Tax season is here; are you doing two returns?

I have written extensively on this site about the lack of state income tax in Washington State. Many readers may live in another state such as Oregon or California. Unless you live in Washington or one of six other states you will likely be filling out second income tax return this year. Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming have no income tax. New Hampshire and Tennessee have no wage income tax but they do tax dividends and interest which can adversely effect the retired.

Most of the states without an income tax do have a sales tax. A notable exception is the State of Alaska which has neither tax. New Hampshire which has a partial income tax as noted above, also has no sales tax.

Washington State has a sales tax. For retirees and frankly most other people earning legitimate income, a sales tax is better than an income tax. An income tax punishes those that save. A sales tax only effects consumption.

Higher earners get seriously clobbered by an income tax. According to an editorial Oregonian article, Oregon taxes annual income from zero to $3250 at 5% and then 7% to $8150, 9% to $125k, and then 9.9% for the "wealthy". Oregon taxes the poor. That's a special kind of nice; isn't it? According to the Oregonian article 70% of Oregonians fall into the 9% bracket. How is if "fair" that Oregon, one of the nation's "poorer" states ranked 29th in income, has 70% of the people falling into the 9% bracket?

Most importantly, if a retired person diligently saves for retirement and or has a generous pension, states like Oregon will come after you like a hungry lion. Seriously taxing 9% on income over $8150? The compassionate government of Oregon will tax the guy that lives in a tent under a bridge at 5%? Really? That just sucks.

Meanwhile in Washington State the sales taxes do not tax food and medicine and other core essentials so they do not "punish" the poor like Oregon does.

Oregon treats you like you are in the dreaded top 1%, when you are "rich" and make more than a lousy $8151 A YEAR. Oh yes, the state lowers the boom on your decadent lifestyle with a 9% tax on that burger flipping income of $12,000 a year. Please, soak up the full effect of my heavy sludge of sarcasm on this. Seriously Oregon? $8151? 9%, really? According the the Federal government an individual is considered below poverty with an income of less than $11,770 per year. People earning less than $11,770 should pay NO TAXES at all on that income. The Oregon government would have you believe that they are some sort of Robin Hood, but in reality they are just robbers in hoods.

Retirees are well advised to steer clear of states with a heavy handed income tax. Our southern neighbor, Oregon has a tax that brutally offends the poorest among us; and if you are in a more comfortable income bracket, they will plunder you like a 18th century pirate. All the while those vile politicians smile and tell you how well they take care of the poor with your taxes. Oregon's government is a sickening wretch that should be ashamed of that horrendous affront to humanity they call an income tax. That is but one man's opinion; one should do their own diligent research before deciding upon where they shall retire. As always when making any decision that involves taxation consult with your trusted tax professional.

Fall Color in Washington

Washington state has some fantastic fall color. It is generally found along the western slopes of the Cascade Foothills and it is brilliant. I though I might share this article with you all about five great fall color drives in Washington. To read the fine article by Bill Holland, Click here.

I also though I might re-post the article that reminds you all why Washington is such a great place to retire.

Originally published by Real Estate with Realtor Rod; November 1st, 2013.

Washington State is not the first state you think of when pondering the exodus of retirees to "fairer" locales. You might think of the warmer sun belt states like Arizona and Florida. But Washington offers a unique combination of favorable taxes for seniors, a variety of climates from dry to wet and mild to wild. Washington offers its qualifying seniors a significant reduction in property taxes. There is no state income tax. Southwest Washington really hits the spot, because for those who like to shop and spend money the very nearby Oregon has no sales tax. A trip to the Oregon coast is easy and inexpensive.

Many retirees in the area keep two inexpensive (or expensive depending on their finances) homes. One in Washington State and another in California or Arizona. They fly south for the winter in November and return to our more tolerable climate in the late spring. usually it is better to claim Washington as the "home" state since we have favorable tax conditions for seniors. Although Washington is not the TOP rated state for tax friendly status, it would be when considering the live in Washington, play in Oregon angle offered by Southwest Washington.

Vancouver offers the glorious beauty of the west side of the Cascades with a moderate amount of rain and very modest snow. East of the Cascades delivers much more sunshine but also has more drastic swings in temperature and much more snow in the winter. Southwest Washington also offers close proximity to the aforementioned Oregon Coast and the metropolitan Portland area.

