Now we live in Maine. More "tax" but happier than we've ever been! So.... not sure the reason for these particular lists.
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Ditto....We are happy where we live....
 
Aunt Bea said:
In New York, we have a program to reduce property taxes for senior citizens and the STAR program that helps to reduce school taxes for seniors. In many cases, it reduces the property tax by as much as 50%.
Click to expand...
We have something like that here in AZ, you have to reapply every 3 years and make less than $36,000 individual or $45,000 couple

''The Senior Property Valuation Protection Program is administered through county assessor offices to roughly 22,000 seniors throughout the state. This program "freezes" the home values on which seniors are taxed, shielding seniors from large increases in tax bills if their home values rise quickly, such as during a housing boom. Seniors must re-apply every three years to maintain the financial protections. The program does not affect the resale price of seniors' homes. ''
 
I think the wealthy over 65 should not get any tax breaks. Other than that, I agree about property tax reduction for over 65.
 
Another feature of retirement planning
1. Bought 3 bedroom rancher for convenience no stairs & easy to clean windows.
2. Military discount on property taxes so the small home has less property tax to begin with.
3. No personal taxes on income from any source
4. No school taxes
5. 8.5% sales tax = doable
6. No inheritance tax so sons will avoid that.
 
Nevada has low property tax and no state income tax. Some states like New Jersey have such high property taxes that people can’t afford to live there once they retire if they own property.
 
Catlady said:
We have something like that here in AZ, you have to reapply every 3 years and make less than $36,000 individual or $45,000 couple

''The Senior Property Valuation Protection Program is administered through county assessor offices to roughly 22,000 seniors throughout the state. This program "freezes" the home values on which seniors are taxed, shielding seniors from large increases in tax bills if their home values rise quickly, such as during a housing boom. Seniors must re-apply every three years to maintain the financial protections. The program does not affect the resale price of seniors' homes. ''
Click to expand...
It's called homesteading and we've had it in PA and in AZ. However....AZ taxes pensions but PA does not.
 
New Jersey is on the list as one of the least tax friendly states, but not for me.
~The property taxes are high here, but as a co-op owner, I pay a small percent of what it would be if I owned a home.

~The sales tax here is 6.625% but only 3% in urban enterprise zones.

~Food is not taxed unless it's prepared food from a supermarket (eg: rotisserie chicken) or restaurant food.

~N.J. does not tax social security benefits

~As a state retiree, $15,000 of my pension is non taxable, so I wind up not paying state income tax at all, but I still file because
I get $50 Homesteaders rebate, plus now the state has the ANCHOR program which can refund up to $1,250 to homeowners
and tenants. One must have filed taxes to qualify. I just put in an application a couple of weeks ago for the first time. They were using the 2020 tax returns.
 
Aunt Bea said:
In New York, we have a program to reduce property taxes for senior citizens and the STAR program that helps to reduce school taxes for seniors. In many cases, it reduces the property tax by as much as 50%.
Click to expand...
Is it for all senior citizens or must the senior also have an income below certain limits?
 
Aunt Bea said:
I live in New York and since I retired I pay very little in taxes other than the 8% sales tax on many of the things that I buy.

Last year my state income tax was $391.00.

It really depends on how you organize your finances and how you choose to live.
Click to expand...
curious how you can live in NY State and be near Mt Pilot or Pilot Mt. Sounds more like a place in North Carolina.
 

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