Property taxes and retirement are of high concern for most people who are getting ready to retire or are already retired. Modern Survival!
With regards to taxes when you retire, your property taxes will amount to more dollars than any other tax that you will be paying. And they always go up! Sometimes alarmingly!
When people retire, they typically spend less money and they no longer receive an income from an employer (or employment dollars lessen due to working part time).
Therefore income tax rates for your state don’t matter so much as your property taxes.
Similarly retirees tend to spend less in general so state sales taxes aren’t as important either.
Some retirees will pull up roots and move to a ‘retirement location’ while often downsizing and lowering their monthly expenses.
Property taxes can be a huge monthly expense. And you know for a fact that 10 years from now those property taxes are going to be a good chunk higher than they are today. Will you be able to afford it?
That’s why I put together the following list (based on 2015 statistics – the most recent I could find). Should be close enough to draw conclusions and get a pretty good idea even though it’s 2017 – 2018 time-frame right now.
State Property Taxes sorted by dollars
The following list of lowest to highest property taxes by state is sorted purely on dollar amount.
The dollar amount of property taxes is affected by tax rates as well as assessed home value. Home values themselves vary widely which differs from state to state, region to region, and the even county or town level.
That said, the list below factors in each state’s median home value and their rates.
|District of Columbia||$475,800||$2,665|
This book may be of interest:
How to Make Your Money Last: The Indispensable Retirement Guide
Questions & Thoughts regarding Property Taxes
How important are property taxes with regards to your own retirement?
If you’re not retired yet, do you think you’ll consider moving to a lower property tax state or region? Where might that be, and why?
Moving to another state or place with lower property taxes is a big thing. Not everyone is up for that. Not only is it a lot of work, time, and energy, but you may be living family and friends.
On the other hand, property taxes might take a big bite out of a limited income after retirement…