Thank you for your informative video. I'm like you. A native Californian, 5th generation. Born in SF. I'm not going anywhere. Everyone I know lives here. It's expensive but I'll find a way to stay here with my children, grandchildren and my 98 year old father is still alive.
My dad grew up in San Francisco. He probably lived there from the mid 1920’s to the mid 1940’s. Maybe my dad or grandparents knew your grandparents. It’s a small world.
I thought I was reading about me when I saw your post. I'm a 5th generation, too, have lived in the Pacific Northwest three times and then came back to the Bay Area and Central Valley to care for my parents until they passed. I moved back to WA in 2021 to save money on taxes, utilities and general cost of living. Sounded like a good idea but I'm freezing here, ache all over from the cold, wet climate and am desperately lonely for my friends and the sun. This is not a welcoming place especially for Californians. I'm longing to return. I know, 20/20 hindsight. The takeaway is to know where and when you're happy and to let go of the constant searching for "home" which may only exist in memories.
@@1voiceworks just read your message and it resonated with me. I’m a native Californian and your sentiments are heard loud and clear. Thank you for reinforcing my desire to stay “home” in California when I retire.
There is another ‘tax’ that is too often ignored, called insurance. Some places you need it more than others and in those places either it costs a lot, or you can’t get it at all. It needs to be a consideration when making decisions. Even with a good policy, getting wiped out is no fun.
Absolutely, insurance is a vital form of protection, yet it's too often overlooked. In high-risk areas, it may be costly or unavailable, but there are some estate planning/asset protection strategies that may help. At Cunningham Legal, we offer expert advice in asset protection and estate planning, and we have the professional connections needed to provide you with comprehensive care. Professional guidance is essential in estate planning matters, and we're here to provide it. Visit our website at www.cunninghamlegal.com/california-law-offices/contact/ to connect with us and explore how we can guide you in the protection and transfer of multi-generational wealth.
I'm retired and live in California. This year I paid $4600 in federal income tax but $200 in state income tax. My property tax is $2600 a year (because I have owned the same house for 36 years) and it can't increase more than 2% every year. That leaves me enough to travel and eat out. 16:55
You're kidding. As a Californian from the Central Valley and Sacramento Valley, air conditioning in 110-117 degree weather is absolutely imperative. PG&E is a monopoly. When I lived in Rocklin, CA my monthly utility bill was more than $650 for an 1800 s.f. house. In winter it's cold! Yes, you need heat unless you can wear a coat inside all day long when it's 45-50 degrees outside.
Not only does California supply fresh vegetables and fruits throughout the US but also Canada as well. As for Florida orange juice, 40 percent of orange ships from California to Florida daily. I own my own transportation company so I know a thing or two about fruits and vegetables that California supports the rest of the nation and Canada.
I’m another California lifer, 78, and happy as a clam here in Silicon Valley. I’ve been in this old house for 35 years, just between the Apple spaceship and the Google-plex in Mountain View. I’ll leave in a bag on a gurney. We looked hard for ‘a place to retire to’, visited Florida, Arizona, Colorado, (Texas was a non-starter), Oregon, Washington, Nevada, New Mexico, and Utah. Nothing came close to what we have here.
It's great to hear about your love for California and your home in Silicon Valley! I admit that I’m biased, but I really believe that retiring in California is my best bet. Being near to family & friends, enjoying the sunny weather, being close to top-notch healthcare options, and the overall culture in CA is just unbeatable.
Thank you for sharing the truth (while hysterical ignrance screams). I have a modest pension and SS. My paid-off condo was purchased thirty years ago. I have no credit card debt or car loan. I'm a lifelong Californian. I love the quality of life. I gladly pay California taxes. I'm happily here forever.
I live in a 3 bedroom town home in SoCal. Property taxes are 4800 per year. My single family home on 10 acres in Michigan is 500 per year. Michigan is cheap, but damn its cold.
Thank you, very informative information. Property taxes are pushing me out of Calif but I’m born and raised here, but years ago I did relocate to Phoenix for 10 years and came back to Calif. You shared a lot to consider.
That trip to Phoenix was expensive - had you stayed put, your property taxes (assuming you owned your house) would have been capped by prop 13. By going and coming back, you forfeited the time you had accrued, which probably has a lot to do with why you’re being driven out by property taxes now. Not enough people are aware of the ‘friction costs’ of moving around. Sorry for your troubles.
@@pearlperlitavenegas2023 Yes, he ‘could have’. However, his use of the term ‘relocate’ and the ten year term added to the fact he is complaining about property taxes running him out lead me to believe he did not hold any California housing during his absence. I have been wrong before though - I once thought I made a mistake.
@@harleyb.birdwhisperer Prop 13 in CA was by Republican Howard Jarvis in 1978. It has been under attack ever since by democrats. They chip away at it year after year. They want more and more of your money via taxation, basically stealing from your pocketbook and putting it in theirs. The worst part is what they want to spend it on. If you are enjoying the benefits of Prop 13, consider carefully who you vote for.
Thank you for the informative video. I am 65 and live in CA. I downsized 19 months ago after retiring and completed information correctly for a transfer of the base value assessment to my new smaller home and am still waiting for L.A. assessor to complete the process even though I have called many times. They are very slow in processing these transfers and I have had to pay the higher taxes while waiting.
@@gradylucas5265 I received the reimbursement about 6 weeks ago along with revised tax statements for the next tax payment. It took under 2 years to get the reimbursement and the revised tax statements. I think these transfers are difficult for the assessor's office to process and most likely have to be done without much automation. I am sure they are understaffed for the amount of work they have for handling the largest county in the U.S.
The property tax rate is lower in California than Texas or Florida, but the property value is higher. You are also protected from large tax increases in California if your property value goes up so you do not have a sudden leap in your property tax bill. Also California does not tax most food or medicine. Pretty fair.
