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Protecting Your Retirement Income By Paying Lower Taxes

I Come From Alabama

Financial Analy$t $upervisor
Defen$e Agency
Wed Feb 13, 2008 8:56 AM

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I came from Alabama and moved from Northern Virginia. Alabama has some of the lowest income and property tax rates and the secondary educational institutions and roads to prove it. My son was an A-B student in an Alabama private middle school and was a C-B student in a Northern Virginia public school. Also, some of the highest consumption (sales) tax rates are in Alabama and applied to food and medicine.

Re: I Come From Alabama

pers spec
nasa
Wed Feb 13, 2008 10:05 AM
Like most states, different cities are much different. Huntsville is an excellent place to live. I moved there from Arlington a number of years ago. Our housing prices dropped by more than 50%; taxes went down at least that much and the schools were excellent. There are also a number of excellent private schools for those that may prefer a different perspective or a school that focuses on college preparation. I have never regretted the decision to leave the DC area.

Protecting Your Retirement Income

Aerospace Engineer, retired
Defense Contract Management Agency [DCMA]
Wed Feb 13, 2008 9:24 AM

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My property taxes in Atlanta, Georgia [Cobb county]were $3300.00 per year. In CY 2005 I moved to Alabama where I now pay approximately $500.00 per year in property taxes. Your article was very accurate about some states that are very beneficial to retire to.

Thak you,
Henry R. Hagel
Aerospace Engineer, retired

Re: Protecting Your Retirement Income

Gen Engr
DoD
Wed Feb 13, 2008 3:12 PM
Please heed the advice in the article to check and see what is the most current status of the tax rates. While Huntsville is quite preferable to the tax rates in Northern Virginia or Maryland, Huntsville and the City of Madison (just to the west side of Huntsville) are having to impose new taxes just to build the infrastructure to accommodate the moves. WHat's worse, is that the Huntsville and Madison City "leaders" are doing it the worst possible ways (i.e, they have not learned their lesson and are not doing their homework on how to do the best job for the citizens they are supposed to represent. The recent Bond issue in City of Madison failed because the local leaders don't understand that they MUST commit to using those taxes for what's needed rather than being allowed to decide to spend as they want. N. VA leaders had to learn that lesson long ago ... city services there are matured and well managed even if expensive. AL has to learn that lesson (may fail a few times 1st).

State tax on TSP

Electronics Engineer
NASA
Wed Feb 13, 2008 9:28 AM

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Has anyone found a comparison on how different states tax TSP annuities and distributions? This is part of the decision on where to retire to.

What Happened to ALASKA

ATC Specialist
FAA
Wed Feb 13, 2008 9:55 AM

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My understanding is that Alaska has no state income tax.
Some Burroughs do have differing tax assessments. But the state has no income tax. Why was this left off the list of states that have no state income taxes?

Flori-DUH

Ex-Veteran
DoD
Wed Feb 13, 2008 9:58 AM

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Other factors to consider: insurance rates, property taxes, sales taxes, food prices, crime rates.

I moved from Alabam-UH (which has state income taxes) to FL (which does not) and my cost of living more than DOUBLED! And not all costs were due to TAXES. My home and automobile insurance TRIPLED; I thought that buying an existing home would save me money but no, the FL housing/finance industry & its lobbyists made sure that buyers pay a huge price; I found out the hard way that PROPERTY TAXES in FL were QUADRUPLE that of AL. And, in the part of FL where I moved to has a much larger crime & crowding problem than AL. The school systems are only slightly better in FL than AL.

And finally, anyone thinking FL is such a great retirement villa, consider the HURRICANE situation - damage & potential, constant worry, fighting with insurance companies, etc., is NOT FUN... When my kids finally move out of the house & out of the school system, I'm heading back to 'Bama to retire!

Re: Flori-DUH

Mgmt. Analyst
DoN
Wed Feb 13, 2008 12:56 PM
Don't know when you moved here, but all the costs you mentioned went up because of hurricanes. Taxes are another matter. I'm originally from Bama and believe me, my taxes overall, are way lower than when I lived in Bama. The key is to research before you move so that you don't end up holding the nasty end of the stick.

Re: Flori-DUH

Ex-Veteran
DoD
Thu Feb 14, 2008 9:27 AM
To Mgmt. Analyst, DoN

I moved here in the mid-1980s, when there were FEWER hurricanes and WELL BEFORE the "big ones" (Erin, Opal, Dennis, et al) made insurance rates go up astronomically.

I moved here because FL had no "income taxes" (like GA or AL). However, the "hidden taxes" in Florida far out-weigh any lack of formal income taxes.

Also, if one looks at federal and post-federal employment, the situation is also not good. Where a general engineer most other locations would be a GS-12/13/14, FL fed employees are notoriously under-graded under the guise that people will TAKE A PAY CUT to move/live/work in FL. Whether this is true or not, depends on the worker. But if one looks at the formal registers of local salaries, general wages are also low for non-federal employees of ALL career fields.

When you look at "the big picture", Florid-DUH sucks. Unless of course one is a beach bum, sun worshiper, sailor, or likes HOT, HUMID, BUG-INFESTED environs...

:-)

Property taxes

International Advisor in Forestry
USDA Forest Service
Wed Feb 13, 2008 9:58 AM

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Do any states give retire people a break on property taxes?

Re: Property taxes

Mr.
US Army
Wed Feb 13, 2008 6:40 PM
If you are 65 and over the state exempts the first $150,000 of assessed valuation from property tax. Some locals exempt veterans even more, plus the state gives each resident 9including children) a dividend that varies accordding to the 5 year average of the states permanent fund. Too bad the winters are toooooooo long and cold. I'm leaving the first chance I get.

Re: Property taxes

Geologist
EPA
Fri May 23, 2008 9:58 AM
Texas will freeze the 'tax rates' for those over 65, but the market value of the property will continue to increase your tax payments. The state also offers homestead exemptions for primary residences (15% of market value) and tax rate freezes for the disabled.

Why people leave North Dakota

Area Specialist
USDA
Wed Feb 13, 2008 10:12 AM

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The reason our young people leave North Dakota is not because of the tax situation, we are about the same as the surrounding states or the climate, it is because North Dakota is a low wage state. Except for the large cities in the state, most of the residents are being paid minmum wage and then working two or three jobs to make ends meet. North Dakota ranks as one of the highest states were people work more than one job. When researcher talk to former North Dakotan about coming back to the state that say they would like to but they can not make a living here.

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