Retirement thoughts Past Present Future

[Torvy]

Everywhere I’ve lived, property taxes are based on current valuations adjusted annually. The county assessor determines current value.

It does vary, but you are right. In most states valuation is calculated periodically. Some have homestead protection that limits the changes. Others limit how much valuation can change.

 

[Torvy]

Only because the state used to tax social security. That ended in January with new legislation. My son’s truck registration in Texas I almost $1000 annually, mine is about $100. Property taxes on the average home where he lives near Austin are close to $10k, mine are $3k on 20 acres with 3300 square foot house and 3000 square foot barn. My income taxes still don’t add up to the difference in property taxes.

Lol. It is about the rate. Salaries and values are higher in Texas, especially near Austin. That minor change on SS will maybe move NM a place or two.

Some states register cars based on age, others are based on value. The net tax rates on New Mexico will remain considerably higher than in Texas.

 

[jyoutz]

Lol. It is about the rate. Salaries and values are higher in Texas, especially near Austin. That minor change on SS will maybe move NM a place or two.

Some states register cars based on age, others are based on value. The net tax rates on New Mexico will remain considerably higher than in Texas.

I’m happy with my annual $100 auto registration and $3000 property taxes and my income tax isn’t that high because we have a lot of deductions on state taxes. We still get to claim many of the deductions that we can no longer for federal taxes after the 2018 congressional tax bill.

 

[Bill Guenthner]

Did you forget this is a retirement thread? Afraid or not, they aren't going to have the energy to do everything that needs done. They will have to hire the plumber, HVAC contractor, roofer, painter, electrician even if they know how. Everything moves slower

You're handling it pretty well, but yes, everything moves a lot slower.

 

[Bill Guenthner]

That sounds like a great plan. My wife is planning to work until the son finishes his Engineering degree if job and health stay good. Touching savings or retirement would be risky in our case.

In cases where the husband was the primary earner and the wife is going to rely on drawing the husband's SS to get by after he passes it is hugely advantageous to delay drawing SS as long as possible. If you're alive and in decent health, better to deplete other funds first and leave SS to 67 or 70.

 

[Larry Caldwell]

Regarding places to settle following retirement, northern Wisconsin and adjacent UP of Michigan are terrible, horrid places. Nobody should move there!

Most rural neighborhoods are the same. People are well advised to stick to areas where you can look out your window and see at least two other houses.

 

[Larry Caldwell]

In the end calculations, though, Texas and Florida have a much lower tax burden than New Mexico. Your state is 12th worst in the US.

Tax Burden by State in 2024

Tax Burden by State in 2024

wallethub.com

Lists like that are office chair estimates. Oregon is right in the middle at #25, but the property tax burden is supposedly 4.39%. My property tax burden is actually 2.5%. That's because there is no state property tax. All property taxes are local. If you live in the Portland Metro area, you are screwed. Most of the state has a more independent frame of mind, and would rather do it ourselves than vote for county services.

 

[Larry Caldwell]

Everywhere I’ve lived, property taxes are based on current valuations adjusted annually. The county assessor determines current value.

In Oregon, taxable property value is based on the 1993 assessment plus 3% a year maximum tax increase. True market value is appraised separately, and is much higher than the taxable value. New construction is taxed on the value at time of construction, which works out OK. A 40 or 50 year old house is a money sink as repair bills mount up.

 

[Hay Dude]

Only because the state used to tax social security. That ended in January with new legislation. My son’s truck registration in Texas is almost $1000 annually, mine is about $100. Property taxes on the average home where he lives near Austin are close to $10k, mine are $3k on 20 acres with 3300 square foot house and 3000 square foot barn. My income taxes still don’t add up to the difference in property taxes.

10k? I knew Austin was high, but thats nothing compared to PA.
We all know taxes vary within state borders. Some parts of PA have low property taxes and some are high. Plus we all have different incomes and property values. We got millionaires here and guys just scraping by.
Only way to really compare state taxes is through state income tax, sales tax, fuels tax, and a few possible others.
Introducing property taxes muddys the waters.

 

[jyoutz]

10k? I knew Austin was high, but thats nothing compared to PA.
We all know taxes vary within state borders. Some parts of PA have low property taxes and some are high. Plus we all have different incomes and property values. We got millionaires here and guys just scraping by.
Only way to really compare state taxes is through state income tax, sales tax, fuels tax, and a few possible others.
Introducing property taxes muddys the waters.

I know it varies by location. But my point was that the states that don’t have income taxes get their revenues in other ways. Since one of my sons lives near Austin, I am familiar with all of the local taxes and fees they have there. I was shocked by the $1000 auto registration, high local sales taxes, and of course the property taxes. I’m also surprised at all of the fee highways they have in the urban areas in Texas. Yes, they have no income tax, but they still rake in the revenue from residents and non-residents.