The rate is lower, true, BUT the property values are sky high even for an old(er) property. So, a smaller percent rate multiplied by a very large property valuation equals a large property tax bill. And here in the Bay Area it's not just your property tax bill because it includes all the bond issues from current to years ago that gets added onto your bill. Even with Prop 13 (1978).
Thank you for pointing out these benefits, however, I think it is better to mention cons of retirement in CA, which gives a completer picture to see if benefits outweigh the disadvantages.
Our pleasure, we appreciate sharing our knowledge to the community and create a safe space to grow. Those are excellent suggestions! It is always beneficial to see the pros and cons of any scenario. Be sure to subscribe and tune in weekly!
I have always enjoyed/love California but like you said, each situation is unique. For me, the # 1 and only thing is the weather and in particular, the 6-mile line from the ocean in LA down to SD. There is always a huge house cost to that 6-mile line, but I could afford it if I had to. So why am I still in Orlando, FL? Because I am retired and still always get to travel for 2-3 months in the summer and that is the time in Florida that is miserable weather-wise. So, for now, I would rather live with the best taxes and good to decent weather for 8 months but get out of this place for 3-4. In the 6-mile California situation, I would still want to travel in the summer so the times when I could get the most ROI out of the weather, I would not be there anyway. Update to say the current housing cost in Florida has gone crazy the last two years, so if I did not already own my home, I would not purchase a property in any of the major cities/suburbs of Florida. I say sell my house and move to the Mediterranean coast of Spain so we can travel year-round in Europe - ha. Anyway, I am a huge California fan, and for anyone considering moving from or to there, spend the time to do these tax calculations because if it makes sense, California is hard to beat!
@@MoneySavingVideos -It is my own made-up line (apologize for this) that signifies what I think is perfect weather at the beach. That ocean/air weather effect lessens as you move inland, so I just say 6 miles and in towards the ocean.
@@MoneySavingVideos I can't tell you how much time I have spent in that area over the last 30 yrs & IMO it truly is magical weather (the morning marine layer that some say is cold does not bother me at all). You are very lucky my friend & once again I really enjoy the winter/spring weather and activities in Orlando, FL but would not stay here if I was not able to travel/live someplace else from June-September - ha.
We don't have a specific video on that, but here are some videos on similar topics: www.cunninghamlegal.com/rethink-your-retirement-planning-strategy/ www.cunninghamlegal.com/can-income-smoothing-lower-your-taxes/
I’m in a house here in NC that would be over a million dollars in CA. Born and raised in CA. My house payment including tax and insurance is about 1k less than rent on a one bedroom / bath/ carport / no air conditioner in Costa Mesa where i last lived in CA. Gasoline has been between $2.95-$3.19/g for the year I have been here. Utilities are 1/4 what they are in CA and that is with about $150 per month living just outside the City. If we ever incorporate here that will hopefully go away. On City water, sewer, electric. So no septic or propane. Natural gas and electric. Weather is similar to CA except for the humidity and it is beautiful here. I dont dare live 5 minutes from the beach as i did in CA because of hurricanes but an hour away from ocean and mountains with a lot of woods and winding roads that remind me of CA in the 1960’s is something i enjoy driving on. We still have a rush hour here between where i live and the capital instead of mind numbing traffic 24/7. I am fine staying where i moved to. (Edit) Food options are improving, because of the numerous farms we also eat fresh here, we have new laws relaxing some the alcohol hassles. Something with taxes here: While the sales/and other taxes are lower (income tax coming down yearly) they do tax food at various levels but low tax and they tax service - i had to adjust to that.
There are several strategies that can be used to protect assets, which is covered on our website. For more information, please review our practice area page on elder law: www.cunninghamlegal.com/california-legal-services/elder-law/
Advanced estate planning could potentially help manage these costs, depending on your circumstances. Strategies such as trusts or tax-efficient investment accounts might help protect your assets and reduce the tax burden. Consulting with an estate planning attorney could provide strategies tailored to your specific situation. Contact us for income tax planning if you are interested: www.cunninghamlegal.com/california-law-offices/contact/ You can also take a look at this webinar: www.cunninghamlegal.com/legal_webinars/can-income-smoothing-lower-your-taxes/
Currently, I am living in a big house, but looking into new, smaller house 🏠 with the big property tax I rather staying where I am. I will pass it down to my kids. In terms of food, if I like native foods where I came from, I got to go to the South Bay.
Hi Jim I very much enjoyed your TH-cam video on Why retiring to California might be a good idea! Very informative! I would love to move to Southern California, but the cost of purchasing a new home is allot more than where I live on Long Island NY 🏝 Are there property taxes reduction incentives for seniors 62 and over as a full time Californian resident? Thank you Guy De Feo Long Island NY
Michael, there is a disabled homeowners exemption that varies based on income and can save about $3000 per year in overall property tax. One alternative is to rent - and since you are 55+ you can rent in a community that serves the 55+ community.
@@harleyb.birdwhisperer it is my understanding that just being a veteran or a veteran with a disability will get you a property tax reduction. You have to be a veteran with a service-connected rated disability of 100% to get a property tax deduction. Isn't that true? And the exemption of tax is only on up to $169k(or 250k for low-income) of a property's value. It is unclear what the qualifications are to get the low-income level of disabled property tax deduction.
@@manp1039 I think the exact rules vary from county to county. Check at your Assessor’s office. They probably have a printed sheet they can hand you that explains it pretty clearly. Sit down and read it when they give it to you, so you can ask questions while you’re there. Good luck.
If we sell house income taxes will be due on the increase in value minus the $250,000 exemption per spouse. Since we have owned for 30 years this would be a massive federal and state tax bill.
Then don’t sell. Rent out your current home for cashflow profit and buy or Rent where you choose to live. Nothing says you have to own the home you live in. You can own rental properties and rent or own anywhere. Nothing forces you to sell that way.
