Wow! Hawaii taxes for retirees are VERY favorable. From sales, property and income taxes, you’re going to have a tough time arguing with what Hawaii is doing.
I am actually stunned! Because you hear so much that Hawaii is a high cost state, and that is true. Real estate there is through the roof.
But once your mortgage is paid off, a lot of the other areas in which you get hit hard in your working career are minimized in the great state of Hawaii. At least from a tax perspective.
Their property tax rate is literally the lowest in the country. Now, don’t get me wrong, the actual dollar amount you pay in property tax won’t be the lowest in the country, due to the high property values, but even the dollar amount isn’t a huge burden.
If you follow my Youtube channel, you’ll know that of the three main taxes retirees pay, Income, Sales and Property, it’s the property tax I adhere to pay most attention to, followed by the sales, and lastly the income.
You can do a lot of work on the front end to minimize your income tax. But sales tax and property tax are perpetual. You are stuck with them.
So, you want to do what you can to find a low property tax and low sales tax state.
Hawaii fits the bill, indeed.