Speaking of the coast, Southwest Washington has the lock on reasonably priced beach property. The Oregon coast is world famous, largely because the state of Oregon spends millions of dollars promoting it. The southern Washington coast is equally spectacular but offers amazing values in property and taxation. This is especially true when compared to Oregon which is very tax unfriendly according to several prominent sources such as Money Magazine and Kiplinger.

Sourced from Kiplinger.com

Our southern neighbor, Oregon is rated as "least tax-friendly" for seniors while we enjoy the "tax friendly" status. Our base property taxes are much lower than Oregon and many seniors qualify for one of four property tax reduction programs. Sales tax is a much less intrusive tax than income tax for middle and upper income seniors. Arizona rated higher than Washington for tax friendly status but actually depending on income and spending habits we might be better than them as well.


Now that all this taxation benefits are out of the way, we can consider other factors. The well known fact that Washington state is absolutely gorgeous is a strong draw. We have four distinct seasons here in Clark County but none are severe. That is tough to find anywhere on Earth. It seems like the proverbial slam dunk for a retirees to move here. And many of them are moving here. So there you have it, Washington State is the best northern state to retire to. Start packing.

Retire to Washington

Originally published by Real Estate with Realtor Rod; November 1st, 2013.

Washington State is not the first state you think of when pondering the exodus of retirees to "fairer" locales. You might think of the warmer sun belt states like Arizona and Florida. But Washington offers a unique combination of favorable taxes for seniors, a variety of climates from dry to wet and mild to wild. Washington offers its qualifying seniors a significant reduction in property taxes. There is no state income tax. Southwest Washington really hits the spot, because for those who like to shop and spend money the very nearby Oregon has no sales tax. A trip to the Oregon coast is easy and inexpensive.

Many retirees in the area keep two inexpensive (or expensive depending on their finances) homes. One in Washington State and another in California or Arizona. They fly south for the winter in November and return to our more tolerable climate in the late spring. usually it is better to claim Washington as the "home" state since we have favorable tax conditions for seniors. Although Washington is not the TOP rated state for tax friendly status, it would be when considering the live in Washington, play in Oregon angle offered by Southwest Washington.

Vancouver offers the glorious beauty of the west side of the Cascades with a moderate amount of rain and very modest snow. East of the Cascades delivers much more sunshine but also has more drastic swings in temperature and much more snow in the winter. Southwest Washington also offers close proximity to the aforementioned Oregon Coast and the metropolitan Portland area.

Speaking of the coast, Southwest Washington has the lock on reasonably priced beach property. The Oregon coast is world famous, largely because the state of Oregon spends millions of dollars promoting it. The southern Washington coast is equally spectacular but offers amazing values in property and taxation. This is especially true when compared to Oregon which is very tax unfriendly according to several prominent sources such as Money Magazine and Kiplinger.

Sourced from Kiplinger.com

Our southern neighbor, Oregon is rated as "least tax-friendly" for seniors while we enjoy the "tax friendly" status. Our base property taxes are much lower than Oregon and many seniors qualify for one of four property tax reduction programs. Sales tax is a much less intrusive tax than income tax for middle and upper income seniors. Arizona rated higher than Washington for tax friendly status but actually depending on income and spending habits we might be better than them as well.


Now that all this taxation benefits are out of the way, we can consider other factors. The well known fact that Washington state is absolutely gorgeous is a strong draw. We have four distinct seasons here in Clark County but none are severe. That is tough to find anywhere on Earth. It seems like the proverbial slam dunk for a retirees to move here. And many of them are moving here. So there you have it, Washington State is the best northern state to retire to. Start packing.

Welcome!

I would like to welcome you to the Retire to Washington State blog. I intend to provide great information about retiring to Washington State. Find out why Washington is so highly rated among national organizations that rate places to retire.

The Evergreen State offer retired residents a low property taxes, no state income tax and favorable laws for seniors. This Blog focuses mostly on Southwest Washington with its marque city, Vancouver. Southwest Washington offers close proximity to both Portland, OR and Seattle. The Southern Washington Coast is also part of this majestic portion of America's 42nd state.

There is so much opportunity for retirees in this part of the country. We have one of the most affordable coastal living areas in the US. Wonderful outdoor activities and two major US cities to provide any and all of that urban excitement you desire.

Stayed tuned to this blog and discover why Washington State is such a great place to retire.