5 State RETIREMENT Tax Considerations You're Likely Not Considering... (State Taxes Explained)

In today's video we take a make comprehensive look at the state taxes you may owe in retirement and how to find the most tax-friendly state for YOUR retirement.

Timestamps:
0:00 It's Not Just About State Income Taxes...
1:49 State Tax Consideration #1
3:02 State Tax Consideration #2
5:12 State Tax Consideration #3
6:14 State Tax Consideration #4
8:29 State Tax Consideration #5
10:21 Choosing Your Ideal Retirement Location

#retirementincomeplanning #retirementplanning
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Always remember, "You Don't Need More Money; You Need a Better Plan"

[sirheisenberg]

I've lived in America and Canada. Paid about the same in taxes but get way more for my taxes in Canada. Most Americans hate the government (hate giving them their money even more) because they've never experienced good governance.

[Vivianlaure]

I am at the beginning of my "investment journey", planning to put 85K into dividend stocks so that I will be making up to 30% per year in dividend returns. Any advice?

[dlg]

This is such an important topic. I have family in FL and TX and I tell people all the time not to fall for the no income tax narrative. Both of these states have no income tax and my relatives always complain about their absurdly high property tax, sales tax and other various fees. You have to look at the total tax (and fee) picture, not just income tax.

[PBG]

Huge lesson we learned in FL. Look at the whole picture. Car insurance, homeowners insurance, property tax and skyrocketing utilities may cancel out the tax advantage.

[steveramsey]

One tax I never see anyone discuss is “personal property tax” which can be a surprise when licensing vehicles and campers and/boats

[jwilder]

Commenters seem to want a personally-tailored video and an hour-long consultation. I think you did a damn good job for 12 minutes!

[tomshahriari]

Bravo. You are the first person to correctly analyze tax burden.

[meredithalbion]

I laughed out loud when you described work as a "suboptimal hobby". That's exactly right! Thanks for helping me reframe the next few years of the grind.

[RetrieverTrainingAlone]

We live in Alaska where there is no state income tax, no state sales tax. The first $200, 000 of property tax assessed is waived for seniors over 65 years old. Plus an annual Permanent Fund Dividend check from state oil investments for every state resident regardless of age.

[JBoya]

Nice video. Great to see someone talk about all of the little things that eat at your retirement budget. I might add the cost of maintenance, insurance, and utilities of a home or condo. Things like paying for snow cleanup, hurricane insurance, etc. should be factored into an annual budget.

[stephenharper]

A good video for rich people. Most retirees have less than 50K/yr income. Most states ignore low income retirees in taxation. Live someplace beautiful, where family, friends, and you look forward to the day.

[toddinnv]

Food is taxed in TN. This was something that I figured out after I moved here from Nevada which does not tax food. Great information thank you.

[davidbergeron]

Seems like a spreadsheet could be made that allows one to enter all forms of income, real estate, and spending then ranks the states highest to lowest in total taxes.

[kathryncashner]

Some things get even more complicated. For example, KY did not change their sales tax rate, but about 2 years ago they expanded it so that now services are subject to sales tax--so things like getting your hair cut or lawn mowed are now taxed.

[danmcmartin]

During my research, they tend to get you one way or another. If it's not income tax, it's vehicle registration and if it's not that, it's property tax. The differences aren't as big as they might seem, not to mention cost of living, median home costs, etc.

[CCB]

You have to look at property tax by jurisdiction, not by state. Texas may have low property taxes overall, but the city of Austin is very high. So you have to look at the exact place you want to live. Same goes for Maryland. Property tax rates in Chevy Chase are very low, but Germantown is much higher-same county, but different jurisdiction.

[toddwmac]

Enjoyed your vid. As my econ prof said decades ago, "no such thing as a free lunch so you better look at the back of the menu". Thx

[icecold]

Great video I been saying that for years. Once you figure all the tax burden macros it’s very clear California is the winner plus the weather

[UrquidezFamily]

We retired to Texas because everyone said it was the best place for money. We lasted 5 years. We realized unless you were born in Texas or in the South, the social dynamics didn't match us at all. The amount of property taxes we were paying were really high and they kept going up. The schools and healthcare were not too great either. The weather is what ultimately made us move to California. Nobody talks about the heat, humidity, pollen, and bugs. It was just too much for us.

We returned home to California and live very happily in Napa. Sure, it is more expensive, but not that much more expensive than Texas, and the return for what we get is incredible. The weather is fantastic, excellent schools and healthcare, so much to do here. There is something to the people here, so diverse and always trying to get better. When we were in Texas I swear it felt like everyone wanted to live like it was 1985. I just didn't get it.

If you can afford a place, then I would move to where you are most happy. For us, it was California.

[ShenandoahShelty]

Thank you. When factoring your considerations into my pending move to a low tax state (TX). I found I'll be paying more taxes than I thought I would, but it's also not as bleak as the example.