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Does California Really Have the Highest State Tax Rates?

California state tax rates stand as one of the highest tax rates in the US.

California is the state that has always ended up on movie screens. The Golden State offers just about everything; beaches, mountains and great weather. Who wouldn’t want to live there? The answer is not rhetorical. Anyone who hates paying high taxes wouldn’t want to live in California. California is in fact known as the third worst state for taxes.

In all of the United States, the west coast state of CA has the highest state sales tax and some of the highest income tax rates. If you live in California, before filing your taxes, it would be helpful to learn about the California tax rates.

California Income Tax Rates

California’s personal income tax system is composed of  ten brackets. The state actually ranks as the highest income tax rate among states who levy an individual income tax and seventh highest income taxes among all US states. Continue reading “Does California Really Have the Highest State Tax Rates?”

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The Top Ten States for Military Retirees- Part Two

In The Top Ten States for Military Retirees- Part One, we gave you the top five best picks to spend military retirement in. Five others fall among the best states for military retirees.

In the top ten states for military retirees part one,  at the top of the list, in the number one spot was Florida, followed by Texas, Alabama, Tennessee and Mississippi.Wondering what other states made the list?  If the top five didn’t catch your attention, maybe one of these will:

#6-Nevada: Are you a military retiree who likes to gamble? In sixth place is Nevada. Nevada has no income tax and no tax on retirement income and social security benefits. Although, there is a 6.5% state sales tax and there are also no property tax breaks for seniors in Nevada (perhaps you’ll win this back on weekend trips to Las Vegas).

#7-Washington: Washington ranks as the seventh best state to live in for military retirees. All retirees don’t pay taxes on their retirement income, social security benefits or pensions. Like Nevada, Washington has a 6.5% state sales tax and this percent can even increase to 9.5%, depending on the local tax.  There is a four property-tax relief program for seniors owning homes.

#8-Illinois: Illinois at seventh place, exempts retirement tax for military retirees and does not tax social security benefits.  The state sales tax is also 6.25% and can go as high as 10% in some areas. For seniors, there is a homestead exemption which allows $5000 reduction of the property that is paid taxes on. Illinois does not have an inheritance tax.

Continue reading “The Top Ten States for Military Retirees- Part Two”

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The Top Ten States for Military Retirees- Part One

#1 pick for the best tax-free military retirement state goes to the sunshine state of Florida!

Are you thinking about where you want to retire? Maybe you are wondering what state will leave you paying the least amount in taxes when it comes time to file with RapidTax.

Fortunately, there’s a list of states that don’t tax US military retirement pay. Among these military tax exempt states, some are more appealing than others (for a variety of reasons). Below, you’ll find a list of ten states we find most attractive for military retirees to settle in;

The Top Ten states for military retirees, in order from one to five:

#1-Florida : Florida has no state income tax, no tax on benefits, and no tax on retirement income along with no inheritance or estate taxes. Specific tax breaks for seniors include an extra homestead exemption that can be up to $50,000, offered to those who meet certain income limits. Not to mention, Florida offers a variety of  beaches and theme park attractions, meaning the grandchildren will love visiting.

#2-Texas: Following Florida, in close second place, Texas stands as one of the top picks for military retirees. With a tax-free retirement for veterans, the Lone Star State also has no state income tax, does not tax social security benefits, or any retirement income. Tax breaks for seniors in Texas also include exemption from school taxes for homeowners.

Both Florida and Texas not only have tax-free retirement for military retirees, but also both have a variety of Veteran Administration (VA) Medical Facilities. Deciding between the two warm states? The main difference; Florida has a 6% sales tax rate while Texas has a 6.25% sales tax.

Continue reading “The Top Ten States for Military Retirees- Part One”