Will you retire in Texas?

[Trainwreck20]

Originally Posted by NewMexicoCowboy

Taxes are a huge deal for me. Low taxes is one of the biggest criteria for me. I will possibly only live in Texas after I fully retire if my property taxes are manageable. I will likely move out of Texas if the property taxes are too high for me and i am not able to get the parsonage exemption for my home. I will likely stay in Texas if my property taxes are low enough for me.

Hence, the 'most people' part .

But if you just look at property taxes and move to a low property tax state, you may end up paying more 'other' taxes.

Tennessee is an option many people look at - no income tax, low property tax; however, sales tax averages 9.55% and can be as high a 9.75%. That could be 1.5% points higher than TX and food is taxed (basic groceries at 4% and prepared food at local rate up to 9.75%).

Gas is taxed 6 cents higher than TX (26 instead of 20), although the cost per gallon is almost the same otherwise. Alcohol is taxes significantly more in TN besides the 15% tax added if you buy a prepared drink.

TN does have property tax freeze for 65+ but only if you are low income, which is set by each county/municipality. It looks like it is household income based and varies from ~$35k to $50K and can be 'lost' if your income exceeds that value at some point in the future.

So, if you are not below their low-income level, you property taxes will be lower than TX but may slowly close the gap over time compared to Texas and the school-tax freeze. Or maybe not. Very location/house specific, like always. Also, if you are bringing in a higher income and spending it, you will pay noticeably more in sales tax. Even at lower income, the addition of taxable food is a bit annoying. Monthly grocery cost in TN is ~20% higher than Texas, but I assume that already includes the taxes? Not sure.

Anyway, if you expect to bring in <$35k a year, then TN is a likely a good possibility. On the other hand, if you are looking at >$100k or something, then you might end up paying a lot more in taxes/COL.

[NewMexicoCowboy]

Originally Posted by Trainwreck20

Hence, the 'most people' part .

But if you just look at property taxes and move to a low property tax state, you may end up paying more 'other' taxes.

Tennessee is an option many people look at - no income tax, low property tax; however, sales tax averages 9.55% and can be as high a 9.75%. That could be 1.5% points higher than TX and food is taxed (basic groceries at 4% and prepared food at local rate up to 9.75%).

Gas is taxed 6 cents higher than TX (26 instead of 20), although the cost per gallon is almost the same otherwise. Alcohol is taxes significantly more in TN besides the 15% tax added if you buy a prepared drink.

TN does have property tax freeze for 65+ but only if you are low income, which is set by each county/municipality. It looks like it is household income based and varies from ~$35k to $50K and can be 'lost' if your income exceeds that value at some point in the future.

So, if you are not below their low-income level, you property taxes will be lower than TX but may slowly close the gap over time compared to Texas and the school-tax freeze. Or maybe not. Very location/house specific, like always. Also, if you are bringing in a higher income and spending it, you will pay noticeably more in sales tax. Even at lower income, the addition of taxable food is a bit annoying. Monthly grocery cost in TN is ~20% higher than Texas, but I assume that already includes the taxes? Not sure.

Anyway, if you expect to bring in <$35k a year, then TN is a likely a good possibility. On the other hand, if you are looking at >$100k or something, then you might end up paying a lot more in taxes/COL.

Oh okay thanks for the clarification. I am easily going to make 100,000 to 120,000 a year in today's dollars when i am retired so maybe Texas taxes will be better for me than somewhere like Arizona New Mexico Nevada Utah Oklahoma and Arkansas.

[NewMexicoCowboy]

I may retire in Florida

[NOLA2SGF]

Texas is a terrific state. I lived in College Station from 1984-1996, and loved both Texas and the Texans I knew there. Salt of the Earth. Eventually I moved to Louisiana because that's where the job was.

When we retired (back in 2009), we thought about other states but ultimately decided to stay in Louisiana. Louisiana is a pretty fine state, too.

I don't like every state I've lived in, though! California comes to mind. A lot of people love California but I'm more of a Texas/Louisiana type gal.

[BGS91762]

I’ll be staying in So Cal as my property taxes are $3500 on my $800k house. Several friends moved to Texas and any savings have disappeared especially since they had owned their homes for years in CA. All thanks to Prop. 13.

[XChucoresident]

I already retired...after retiring from teaching at DISD...after 34 yrs...I hung up my hat..went back to my birthplace of ELP, but after leaving Dallas..I sometimes wonder if I made the right choice..but I think so..tired of seeing so many transplants moving there..my house here is cheaper, but less to see and do..I am a Diehard Native born Texan...and I do not see myself living anywhere else..I