What state is the cheapest place to retire at?

JohnBoy45 · Jan 27, 2006

Hi, Wondering what would be the cheapest place for someone to retire to in the U.S.? Here in Cookeville, Tennessee it's not cheap anymore to retire here because one thing is the state sales tax is almost 10 percent. People have pay taxes on food and clothing and medicines.

Thanks, Terry.

Gatorboy · Jan 27, 2006

( Here in Cookeville, Tennessee it's not cheap anymore to retire here because one thing is the state sales tax is almost 10 percent. )

Tennessee has no state tax so they get their money with a high sales tax. Each state will get it's money one way or the other.

EddieWalker · Jan 27, 2006

Kiplingers magazine does a story every year that compares what it costs to live in each state, and in the bigger states, they break it down to major cities as well. I forget the lowest one, but I think Wyoming was one of the cheapest.

I'm in Texas, and it's in the middle.

The most expensive were in New England. All those little states in the North East were just way off the chart!!! Sorry guys, nothing personal against anybody living there.

There criteria was what it costs a family to live in each place. Same sized family, same sized home and compared taxes along with cost of living.

I don't know how accurate it was since there are so many variables, but it gives you an idea of what to look for. You could try their website to see if it's listed there.

Good luck, if you find a good source, please update us with it, I'm very curious.

Eddie

Farmwithjunk · Jan 27, 2006

Kentucky has one of the lowest cost of living numbers in the 50 states. It has a low average income to go with that. Housing is about as cheap as anyplace in the country. Even the "big expensive homes" are cheaper here. Medical cost is no real bargain, but with several major medical centers, it's in line with the rest of the country.

There's lots to do in terms of State parks, resorts, caves, lakes, entertainment venues, and sports.

Climate is tolerable in the winter and summer. WONDERFUL spring and fall.

So, I guess when it's time for me to hang up my tool belt and claw hammer, I'll just stay right where I am.

Highbeam · Jan 27, 2006

Seems that the states with an income tax and no sales tax will be your best bet. Oregon is one of those. Since your income will be reusced but your spending not reduced as much that would be good. You aren't planning on taking it with you, right?

I am also very curious on that cost of living article. For us workers, the next step is adding income rates to the mix. It is getting difficult to live in WA. Too many eco freaks and housing costs are out of sight. I couldn't afford to buy my starter home again, thank goodness I bought when I did so I could ride the wave of escalating prices. I'd like to think I should be able to live in a decent home, I'm not flipping burgers for crying out loud.

KubotaSteve · Jan 27, 2006

I don't think you could necessarily go by state in general. For example, most places in WV you can buy a home with decent acreage for under $100,000; however when you get to the eastern panhandle (is now a suburb of DC basically) the cost of a house on a 1/4 to 1/2 acre lot is now $350,000 to $400,000. So in the same state, costs of housing can vary greatly as can county taxes, city taxes, etc.
A friend of mine just retired and she moved to NC. It had to do with the cost of retirement as she has no family down that way.

bebster · Jan 27, 2006

As someone living in "Taxachusetts" you need to take this with a grain of salt! Also, my lawyer would tell me to disclaim any accuracy of this and that I'm passing this along "as is" and that you should consult your own advisors before making any decisions. I'm just a packrat who squirreled this away when I saw it.

That said, attached is a table of state sales tax rates I go somewhere a couple of years ago. This is one cost of living in the state, and if you spend a lot this is important difference.

bebster · Jan 27, 2006

I also squirreled away the attached table of state income taxes. If you earn a lot, then this applies of course.

I know that in Florida they also have an asset based tax that taxes assets (this makes up for not having any income tax). So there's a third component of taxes.

Finally, cost of living varies widely by state (and metro area) so that's a 4th dimension to the problem.

jinman · Jan 27, 2006

( What state is the cheapest place to retire at? )

I keep wanting to say in a state of poverty and far, far away from all relatives. /forums/images/graemlins/wink.gif

I've got the first part already done. /forums/images/graemlins/blush.gif /forums/images/graemlins/laugh.gif

BB_TX · Jan 27, 2006

Only 5 states that do not have a sales tax and only 9 with no state income tax. See a trend there? /forums/images/graemlins/mad.gif And even though Texas state sales tax is 6.25%, locally they add on to that. Here the total is 8.25%.