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Zeus · 13-02-2007, 00:16

I have seen a few threads related to income, sales, and property taxes. I stumbled upon this site: The best and worst states for taxes - MSN Money
which may help cruisers or would be cruisers after retirement. Take a look and give your feedback.

Zeus.

hellosailor · 13-02-2007, 12:21

Take it with a grain of salt. Among other things they don't include county taxes, and county/city property, income, and sales taxes can double the state rate.

They've also left out exclusions, i.e. IIRC Vermont charges no property tax if your income is under $80,000 per year.

I also don't see a breakout for personal property tax, which can be significant in some states.

The grass is always greener over the cesspool.<G>

Morgan Paul · 13-02-2007, 12:40

My property tax(house and land) here in Long Island New York is 11,000.00. It sucks.

hellosailor · 13-02-2007, 12:45

Paul, that's something else you and MSN haven't mentioned. If you live on LI and you pay $11k in property taxes, you probably pay ANOTHER $11k in school taxes. Which are separate from and additional to property taxes.

Right?

capt lar · 13-02-2007, 12:58

Typically, if you head to a state with no income tax, you will get killed on property tax. Property tax really varies from town to town so, again, it depends. Some income, such as some pensions, are not taxed if you reside in the state that pays the pension. Everyone's situation is different. For our situation we may 1) buy a retirement home in Maine (most heavily taxed state in the nation) because houses are cheap. 2) Stay in Mass where the pension is excluded from income tax (that's 4K that stays in the pocket) but probably sell real estate and rent (if you do the math on all the costs and deductions, you are counting on 5% appreciation to make the home ownership a better deal) or 3) move to Florida or New Hampshire to avoid income tax or 4) move to California for perfect weather, great sailing, cheap food and just bitch at all the taxes they take (probably rent). Next week we revisit Hawaii to do the comparison. I do not think it will make the finals (marina problems, not the best sailing, high cost of living). We are close but not there yet and the choice really would not be made until we are sure we want to walk away from an established business and a 30 year career. Once you go - there is no coming back.

Morgan Paul · 13-02-2007, 13:01

Hello hellosailer,
No, the 11 grand is what they call property here. It includes the school tax. If you break it down about 8 grand goes to the public school teachers(school tax) the rest 3 grand goes for local goverment(police, fire, library, garbage pickup, roads, ect.).

Paul

capt lar · 13-02-2007, 13:06

Paul - If you don't mind saying - what's the valuation on the property ?

Morgan Paul · 13-02-2007, 13:08

I have a 3 bedroom ranch. About 400,000.00

capt lar · 13-02-2007, 13:10

The reason I ask is to illustrate how values vary. In my town a house assessed at 600K would pay about 6K in RETax. The town two doors over, similar in schools, income, etc. would tax that 600K house @ 9K.