Here's a map depicting the rates of property taxes across the United States. If you're in the States, and considering relocating for retirement or another reason, this is a helpful resource. http://dailysignal.com/2015/08/19/h...podcMTcJnM7/YDBceEJhqyQJxPr3NLtQN191pRhLiDA==
Our property taxes are low but we have state income taxes plus state and local sales taxes making our total tax burden quite high.
Took the words right out of my mouth Sheldon. You really have to consider all taxes of a state to get an idea of how it will effect you in your senior years. The tax rates in NY are just awful, I recall I read a report that said in overall taxation the average New Yorker has is close to 65% of each dollar of their income, which gets gobbled by some sort of tax. I believe that. We have Federal, State, Village, and county tax all paid on property. Then you have income tax, sales tax, and gas excise taxes on just about everything else. It all adds up. Sure some of it is in direct proportion to what you buy, earn, have or own, but isn't that the point? What fun is retirement if all that you have done just goes to feed taxation?
We also have a State income tax on earned income. My property taxes the past four years has been a little over eight hundred dollars annually. Between taxes and insurance it's hard to keep you head above water.
Don't forget about the taxes and fees on utilities, vehicle registration, etc. It seems we're taxed coming and going, and even after going, when you take into consideration the death tax. I'd like to see a comparison between the average taxes paid by an American, versus someone in a socialist country.
Generally, states without an income tax, such as Texas, will make it up through higher fees or higher taxes on other items. One of the things that Maine's current governor is trying to do is to lower the income tax, but he wants to do so by taxing all sorts of things that are not currently taxed, such as lawn mowing and garage sales, and increasing pretty much every other tax across the board. Plus, he would eliminate funds that are currently given by the state to the municipalities, which they would have to make up by raising property taxes. Maine has one of the largest percentage of seniors of any other state and, for us, that is a very bad proposition. Income taxes are not our concern, but we would then have to pay higher property taxes, and on everything that we buy. Then another governor will come along and raise the income taxes back up, I'm sure. It is a terrible idea.
Property and sales taxes are the worst kind of taxes for retired people. The worst kind for low income people too.
Do y'all feel that you're getting your money's worth with all of the taxes you pay? I certainly don't.
I dislike it when articles commingle terms...or maybe out my way things are different. In Virginia we have Real Estate Taxes (tax on land & structures), and we have Property Taxes (tax on "things with wheels" and on business capital equipment.) These are managed at the local (county & incorporated city/town) level. I lived in an incorporated town that had its own infrastructure (police, fire, road maintenance) and that levied its own Real Estate taxes, so I was given a credit against the taxes I paid to the county. Real Estate tax rates are adjusted annually (meaning that Value is not the driver of your tax liability.) Property tax rates tend to be long-term stable, and your actual taxes tend to decline year-over-year as the property depreciates. I was just on Next Door reading complaints by folks who are receiving new, higher tax assessments on their vehicles because of what's happening with the Blue Book Value of used cars these days (they are skyrocketing.) A Mazda salesman told me that the average used car value these days was over $30,000. So in this era of record inflation, some of us are having to dig deeper to pay The Man for the privilege of owning transportation (or boats, or motor homes, or utility trailers.) The political beauty of this tax increase is that no politician has to cast a vote...the tax bill floats with assessed value.
The map at the beginning of this thread is wrong about the taxes in Alaska. Anchorage (and Fairbanks, I think) have very high property taxes (real estate) and Anchorage also has "private property taxes" but most of the state does not. There are areas of the states with no taxes whatever, and other areas with no property tax, only sales tax. My area has fairly low property tax and we get the first $180,000 in valuation removed form taxation from our primary residence...and we get one vehicle registration for free per person over 65 years. We also get free fishing and hunting licenses over 60 years for everyone who is a permanent resident of the state. Our area has no sales tax, but much of our shopping is done in areas that DO have a sales tax--2.5%. If you live in Wasilla, you gat a property tax reduction based on what the sales tax revenues are.
Step 1: How much money do we require? Step 2: What is the fairest way least damaging to politicians to get it? In Virginia, when you're 65 your annual fishing license costs $9 rather than $23. I get no break on any taxes. In a sense, with our nation's (and the world's demographics), it would be a huge burden shifted.
I think most states have varied tax rates within the state, depending on the county/city/area. Harris County TX has relatively high property taxes, but we live in an unincorporated area of the county and pay no city taxes. Also get the senior exemption for a percentage discount but I'm not sure how much that is.
The county just south of me wants as few businesses in it as possible. Their real estate taxes are horrendous compared to mine, because residents are just about the sole source of revenue. I have no idea what they do to the grocery stores and service providers (doctors, barbers, etc.) The idiots in charge built an unneeded new high school to the tun of $135,000,000 and then realized they could not open it because they did not budget for operating costs. Special Assessment time!!! I don't believe we have a senior exemption for real estate in my county, but since I have over 50 acres I qualified for a big discount by promising to not develop it. If I change my mind, there's a recapture on the unpaid amounts plus some penalty. I left it be when I was working but (successfully) applied for it when I retired.
We get so many tax breaks here because if we didn't get some benefits, all the retied people would leave the state, as the cost of living here is so high and the winter so long that most have a hard time making it on Social Security and Medicare.
I understand, but the money's gotta come from somewhere. I would think at some point the ones pulling the lion's share of the load would speak up. This seems like it would be a universal problem...unless there is a sizeable chunk of well-off seniors.