I sold two duplexes in Modesto and opened a 1031 Exchange. The Marcus & Millichap agent in Miami was a lying cheat, misrepresenting the sellers who didn't even have title to the prospective property, ruined the exchange and when it fell through I had to pay capital gains to CA of more than $55,000. I was barely breaking even as a landlord. It's taken 3 years to recoup my losses and reinvest in a commercial property in Tennessee. In all, with Feds, CA and a year of income loss I am down about $200,000. In considering a return to CA my insurance company informed me they are not writing any policies in CA. My options are severely limited to return.
I would like to retire in Orange county, with the cost of housing, taxes both income and property, My million $ nest egg would be severely strained. I'm in Florida now, with no income tax. California politicians should have no taxes on retirees, all we do is spend and don't need a job, we produce jobs...
Sure thing! It's a very complex topic, so we have dedicated a whole playlist on this channel to Pop 19: th-cam.com/play/PLAoOpG0ejJDdbZcbpUSqTupNVvB6tG5M6.html&si=IBz2DTA78Py53zHL
Not necessarily, some California counties allow you to transfer your tax base... but not all counties have approved this tax basis transfer. You can contact our office for a full review of your estate and tax planning options: www.cunninghamlegal.com/california-law-offices/contact/
If you’re thinking of a move, think about more than California taxes. Take into consideration: Being near to family, friends, and community, Culture and activities, the weather and climate, and being near multiple, top-notch healthcare options. Here's an article to read further: www.cunninghamlegal.com/california-retirement-taxes/
Yes, doing a Roth conversion can impact IRMAA if on Medicare. When Modified Adjusted Gross Income (MAGI) hits a certain point, Medicare Part B and D premiums increase. Please contact us if you would like to be connected with our referral network to discuss your options: www.cunninghamlegal.com/california-law-offices/contact/
I am a California teacher who wants to retire to upper WA state to be close to Canada because I love Canada and because WA state does not have a state income tax. I own a modest house but am worried about interest rates right now. I will probably work one or two more years.
What people think they’re saving by no state income taxes, are set back with other fees, & expenses. It would maybe give you couple % savings at most. The moving expenses alone are $10,000 or more for out of state destinations.. Cheaper to rent a vacation property in your favor community in WA for a month or more and enjoy the BEST of both.
Washington does not have a typical individual income tax but does levy a 7.0% tax on capital gains income and has a gross receipts tax. Washington has an average combined state and local sales tax rate of 8.86% and also has a Death/Estate Tax, which is a graduated rate beginning at 10% and increasing to a maximum of 20% for estates greater than $2,193,000 in 2023. For more information on the benefits of retiring in California, check out our article: www.cunninghamlegal.com/california-retirement-taxes/ and feel free to contact us to be connected with our Trusted Financial Advisors to discuss a move for tax purposes.
@@nancypicchi9224 No because I have a supplemental acct to help me move. I don't like where I am living now. Owning two homes just doubles my expenses. State income tax in CA is expensive
Our home insurance increased from ~$2K a year to ~7K a year over 5 years. It is now our highest bill. And, I'll need to find another carrier as our is leaving the states. With the tax income shortfalls, can we be sure SSI will remain untaxed? There are Red areas in CA, but they have no ability impact on the legislation. CA has been taken over by crony capitalism - just look at the change in attitude on rooftop solar.
I never choose my friends for their political views. It’s hard to leave CA if the weather is much colder. Although I think our real estate prices are making it very hard for our youth not everyone has rich parents that can help them.
I completely understand where you're coming from- the beautiful weather in CA is hard to give up! You bring up an important point about real estate prices. It's indeed a challenge for the younger generation to afford homes in California. First-time homebuyer programs might be a good resource to look into, as these can offer some relief with down payments and mortgage terms. Here is a link to those resources: www.calhfa.ca.gov/homebuyer/programs/index.htm
States with the lowest property taxes include Hawaii, Alabama, and Nevada. But besides property tax, other things like home prices and different types of taxes can also affect how much you end up paying in total. In Hawaii, residents face a high state income tax rate, reaching 11%. Alabama's sales tax can reach up to 13.5% in some municipalities, a 2-5% income tax, and 6.5% corporate income tax. Nevada levies a sales tax with a statewide rate of 6.85% and local rates that can push the total sales tax up to 8.265% and has a gross receipts tax. Considering all of these factors is very important!
@@CunninghamLegal guam has no income tax for people who derive their income outside guam i.e. ss retirees You still have to file fed though. guam has a 2% sales tax and the lowest property taxes in the usa
There are ways to partially keep a parent’s property tax bases even if the child does not move into the house. Make an appointment to discuss with an attorney.
I cannot stress enough the access to adequate healthcare. The older we get, the more likely we are going to need to access local healthcare centers. And if you have a heart condition requiring stenting or open heart surgery… or stroke care, and the hospitals near you don’t offer these, your chances of survival (or a favorable outcome) goes waaaay down. People may disparage California for its taxes and some areas of increased crime, but good luck finding healthcare outside California that has its quality (i.e., Stanford being the penultimate stroke and cancer treatment center in the country, and don’t forget UCLA, UC Davis, and several other world renowned healthcare centers).
When I look at other parts of the country, that crosses my mind. I live really modestly in SoCal, but having access to good healthcare is really important. Might be nice to move to a remote, cheap place in PA or TN, but they can be healthcare deserts.
LOL, you do know that the legislators are pushing the best doctors out of CA? My doctor had to leave 2 yrs ago, now my husbands doctor is in Reno. So that trend is not good for CA
I live in Santa Cruz county and healthcare here in California I consider third world…It’s worth every penny in airfare to travel to the Mayo Clinic in Rochester Mn. Or Scottsdale AZ.
An updated episode on this topic would be interesting. The people who think California is great tend to isolate themselves from the population. California is a one party state, Democrat only. Republicans have been pushed to the inland’s and the last coastal conservative counties is soon to give way to the left. This is a pie in the sky perspective. The majority of Californians cannot afford a home and we are looking at a huge deficit due to spending more than it takes in just like the current Biden White House.
