eztime1

Looking to relocate in the carolinas.Both are beautiful states.Is there an advantage living in one over the other for a retired couple?

beach_dweller

We've lived in both (not retired though, so our tax situations may differ). I haven't noticed any major differences from one state to the other. Both have similar income taxes, property taxes, vehicle taxes, sales taxes etc.

Unless there is something specific to retirement situations, I can't imagine whatever minor tax differences there may be should impact your choice.

ncgrrl

I don't know about South Carolina, but in NC, property taxes are determined by county and city (if you live in one). Rates are adjusted with every budget cycle (July 1 - June 30).

Sales tax is state set -- however local governments can add to it. Unprepared foods are taxed at 2%, while other foods and goods are taxed at 7%. For example, at the grocery store you buy a 2 liter bottle of soda, it's taxed at 2% but if you buy a fountain soda it's taxed at 7%.

I think Charlotte adds another 1% onto that and Raleigh/Wake County is looking into it too.

Also, some communities have a prepared meal tax. So if you go to a restaurant and buy a soda, it's taxed higher than buying it at the grocery store.


You might want to check with your local public library for books on retirement living. I think one book is title 'best places to retire in America" and others like it.

Brian_in_Charlotte

The income tax rates are signficantly different (by about 2% I think), but as you're retired, that may not be a big deal.

aileen679

Taxes are one thing that you can depend on....to change. Which ever state gives you the best deal today, may the worse next month. Pick the one that suits you in some other areas than taxes.

I think that SC is trying to pass legistration similar to Georgia. The property evaluation will not rise as long as the owner does not sell. When he/she sells, the value is then re-assessed at market value. I don't know about NC. But if this passes, it will be a dandy thing for the retired home owner.

BarryK

I know someone who was planning on retiring to NC, but changed his mind when he found out pension plans were taxable. This was a number of years ago and I don't know all the details, but may be worth looking into.

Litespeed_Chick

Sales tax is 5% across the board in SC

Income tax is max 7%, this may indeed be of intrest if the retired person is taking madatory distributions from a qualified plan over age 70 1/2, or just has a lot of investment income.

You might want to check on the estate tax issues, as well, if you have kids. I THINK NC has a separate state death tax. In general, I THINK NC has higher taxes overall...but don't take it from me...should be pretty easy to google.

shorebrau

Google "cost of living" and "retirement" and you will find sources which compare cost of living and quality of life in various areas. There are a lot of factors, including state and local taxation of pensions and SS, personal property and vehicle taxes, real property taxes, and state estate taxes.

Based on my travels and discussions with those who have lived in the south (Florida and South Carolina,) you get what you pay for. Road quality and other quality of life issues should be considered. You need to decide what is important to you. My sister hated living in SC: it was hot, humid, lots of bugs and need for regular extermination services to keep the termites at bay (this in a new brick home in the mountainous western area.) She also noted a widespread fundamentalist Christian atmosphere which seeped into most public policy decisions, with an undiversified population. Great if you wish to base a social life around chuch related activities. Ditto, parents experience in Florida. No state income tax but they tax your investment portfolio, and the lack of support for education means a very uneducated workforce, which results in low quality services. This does not reflect on those who choose to live in these areas, but consider what you are used to before taking a plunge blindly.

Consider renting in an area for 6 months before moving. I know many people who have moved the day after retirement and regret the decision. It's not the same living in a place all year around versus vacationing for a few weeks a year. Do a lot of homework.

gail

Fireworks are legal in SC - a definite advantage.

Sunshinesue

eztime1,
For reliable tax information, you might consider setting up a phone appointment with a reputable CPA in North Carolina and one in South Carolina. Get your answers from both then do your own comparison.

Shorebrau,
What the heck has Christian fundalmentalism and education in Florida got to do with taxes in North and South Carolina???

LN

You would be truly wise to research each area very well AND then go rent for about 6 months to a year.

Even if the tax structure is great you could hate the area and neighbors.

Litespeed_Chick

It's hot and humid in the South. Wow, what a wealth of information Shorebrau was able to provide.