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Taxing Retirees: Some States Will Give You a Break (And Some Won't)

foreign retirment

Contract Specialist
Treasury
Mon Feb 11, 2008 9:46 AM

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Is there any information regarding the taxation of retirees that plan on living in a foreign country?

Alaska

LER Manager
VA
Mon Feb 11, 2008 10:04 AM

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As stated Alaska does not have any State income tax and only a hand full of small towns have a local sales tax, usally 2% or less. There is no personal property tax.

In the Anchorage area property taxes are high, that is why many live outside of Anchorage.

Only draw back? Tok, Alaska was -70 last week Anchoarge arounf -10. We are gaining more daylight every day!

TAXING RETIREMENT DOLLARS

SECRETARY
SECURITIES AND EXCHANGE COMMISSION
Mon Feb 11, 2008 10:12 AM

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where does georgia fall in these states?

Other considerations

EE
Spawar
Mon Feb 11, 2008 10:31 AM

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Yeah, but you also need to consider other factors. For example, utility bills. Alabama and Florida may be tax friendly, but that could be more than offset by the cost of air conditioning. My relatives were paying $600 per summer month just for AC. And that was 20 years ago. New Hampshire may also be tax friendly, but I wonder how much my tax savings would be offset by the heating bills in the winter. Best places to be as far as utility costs go would be on the coast where the ocean acts as big heat sink that moderate temperatures.

Re: Other considerations

Gen Engr
DoD
Mon Feb 11, 2008 5:58 PM
Actually, my electricity bills average $103 per month for the entire year (includes a few other utility charges also). The key to cool in Alabama is a well designed house. If your house is not well insulated, then you are asking for high Utility bills.
Of course, there is the annoyance from the red necks and inbred crackers. But they are usually not able to afford to irritate you too much or for too long. If they do, just buy a can of beer and throw it across the pond, they'll swim to fetch and might go to the far side bank to drink it... ;-P

Taxing Retirees-2/11/08

Supvy Prog. Analyst
FDA- HHS
Mon Feb 11, 2008 10:31 AM

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This is the kind of helpful information that Feds like me need to consider. Great information to think about. Thanks so much and give us more like it.

Re: Taxing Retirees-2/11/08

Database Administrator
IRS
Mon Feb 11, 2008 3:36 PM
Mississippi is often overlooked as an excellent retirement location for Fed retirees as there is no state income tax on Fed pensions. The weather is fairly mild in the winter and not as hot as Florida in summer. There is a Homestead Act that after one year you can apply for that signifcantly lowers your property taxes. Also, when you reach 65, your property taxes fall to about 10-15 percent of what they originally were. The sales tax is resonable about 7%. Home prices are not out of site like they are in so many retirement locations. So with the climate, lower property, reasonable houseing market and no income taxes, who could wish for more. Desoto county that I live in is the fastest growing county in Mississippi.

State Taxes

Retired
BLM
Mon Feb 11, 2008 10:45 AM

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You forgot to mention Wyoming--there's no state income tax for ANYONE there!

Wyoming

Retired
BLM
Mon Feb 11, 2008 10:47 AM

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Oops--you did mention Wyoming in one of the paragraphs.

Senior moment!

Re: Wyoming

Program Analyst
VA
Tue Feb 12, 2008 10:23 AM
Montana doesn't have sales tax ... housing has gone up apreciably, but it is still the "last best place."
Total Comments: 37
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