California diverse???? I have no restaurants except taco , hamburger, and pizza places. Sorry, California sucks now. Ive lived in cali since 1965. It's overcrowded, expensive, liberal and getting worse.
California has some serious culinary diversity, and the roots of California Cuisine can be traced back to four foundational pillars: Colonization, nearby Mexican territories, immigration, and agriculture. Even the places around you are diverse, even if they may seem common to you. Tacos are considered Mexican food, Hamburgers come from here in the US, and pizza is Italian! That's pretty diverse, when you really break it down. I'd encourage you to check out this web page on Visit California if you're looking for more diversity: www.visitcalifornia.com/experience/how-experience-californias-delicious-culinary-diversity/
@CunninghamLegal unless you live it the Metropolitan areas...it is a wasteland. I grew up in San Diego and traveled extensively in Mexico. The Mexican food here in ventura County is mediocre AT best. I'm well aware of history and immigration. I grew up in southern California, and it is not a place I would suggest anyone move to. Overrated, over taxed, overfilled!!!
Happy to have found you, just subscribed. Very happy to have been here 15 years from Colorado. Have also enjoyed Georgia and from Chicagoland. Just turned 70, about to retire from FT employment as my shop is too chaotic to navigate. Solo, very central located in 92081. About to get socked with assessments due to seriously deferred maintenance on the condo, but never in my life had such lovely neighbors here.Staying tuned. Reverse mortgage, your take?
Thanks for subscribing! Reverse mortgages can be a helpful tool in retirement for people. But, it depends on your circumstances... and if you do get a reverse mortgage, your living trust will likely need to be updated to include "HECM" (Home Equity Conversion Mortgage) language. If you need any help with updating your estate plan, don't hesitate to reach out: www.cunninghamlegal.com/california-law-offices/contact/
I would encourage you to read this blog on Retiring in California- there are lots of things to consider other than income when it comes to retirement! Link: www.cunninghamlegal.com/california-retirement-taxes/
@@CunninghamLegal You need income to keep a roof over your head and pay the bills. California is unaffordable for most people especially those on a fixed income. I'm thinking of retiring in South Carolina, Georgia, or Florida. The cost of living is much lower and the weather isn't that bad.
@@roadracer1584 There are plenty of factors like affordability and weather that you point out for being a resident of California that could be a cause for concern, but overall relative to other states, taxes in California are actually on the low side for some retirees. California has stable property taxes, no taxes on social security benefits, and no capital gains tax after one spouse dies. And if you’re living off your savings, that’s not taxable income in California. The overall cost of living is certainly a factor, but remember that cost of living is closely related to quality of life. Access to the best available health care is essential during retirement. A lot of people don’t want to sacrifice the things they love, along with the support of your family and trusted community, just to save a few bucks on the margins. But if you do decide to leave California, you should talk to your accountant and your estate attorney about your California plans so you don’t get any surprises at tax time!
@@CunninghamLegal Thanks for the information. I'll research more but I'm still leaning to the retiring in the southeast. Housing is much cheaper and the cost of living is much lower than CA. I can get a super nice house with lots of land for probably half of what I'd pay in CA. I haven't heard any bad things about the health care system in FL, GA, and SC. Keep in mind there are many retirees in these states. Not many retirees I know move to CA. They usually move out of CA. I'm sure you've heard of the Villages in FL. It's not my cup of tea but a lot retirees live there and love it. I've heard a lot of positive things about SC and GA. NC is also an option too. I feel sorry for CA. It's a paradise lost in my view. CA was nice several decades ago. Not any more regrettably.
Thank you for your informative video. I'm like you. A native Californian, 5th generation. Born in SF. I'm not going anywhere. Everyone I know lives here. It's expensive but I'll find a way to stay here with my children, grandchildren and my 98 year old father is still alive.
My dad grew up in San Francisco. He probably lived there from the mid 1920’s to the mid 1940’s. Maybe my dad or grandparents knew your grandparents. It’s a small world.
I thought I was reading about me when I saw your post. I'm a 5th generation, too, have lived in the Pacific Northwest three times and then came back to the Bay Area and Central Valley to care for my parents until they passed. I moved back to WA in 2021 to save money on taxes, utilities and general cost of living. Sounded like a good idea but I'm freezing here, ache all over from the cold, wet climate and am desperately lonely for my friends and the sun. This is not a welcoming place especially for Californians. I'm longing to return. I know, 20/20 hindsight. The takeaway is to know where and when you're happy and to let go of the constant searching for "home" which may only exist in memories.
@@1voiceworks just read your message and it resonated with me. I’m a native Californian and your sentiments are heard loud and clear. Thank you for reinforcing my desire to stay “home” in California when I retire.
There is another ‘tax’ that is too often ignored, called insurance. Some places you need it more than others and in those places either it costs a lot, or you can’t get it at all. It needs to be a consideration when making decisions. Even with a good policy, getting wiped out is no fun.
Absolutely, insurance is a vital form of protection, yet it's too often overlooked. In high-risk areas, it may be costly or unavailable, but there are some estate planning/asset protection strategies that may help. At Cunningham Legal, we offer expert advice in asset protection and estate planning, and we have the professional connections needed to provide you with comprehensive care. Professional guidance is essential in estate planning matters, and we're here to provide it. Visit our website at www.cunninghamlegal.com/california-law-offices/contact/ to connect with us and explore how we can guide you in the protection and transfer of multi-generational wealth.
@@CunninghamLegal So just what do you recommend when the water is up to the doorknobs?
I’m 71 retired in Northern California lived in CA for over 40 years ! Love CA hate the politics ! 🇺🇸
God bless, cheers from the Bay Area
Yeah, the terrain is great, the liberal politics not so much.
