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Best Tax-Friendly States for Retirees
When it comes to housing, taxes, and the costs of living, some states are better than others. Pebble Creek, Arizona, is one such paradise. What are the most tax-friendly states for retirees? Keep reading to learn more.
Alaska is prized among retirees for its picturesque vistas and abundant wildlife. State and local sales taxes are reasonable at 1.78 percent, which balances out the higher property tax rates. A homeowner in Alaska will pay approximately 1.04 percent of their home’s market value in property taxes. For example, a $200,000 home will tally $2,080 in annual property taxes. However, Alaskans benefit from the lowest gas taxes in the country because of their proximity to some of the country’s largest oil reserves. Residents also receive annual dividends from oil production through the state’s Permanent Fund Dividend.
On the other side of the continent, Florida residents do not pay income or inheritance taxes, and local sales taxes vary between 6.5 and 7 percent. The average home value in Florida is $182,400 with a yearly property tax of $1,773. Florida has the highest percentage of non-working residents over the age of 65 making it one of the most popular destinations for retirees. However, hurricanes and humidity are a deterrent for some homebuyers.
Arizona, home to the Grand Canyon, is one of the most popular destinations for retirees mostly because of the state’s approach to affordable housing. Property taxes are very affordable for Arizona residents at approximately $1,300 a year–$800 less than the national median–, and the average home value is $178,000. Low property taxes also translate to low housing and energy costs. Housing is usually the largest expense for retirees, families, and singles, but in Arizona, housing costs are 2 percent lower than the national average. Arizona is also unique in that they use a property valuation freeze to alleviate tax burdens on residents below a certain income level. A freeze locks the value of the home, preventing future property tax increases. To qualify, individual incomes must be below $35,000 a year or $44,000 for properties with two or more owners. Retirees over the age of 70 can choose to defer property tax payments completely if they have been in their current home for six years or in the state for ten years. Arizona residents are subject to low-to-moderate state and local sales taxes, but as of 2005, there are no estate, inheritance, or pick-up taxes. If you’re looking for relief from high humidity and high property taxes, Arizona is the place to be. For homes for sale in Pebble Creek, Arizona, let the experts help you find your dream home.