Is there a thread about benefits of moving to Florida for retirees?

[thumpersfriend]

My husband will retire in 6 years and he is wondering if we should get something down there 6 months and live in Michigan the other 6 months. He said he thinks he heard that it is a better tax advantage for retirees because of the tax structure if you are a Florida resident. Any experts out there find a benefit in this? Of course I would love it anyway but I think this would be the only way he would do it, to become a Florida resident instead of Michigan. Hope this doesn't sound stupid. Thanks for any advice.

 

[Feralpeg]

I'm not a tax expert, but I recently retired and am moving to Florida at the end of May. There is no state income tax in Florida. I have stock as part of my retirement plan. I will wait until I am a Florida resident to sell it. If I sell it in Missouri, I will have to pay Missouri a bundle. If I sell it in Florida, I only have to pay federal. To me, that's a big incentive.

 

[thumpersfriend]

Thank you for that info, now my husband is excited, he hates to pay tax that is not necessary. I do too! I think Michigan might have to get with it and realize they will lose alot of baby boomers if the tax situation is not beneficial to us. Looks like I might get closer to WDW than I ever dreamed. Do you think there are any other benefits? I hate winter and even if it is cold down there , NO SNOW!

 

[Feralpeg]

Since I haven't moved there yet, I'm certainly not an expert. I think there is no tax on food. I'm not certain on that, but I think I read that somewhere. You get Florida resident rates on Disney annual passes! That's a good one. There's so much to do. Since the weather is nice year round, no need to sit at home. If I think of anything else, I'll let you know.

 

[RitaZ.]

There is no state income tax in FL. This isn't just for retirees.

There are some property tax benefits for retirees, but in order to qualify your property can't exceed a certain value amount (don't know what that is). There is also a break on property taxes for widows, my mom qualifies for that. Anyone that owns a home and uses it as their primary residence can also apply for the Homestead exemption, you will not be taxed on $25K of the value of your home. In order words, say the value of your property is $150K, then $25K (H.E.) is deducted from that amount; bringing it to $125K and that's the amount used to determine your property taxes.

Is there a specific county that you have in mind? If so, contact their property appraiser office to find out info on property taxes for that county.

 

[RitaZ.]

Yes, that's true, food isn't taxed. However, if it's prepared food, you do pay taxes. Let's say that you go to a restaurant to eat or order a sandwich for take out, then you will be taxed on the prepared food.

 

[perdidobay]

The state of Florida has an intangibles tax, you may want to check on that one.

 

[thumpersfriend]

Well, maybe that might be a problem, I guess I don't quite understand that one. I sure appreciate all this help though. Anyone else wanting to retire there?

 

[Pin Wizard]

Yes, tax on prepared foods. Even in the food store, if you get things like the prepared fruit slices in a container, that's taxable. Intangibles tax? Was that the annoying small amount I used to send in each year? I think that was done away with a couple years ago. But sales tax there is 6%. I'm finding that in VA...for the most part...I'm paying less than that even though there's a state tax and a sales tax. Just bought 2 new cell phones today. Paid 4.5% total between the two taxes. And what's with VA's tax???? I find I pay different percentages when I buy different things! The thing I'll really miss is the homestead and widow's excemptions! I e-maled the tax office here the other day. They said no, there aren't any exemptions. BUT check with social services because certain things will get you an exemption of some sort. I'm wondering if being widowed might fall in there. Why else would he have mentioned it! I'll have to look into it since I have to apply by 4/30 for next year's taxes!

 

[doxdogy]

The website for the State of Florida is http://www.myflorida.com

 

[Simba's Mom]

We're also looking at different states to retire to, odd, I know, because our area draws a lot of retirees. What I wanted to remeind you of is that even though a state may not have a state income tax, look at what is eligible for the sales tax. We moved here from a state that had an income tax, to Texas, which has no income tax. But the first time I went to buy a t-shirt and had to pay sales tax-boy, what a shock! Right now I'm reading a good book about retirement in various southern states. Right now we're leaning towards Alabama-they seem to be really encouraging retirement there. Anyone with comments about that state? DH is especially interested because of the Robert Trent Jones golf trail (many courses he's played and loved).

 

[Kitty 34]

Originally posted by thumpersfriend
Well, maybe that might be a problem, I guess I don't quite understand that one. I sure appreciate all this help though. Anyone else wanting to retire there?

We plan on moving down there is about 10 years and have wondered the same thing.....go down there for good or half and half.

 

[Nick@ VB+OKW]

We are moving down their for good(see tag).

 

[gshoemate]

Not that it is a big deal, but even if you are a part time resident, you have to have a Florida license plate. We moved from Michigan and the cost to renew my registration was half what I payed in Michigan.