True 😮
I have been living in California for 38 years, can’t imagine moving to other states, perhaps I don’t like or afraid of the changes.
I'm retired and live in California. This year I paid $4600 in federal income tax but $200 in state income tax. My property tax is $2600 a year (because I have owned the same house for 36 years) and it can't increase more than 2% every year. That leaves me enough to travel and eat out. 16:55
That's great!
Same exact house bought now would cost you $15k+ a year in property taxes.
In northern CA no need for air conditioning or heating which a big expense saving !
That’s news to .me. I lived near Sacramento for 10 years. Plenty of 100-105 degree days all summer.
It definitely depends on where in California you live! The biodiversity here is truly incredible.
You're kidding. As a Californian from the Central Valley and Sacramento Valley, air conditioning in 110-117 degree weather is absolutely imperative. PG&E is a monopoly. When I lived in Rocklin, CA my monthly utility bill was more than $650 for an 1800 s.f. house. In winter it's cold! Yes, you need heat unless you can wear a coat inside all day long when it's 45-50 degrees outside.
Not only does California supply fresh vegetables and fruits throughout the US but also Canada as well. As for Florida orange juice, 40 percent of orange ships from California to Florida daily. I own my own transportation company so I know a thing or two about fruits and vegetables that California supports the rest of the nation and Canada.
Interesting! Thanks for the info. California is definitely an agricultural powerhouse.
I’m another California lifer, 78, and happy as a clam here in Silicon Valley. I’ve been in this old house for 35 years, just between the Apple spaceship and the Google-plex in Mountain View. I’ll leave in a bag on a gurney. We looked hard for ‘a place to retire to’, visited Florida, Arizona, Colorado, (Texas was a non-starter), Oregon, Washington, Nevada, New Mexico, and Utah. Nothing came close to what we have here.
It's great to hear about your love for California and your home in Silicon Valley! I admit that I’m biased, but I really believe that retiring in California is my best bet. Being near to family & friends, enjoying the sunny weather, being close to top-notch healthcare options, and the overall culture in CA is just unbeatable.
Thank you for sharing the truth (while hysterical ignrance screams). I have a modest pension and SS. My paid-off condo was purchased thirty years ago. I have no credit card debt or car loan. I'm a lifelong Californian. I love the quality of life. I gladly pay California taxes. I'm happily here forever.
Wonderful! Thanks for sharing.
I live in a 3 bedroom town home in SoCal. Property taxes are 4800 per year. My single family home on 10 acres in Michigan is 500 per year. Michigan is cheap, but damn its cold.
Absolutely! The state of Michigan's record low is -51°F!! (February 9, 1934 in Vanderbilt)
Thank you, very informative information. Property taxes are pushing me out of Calif but I’m born and raised here, but years ago I did relocate to Phoenix for 10 years and came back to Calif. You shared a lot to consider.
Glad you found it helpful!
That trip to Phoenix was expensive - had you stayed put, your property taxes (assuming you owned your house) would have been capped by prop 13. By going and coming back, you forfeited the time you had accrued, which probably has a lot to do with why you’re being driven out by property taxes now. Not enough people are aware of the ‘friction costs’ of moving around. Sorry for your troubles.
@@harleyb.birdwhispererhe could have left just not sold then returned to the same house
@@pearlperlitavenegas2023 Yes, he ‘could have’. However, his use of the term ‘relocate’ and the ten year term added to the fact he is complaining about property taxes running him out lead me to believe he did not hold any California housing during his absence. I have been wrong before though - I once thought I made a mistake.
@@harleyb.birdwhisperer Prop 13 in CA was by Republican Howard Jarvis in 1978. It has been under attack ever since by democrats. They chip away at it year after year. They want more and more of your money via taxation, basically stealing from your pocketbook and putting it in theirs. The worst part is what they want to spend it on. If you are enjoying the benefits of Prop 13, consider carefully who you vote for.
Great information👍
Thanks for a really good informative video!
You're welcome!
Thank you for the informative video. I am 65 and live in CA. I downsized 19 months ago after retiring and completed information correctly for a transfer of the base value assessment to my new smaller home and am still waiting for L.A. assessor to complete the process even though I have called many times. They are very slow in processing these transfers and I have had to pay the higher taxes while waiting.
wow, will they reimburse you the overpayments eventually?
@@gradylucas5265 I received the reimbursement about 6 weeks ago along with revised tax statements for the next tax payment. It took under 2 years to get the reimbursement and the revised tax statements. I think these transfers are difficult for the assessor's office to process and most likely have to be done without much automation. I am sure they are understaffed for the amount of work they have for handling the largest county in the U.S.
The property tax rate is lower in California than Texas or Florida, but the property value is higher. You are also protected from large tax increases in California if your property value goes up so you do not have a sudden leap in your property tax bill. Also California does not tax most food or medicine. Pretty fair.
I agree, California isn't so bad! Here's a blog we wrote about retiring in California: www.cunninghamlegal.com/california-retirement-taxes/
The rate is lower, true, BUT the property values are sky high even for an old(er) property. So, a smaller percent rate multiplied by a very large property valuation equals a large property tax bill. And here in the Bay Area it's not just your property tax bill because it includes all the bond issues from current to years ago that gets added onto your bill. Even with Prop 13 (1978).
Thank you for pointing out these benefits, however, I think it is better to mention cons of retirement in CA, which gives a completer picture to see if benefits outweigh the disadvantages.
Our pleasure, we appreciate sharing our knowledge to the community and create a safe space to grow. Those are excellent suggestions! It is always beneficial to see the pros and cons of any scenario. Be sure to subscribe and tune in weekly!
great advice!
Thanks for watching!
I have always enjoyed/love California but like you said, each situation is unique. For me, the # 1 and only thing is the weather and in particular, the 6-mile line from the ocean in LA down to SD. There is always a huge house cost to that 6-mile line, but I could afford it if I had to. So why am I still in Orlando, FL? Because I am retired and still always get to travel for 2-3 months in the summer and that is the time in Florida that is miserable weather-wise. So, for now, I would rather live with the best taxes and good to decent weather for 8 months but get out of this place for 3-4.
