If you are living in an expensive city as a retiree or as someone nearing retirement you may wish to scout out a less expensive place to spend your retirement years.
A quick Google search can give you the cost of living for various cities in the United States. Here for instances is cost of living for the Salt Lake City (SLC), Utah area where I live: Link
It is surprising the cost of living in one city versus another. For instance you might pay $1,000 per month for a 2-bedroom apartment in SLC, Utah verses $550 per month for a 2-bedroom apartment in Mesquite, Nevada. (see: Link). Imagine saving $450 per month on your apartment while still enjoying the same living space. That’s $5,400 per year in rent savings. Multiply that times 10 years and you’ve saved $54,000 you didn’t have to earn. It’s actually more than that as you would likely have to earn $75,000 so you can pay all the taxes and still have rent money remaining.
Imagine what it might mean for you to move from an a city like Salt Lake City, Utah where you pay a state income tax to a city like Mesquite, Nevada where there is no state income tax. Living in SLC you can expect to pay a 5% state income tax on your earning, plus a 5% corporate tax on your business income, plus a 5.95% sales tax on most of what you buy, plus an $837/capita property tax. Don’t forget that property taxes are levied against apartment owners and that tax is passed along in the cost of rent charged to the tenants. The lower the property tax in a state, the lower the rent can fall. In Mesquite, NV your state income tax would be 0%, average corporate income tax is 0%, your sales tax would be 8.1%, and average property taxes per capita in Nevada is $1,297 (see: Link). It’s interesting to note that even though the property tax is higher in Nevada than in Utah the average rents on a 2-bedroom apartment are still much lower in Mesquite, Nevada than they are in SLC, Utah.
If you are earning $40,000 per year you will pay 5% state income taxes on that in SLC, Utah, but in Mesquite, Nevada you’ll pay 0% of that income in state income tax. As someone nearing retirement or in retirement or semi-retirement, can you afford to give 5% of your income to the state if you can otherwise avoid it? 5% of $40,000 paid each year for ten years is $20,000. Wouldn’t you rather have that to spend on you and your spouse or on your grandkids than give it to the state government? Why pay more taxes than you have to? Haven’t you already paid enough? What would an extra $2,000 per year or $166.67/month mean to you? Would it improve your life? You might want to consider moving to a lower tax state in order to have more to spend on yourselves.
Why not enjoy the warm weather of Mesquite, the great golf courses, the proximity to St. George, Las Vegas, and Southern California while keeping your day to day living expenses (especially taxes and rent) to a minimum? Keep more of your money to spend on yourself rather than giving it to the tax man or the landlord.
Other articles about Mesquite that you might enjoy:
Mesquite, NV, the Best Kept Retirement Secret in the USALink
Consider a Mesquite, NV Retirement–Link
Mesquite, NV Might Be a Secret Oasis– Link
Mesquite, The Best Little City in Nevada– Link