My diatribe on taxes and retirement locations
DAVA390,
I read your post and thought maybe I was the one that wrote it! We've had dreams of retiring to MD for about 15 years now. We currently live in PA. Like you, I don't like the way MD is heading politically. I have been saying that it is becoming the California of the East. I agree with much of the advice that has been posted here except for the comment that all states are pretty much the same. Politically and economically, that just is not true. A few weeks ago, I met a home builder from the Bethesda MD area. I brought up the topic of "MD politics" and he went off on a tirade calling the governor some very nasty things. He said that 15 years ago, it would cost him about $700 for permits to build a home. He said now it is $55K. Yes. They've thrown in all different sort of assessments and fees. Insanity.
As far as taxes go, you really have to look at the "total tax burden" which includes property tax, sales tax, fuel tax, alcohol tax, estate tax, income tax, etc. Many of those taxes are hidden, for example Virginia adds 11.1 cents per gallon to gasoline, while NC adds 37.75 cents. But if you don't drive much, no big deal. Likewise, a case of Becks beer costs me $24 in DE but costs $35 in NY state, much of it being taxes. But if you don't drink much... you should try it
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The hot button for me is property taxes. After all, I owned a 4,800SF home in South NJ and was paying $24K per year. Insane. Most property taxes go toward the school system and we were growing and adding schools like crazy. I have more of a libertarian view on the government. I want the local govt to provide a school system and maintain the roads, not much more. That is about all we get where I am at in PA now. No fire dept, no police dept (state troopers service the area). So on a $500K home, I am paying $7200/year. That is still high, but not compared to NJ. When I retire and have limited income, I'm hoping to keep it to around $3500/year or less.
As far as criteria for our retirement, we'd like to be on or near the Chesapeake. I'd like to be within maybe 90 mins of a major airport. We also are kind of "foodies", so we like shopping at stores like Wegmans, Whole Foods, Harris Teeter, Trader Joe's etc. We also like the change of seasons, to a degree, and don't want to go too far South. When you get older, you have to think about medical care too.
The ONLY county in all of MD that has low property taxes is Talbot. You can get a $500K home there and pay about $2K in taxes. Though you have to travel to Annapolis or Salisbury to do some of your shopping. But again, MD politics are killing me. (Did I mention that I believe in the 2nd amendment? Not a good state for gun owners.) MD is out.
Someone mentioned that DE has high taxes. I question that. I looked at homes there once and property taxes sere VERY low. DE derives much of its revenue from the fact that nearly every major corporation is incorporated there and pays taxes to them. (Because their courts are historically favorable to businesses. Smart.) Anyhow, you can't be on the bay and live in DE. DE is out.
So that leaves VA. We are in the early stages of investigating. But my trips down the Eastern Shore (ES) indicate that it is very rural once you get South of Cambridge or so. Sorry, but I can't deal with shopping at a dingy Food Lion. So all that leaves is the Western shore of VA. We recently explored the "Northern Neck". You can get a pretty nice WATERFRONT home for about $500K and taxes are about $2,500. BUT your shopping is limited to Walmart or Food Lion and it is a pretty far drive to Fredricksburg, Norfolk or Richmond.
Sooooo.... our latest interest lies in Williamsburg, VA. It is not exactly a boater's paradise. You have the York river on one side and the James river on the other. Yet there are not that many marinas. Though there are some really nice gated communities that have their own marinas. Taxes on a $500K home are around $3K, but some of these communities have steep HOA fees that could add a couple grand. Though they offer pools, gyms, tennis, etc. so you have to look at that too. You are about an hour or so from Richmond and Norfolk airports, an hour to the beach, have a theme park in town (when grandkids come), great shopping, lots of retirees, good health care, etc.
That is my life story. To throw you a curve ball... have you been to Cape Cod? My dad retired there. Great place. A bit crowded during the summers and a short boating season, but very nice for retirees.