In the 6-mile California situation, I would still want to travel in the summer so the times when I could get the most ROI out of the weather, I would not be there anyway. Update to say the current housing cost in Florida has gone crazy the last two years, so if I did not already own my home, I would not purchase a property in any of the major cities/suburbs of Florida. I say sell my house and move to the Mediterranean coast of Spain so we can travel year-round in Europe - ha. Anyway, I am a huge California fan, and for anyone considering moving from or to there, spend the time to do these tax calculations because if it makes sense, California is hard to beat!
what is this 6-mile line?
@@MoneySavingVideos -It is my own made-up line (apologize for this) that signifies what I think is perfect weather at the beach. That ocean/air weather effect lessens as you move inland, so I just say 6 miles and in towards the ocean.
@@edtravelbug I live in that 6 mile line and the weather is pretty good year around. Not too hot and not too cold. Thank you.
@@MoneySavingVideos I can't tell you how much time I have spent in that area over the last 30 yrs & IMO it truly is magical weather (the morning marine layer that some say is cold does not bother me at all). You are very lucky my friend & once again I really enjoy the winter/spring weather and activities in Orlando, FL but would not stay here if I was not able to travel/live someplace else from June-September - ha.
Great content! Do you have a video on how to avoid federal taxes on Social security and pension income?
We don't have a specific video on that, but here are some videos on similar topics: www.cunninghamlegal.com/rethink-your-retirement-planning-strategy/ www.cunninghamlegal.com/can-income-smoothing-lower-your-taxes/
There is saying in retirement !
There’s a GO GO YEARS , THE SLOW GO YEARS ,AND NO GO YEARS 😂
Absolutely!
I’m in a house here in NC that would be over a million dollars in CA. Born and raised in CA. My house payment including tax and insurance is about 1k less than rent on a one bedroom / bath/ carport / no air conditioner in Costa Mesa where i last lived in CA. Gasoline has been between $2.95-$3.19/g for the year I have been here. Utilities are 1/4 what they are in CA and that is with about $150 per month living just outside the City. If we ever incorporate here that will hopefully go away. On City water, sewer, electric. So no septic or propane. Natural gas and electric. Weather is similar to CA except for the humidity and it is beautiful here. I dont dare live 5 minutes from the beach as i did in CA because of hurricanes but an hour away from ocean and mountains with a lot of woods and winding roads that remind me of CA in the 1960’s is something i enjoy driving on. We still have a rush hour here between where i live and the capital instead of mind numbing traffic 24/7. I am fine staying where i moved to. (Edit) Food options are improving, because of the numerous farms we also eat fresh here, we have new laws relaxing some the alcohol hassles. Something with taxes here: While the sales/and other taxes are lower (income tax coming down yearly) they do tax food at various levels but low tax and they tax service - i had to adjust to that.
No social security tax, but they do tax pension income.
Is there anything beneficial about how the state handles assets regarding Medicaid, especially if a person might need nursing care?
There are several strategies that can be used to protect assets, which is covered on our website. For more information, please review our practice area page on elder law: www.cunninghamlegal.com/california-legal-services/elder-law/
My home property tax in California is already $15,000. Rental income and RMD will have us at the at the state income rate of 10% forever.
Advanced estate planning could potentially help manage these costs, depending on your circumstances. Strategies such as trusts or tax-efficient investment accounts might help protect your assets and reduce the tax burden. Consulting with an estate planning attorney could provide strategies tailored to your specific situation. Contact us for income tax planning if you are interested: www.cunninghamlegal.com/california-law-offices/contact/
You can also take a look at this webinar: www.cunninghamlegal.com/legal_webinars/can-income-smoothing-lower-your-taxes/
Currently, I am living in a big house, but looking into new, smaller house 🏠 with the big property tax I rather staying where I am. I will pass it down to my kids. In terms of food, if I like native foods where I came from, I got to go to the South Bay.
Hi Jim
I very much enjoyed your TH-cam video on Why retiring to California might be a good idea!
Very informative! I would love to move to Southern California, but the cost of purchasing a new home is allot more than where I live on Long Island NY 🏝
Are there property taxes reduction incentives for seniors 62 and over as a full time Californian resident?
Thank you
Guy De Feo
Long Island NY
Michael, there is a disabled homeowners exemption that varies based on income and can save about $3000 per year in overall property tax. One alternative is to rent - and since you are 55+ you can rent in a community that serves the 55+ community.
Are you a vet? With a disability? That will give your property taxes a haircut here in CA.
@@harleyb.birdwhisperer it is my understanding that just being a veteran or a veteran with a disability will get you a property tax reduction. You have to be a veteran with a service-connected rated disability of 100% to get a property tax deduction. Isn't that true? And the exemption of tax is only on up to $169k(or 250k for low-income) of a property's value. It is unclear what the qualifications are to get the low-income level of disabled property tax deduction.
@@manp1039 I think the exact rules vary from county to county. Check at your Assessor’s office. They probably have a printed sheet they can hand you that explains it pretty clearly. Sit down and read it when they give it to you, so you can ask questions while you’re there. Good luck.
If we sell house income taxes will be due on the increase in value minus the $250,000 exemption per spouse. Since we have owned for 30 years this would be a massive federal and state tax bill.
Kurt, this has to do with Prop 19/Prop 13. Please contact our firm if you'd like our assistance with this.
Then don’t sell. Rent out your current home for cashflow profit and buy or Rent where you choose to live. Nothing says you have to own the home you live in. You can own rental properties and rent or own anywhere. Nothing forces you to sell that way.
