Tuesday, February 8, 2011

Tax Unfriendly States for Retirees

Staten Islanders are known for retiring off the Island to New Jersey, but this may be a mistake. New Jersey, it turns out is one of the least friendly states for retirees, in terms of taxation according to this Kiplinger's article.

The article's blurb on New Jersey places it amont the top ten most unfriendly states and has this to say:

Its nickname may be the Garden State, but New Jersey is a thorny thicket for some retirees. Median real estate taxes are the highest in the nation, according to the Tax Foundation. There are a few bright spots: New Jersey does not tax Social Security benefits and military pensions. It also allows residents 62 or older with incomes of $100,000 or less to exclude up to $15,000 ($20,000 for married couples filing jointly) of pensions, annuities and IRA withdrawals. Groceries, medicine and clothing are exempt from sales tax. The state imposes an inheritance tax on the transfer of real and personal property worth $500 or more, but bequests to family members are exempt

While Staten Island has been known for lack of retirement options, this is changing with projects such as The Tides at Charleston and The Club at Clove Lakes Park. It is definitely worthwhile for people who are thinking about retiring to reconsider a move to New Jersey. Staying local probably will be a better financial decision, not to mention staying near friends and family!

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