I sold two duplexes in Modesto and opened a 1031 Exchange. The Marcus & Millichap agent in Miami was a lying cheat, misrepresenting the sellers who didn't even have title to the prospective property, ruined the exchange and when it fell through I had to pay capital gains to CA of more than $55,000. I was barely breaking even as a landlord. It's taken 3 years to recoup my losses and reinvest in a commercial property in Tennessee. In all, with Feds, CA and a year of income loss I am down about $200,000. In considering a return to CA my insurance company informed me they are not writing any policies in CA. My options are severely limited to return.
I was born in Ireland and raised in California
I would like to retire in Orange county, with the cost of housing, taxes both income and property, My million $ nest egg would be severely strained. I'm in Florida now, with no income tax. California politicians should have no taxes on retirees, all we do is spend and don't need a job, we produce jobs...
What about proposition 19
Can you explain this please
Sure thing! It's a very complex topic, so we have dedicated a whole playlist on this channel to Pop 19: th-cam.com/play/PLAoOpG0ejJDdbZcbpUSqTupNVvB6tG5M6.html&si=IBz2DTA78Py53zHL
I read that you have to move to the same county to to keep the same property tax
Not necessarily, some California counties allow you to transfer your tax base... but not all counties have approved this tax basis transfer. You can contact our office for a full review of your estate and tax planning options: www.cunninghamlegal.com/california-law-offices/contact/
CA is my favorite place thus far
That's great! Thanks for leaving a comment.
Food, gas and merchandise is the same price in Reno, as CA. Houses are a bit cheaper, and there is no state tax.
If you’re thinking of a move, think about more than California taxes. Take into consideration: Being near to family, friends, and community, Culture and activities, the weather and climate, and being near multiple, top-notch healthcare options. Here's an article to read further: www.cunninghamlegal.com/california-retirement-taxes/
@@CunninghamLegal💯
Can Roth Conversions also increase your Medicare IRMAA my understanding is based on income.
Yes, doing a Roth conversion can impact IRMAA if on Medicare. When Modified Adjusted Gross Income (MAGI) hits a certain point, Medicare Part B and D premiums increase. Please contact us if you would like to be connected with our referral network to discuss your options: www.cunninghamlegal.com/california-law-offices/contact/
Great Video. What are your thoughts on the current political climate surrounding gutting Prop 13 in CA
We did a recent video on this topic! Please check it out: th-cam.com/video/VSJvLkUn8To/w-d-xo.html
I am a California teacher who wants to retire to upper WA state to be close to Canada because I love Canada and because WA state does not have a state income tax. I own a modest house but am worried about interest rates right now. I will probably work one or two more years.
Think about buy a new place now ,,,,
Price of property is going up and up $$$$$…..
WA is cold ….
I love ❤️ California.
@@tuyetvo4353 I can't move now. Not until next year or the year after.
What people think they’re saving by no state income taxes, are set back with other fees, & expenses. It would maybe give you couple % savings at most. The moving expenses alone are $10,000 or more for out of state destinations.. Cheaper to rent a vacation property in your favor community in WA for a month or more and enjoy the BEST of both.
Washington does not have a typical individual income tax but does levy a 7.0% tax on capital gains income and has a gross receipts tax. Washington has an average combined state and local sales tax rate of 8.86% and also has a Death/Estate Tax, which is a graduated rate beginning at 10% and increasing to a maximum of 20% for estates greater than $2,193,000 in 2023. For more information on the benefits of retiring in California, check out our article: www.cunninghamlegal.com/california-retirement-taxes/ and feel free to contact us to be connected with our Trusted Financial Advisors to discuss a move for tax purposes.
@@nancypicchi9224 No because I have a supplemental acct to help me move. I don't like where I am living now. Owning two homes just doubles my expenses. State income tax in CA is expensive
Our home insurance increased from ~$2K a year to ~7K a year over 5 years. It is now our highest bill. And, I'll need to find another carrier as our is leaving the states.
With the tax income shortfalls, can we be sure SSI will remain untaxed?
There are Red areas in CA, but they have no ability impact on the legislation. CA has been taken over by crony capitalism - just look at the change in attitude on rooftop solar.
I never choose my friends for their political views. It’s hard to leave CA if the weather is much colder. Although I think our real estate prices are making it very hard for our youth not everyone has rich parents that can help them.
I completely understand where you're coming from- the beautiful weather in CA is hard to give up! You bring up an important point about real estate prices. It's indeed a challenge for the younger generation to afford homes in California. First-time homebuyer programs might be a good resource to look into, as these can offer some relief with down payments and mortgage terms. Here is a link to those resources: www.calhfa.ca.gov/homebuyer/programs/index.htm
which states have lower property tax?
States with the lowest property taxes include Hawaii, Alabama, and Nevada. But besides property tax, other things like home prices and different types of taxes can also affect how much you end up paying in total. In Hawaii, residents face a high state income tax rate, reaching 11%. Alabama's sales tax can reach up to 13.5% in some municipalities, a 2-5% income tax, and 6.5% corporate income tax. Nevada levies a sales tax with a statewide rate of 6.85% and local rates that can push the total sales tax up to 8.265% and has a gross receipts tax. Considering all of these factors is very important!
@@CunninghamLegal guam has no income tax for people who derive their income outside guam i.e. ss retirees You still have to file fed though. guam has a 2% sales tax and the lowest property taxes in the usa
Good Common sense advice.
Thanks!
Is there a way to keep a parent's property tax base if the heir does not live in the house (use it as a rental or leave it empty)?
There was. But it was changed with the last ballot. See prop 19.
Short of a time machine, not anymore.
There are ways to partially keep a parent’s property tax bases even if the child does not move into the house. Make an appointment to discuss with an attorney.
Who in the living hell would want to retire in the shit state of Commiefornia. Retiree and California is like oxy moron.
I cannot stress enough the access to adequate healthcare. The older we get, the more likely we are going to need to access local healthcare centers. And if you have a heart condition requiring stenting or open heart surgery… or stroke care, and the hospitals near you don’t offer these, your chances of survival (or a favorable outcome) goes waaaay down. People may disparage California for its taxes and some areas of increased crime, but good luck finding healthcare outside California that has its quality (i.e., Stanford being the penultimate stroke and cancer treatment center in the country, and don’t forget UCLA, UC Davis, and several other world renowned healthcare centers).
When I look at other parts of the country, that crosses my mind. I live really modestly in SoCal, but having access to good healthcare is really important. Might be nice to move to a remote, cheap place in PA or TN, but they can be healthcare deserts.
LOL, you do know that the legislators are pushing the best doctors out of CA? My doctor had to leave 2 yrs ago, now my husbands doctor is in Reno. So that trend is not good for CA
I live in Santa Cruz county and healthcare here in California I consider third world…It’s worth every penny in airfare to travel to the Mayo Clinic in Rochester Mn. Or Scottsdale AZ.
My father’s cancer has been in remission for 3 years now due to Duke University out here in NC
@@hekterr6677I agree. Much better health care in other states.
Yeah NO!
Food is taxed!
Weather alone is worth a million. I live in OC and most adults over 50 are Republican by the way. Once again weather alone is worth so much.
The weather here in CA sure is unbeatable!
"I'm 53 this year. I think?" And yet the cognitive decline is already showing! LOL.
Blueberries 😉
Do pump gas now, in Oregon
Really
Nope, not 2 weeks ago even.
An updated episode on this topic would be interesting. The people who think California is great tend to isolate themselves from the population. California is a one party state, Democrat only. Republicans have been pushed to the inland’s and the last coastal conservative counties is soon to give way to the left. This is a pie in the sky perspective. The majority of Californians cannot afford a home and we are looking at a huge deficit due to spending more than it takes in just like the current Biden White House.
We plan to cover this topic in April. We would love to have you visit the live session!: www.cunninghamlegal.com/retiring-in-california-pros-and-cons/
CA, the ultimate gilded sun shiny cage
It sure seems like that sometimes. Check out our recent video: th-cam.com/video/WyKHDIXA7wE/w-d-xo.html
😅😷
👩🏻✈️🇺🇸
California diverse???? I have no restaurants except taco , hamburger, and pizza places. Sorry, California sucks now. Ive lived in cali since 1965. It's overcrowded, expensive, liberal and getting worse.
California has some serious culinary diversity, and the roots of California Cuisine can be traced back to four foundational pillars: Colonization, nearby Mexican territories, immigration, and agriculture.
Even the places around you are diverse, even if they may seem common to you. Tacos are considered Mexican food, Hamburgers come from here in the US, and pizza is Italian! That's pretty diverse, when you really break it down.
I'd encourage you to check out this web page on Visit California if you're looking for more diversity: www.visitcalifornia.com/experience/how-experience-californias-delicious-culinary-diversity/
@CunninghamLegal unless you live it the Metropolitan areas...it is a wasteland. I grew up in San Diego and traveled extensively in Mexico. The Mexican food here in ventura County is mediocre AT best. I'm well aware of history and immigration. I grew up in southern California, and it is not a place I would suggest anyone move to. Overrated, over taxed, overfilled!!!
Happy to have found you, just subscribed. Very happy to have been here 15 years from Colorado. Have also enjoyed Georgia and from Chicagoland. Just turned 70, about to retire from FT employment as my shop is too chaotic to navigate. Solo, very central located in 92081. About to get socked with assessments due to seriously deferred maintenance on the condo, but never in my life had such lovely neighbors here.Staying tuned. Reverse mortgage, your take?
Thanks for subscribing! Reverse mortgages can be a helpful tool in retirement for people. But, it depends on your circumstances... and if you do get a reverse mortgage, your living trust will likely need to be updated to include "HECM" (Home Equity Conversion Mortgage) language. If you need any help with updating your estate plan, don't hesitate to reach out: www.cunninghamlegal.com/california-law-offices/contact/
California is a beautiful state and great place to live if you like outdoor activities but unaffordable for most on modest incomes.
I would encourage you to read this blog on Retiring in California- there are lots of things to consider other than income when it comes to retirement! Link: www.cunninghamlegal.com/california-retirement-taxes/
@@CunninghamLegal You need income to keep a roof over your head and pay the bills. California is unaffordable for most people especially those on a fixed income. I'm thinking of retiring in South Carolina, Georgia, or Florida. The cost of living is much lower and the weather isn't that bad.
@@roadracer1584 There are plenty of factors like affordability and weather that you point out for being a resident of California that could be a cause for concern, but overall relative to other states, taxes in California are actually on the low side for some retirees. California has stable property taxes, no taxes on social security benefits, and no capital gains tax after one spouse dies. And if you’re living off your savings, that’s not taxable income in California. The overall cost of living is certainly a factor, but remember that cost of living is closely related to quality of life. Access to the best available health care is essential during retirement. A lot of people don’t want to sacrifice the things they love, along with the support of your family and trusted community, just to save a few bucks on the margins. But if you do decide to leave California, you should talk to your accountant and your estate attorney about your California plans so you don’t get any surprises at tax time!
@@CunninghamLegal Thanks for the information. I'll research more but I'm still leaning to the retiring in the southeast. Housing is much cheaper and the cost of living is much lower than CA. I can get a super nice house with lots of land for probably half of what I'd pay in CA. I haven't heard any bad things about the health care system in FL, GA, and SC. Keep in mind there are many retirees in these states. Not many retirees I know move to CA. They usually move out of CA. I'm sure you've heard of the Villages in FL. It's not my cup of tea but a lot retirees live there and love it. I've heard a lot of positive things about SC and GA. NC is also an option too. I feel sorry for CA. It's a paradise lost in my view. CA was nice several decades ago. Not any more regrettably.
@@roadracer1584One word for you: Idalia. Next week, something that starts with a ‘J’ or ‘K’ or ‘L’.