Low-tax retirement spots across the border
A stronger Canadian dollar has many people thinking about relocating in retirement, in hopes of enjoying milder weather and generally lower expenses.
And, fueled by sliding home prices and a certain familiarity, the U.S. Sunbelt is always high on most snowbirds’ lists.If you’re only going for a winter break, even one that lasts a couple of months, then U.S. taxes aren’t a great concern. But, if you see yourself staying longer than that, then you better start paying attention, particularly when you consider that states with low income taxes often have higher sales or property taxes, and vice versa.
For a state-by-state tax guide, including a rundown on how various types of retirement income are taxed, here's an interactive map that provides a snapshot of what the total annual state and local tax burden – income, property and sales taxes – would be in the capital of each state for a retired husband and wife, both of whom are 65.
Consider, of course, that most Canadian retirees abroad receive their income in loonies while their expenses are in a foreign currency. Managing this currency risk is one of the most difficult elements of living abroad, and it's likely to be a growing issue.
Like to compare notes with those who have already made the cross-border move or have even left the continent altogether? Browse the forums at travel site Canuckabroad.com.
Tell us: Do you see yourself retiring across the border?By Gordon Powers, MSN Money
Posted by: r van Oldenbarneveld | Nov 29, 2009 12:42:22 PM
We will retire in the Philippines,it is much cheaper there,people from all over the world are retiring there.We have build there right on the ocean,cost and living is 75% cheaper,then U.S or Canada.
Posted by: Mike | Dec 23, 2009 12:44:16 AM
Philippines 75% cheaper huh? What do you call those giant waves again? - the ones being triggered all the time in that area by earthquakes out at sea? hmmmm
Posted by: Victor Fenech | Jan 3, 2010 3:27:04 PM
We owned a mobile home in Florida since 1983. We saw our property taxes jump every year. We pay three times the property taxes as my neighbor does, pay telephone all year, when on vacation the rate is $4.50 a month, but we also pay between $12 or $17 monthly for taxes and other services. We pay about $43.50 a month for water services that we do not user in the summer. Before anybody decides to move to Florida make sure you find out all the particulars. We can't even get home insurance on our Mobile, the only on we can get is Citizens and they jack up the rates as they please. One thing in our favor our neighbors are wonderful and a pleasure to associate with.
Posted by: Bob Rudley | Jan 8, 2010 6:17:09 PM
Why Victor would you want to live in a trailer and worry about a water bill of $43.00 with the only benefit of running from the cold.
Not only did you not do your homework about being a snowbird in the Evil Empire of the USA you cannot afford it.
I just turned 65 and can retire to almost any location. My family has been instructed that if I become a constantly bitching senior like you seem to be.... to put me down.
Stay home where you can afford it and use the money that you would have spent to live in a trailer to take trips to warm locations around the world.
You might learn what is going on in the world and enjoy and learn about different cultures.
Spend some time with your family and friends instead of living in a trailer in a not to hospitable country and bankrupt country.
Of course with all your bitching you family may enjoy seeing your tail lights at the first sign of snow.
Posted by: Jim Gardner | Jan 11, 2010 12:17:04 PM
Bob Rudely try to cut down one the caffeine and maybe your narrow minded views of other countries wll expand. Enjoy your retirement
Posted by: Anne | Jan 13, 2010 11:40:07 AM
Have you ever considered retiring in Mexico? Canadians who are expats pay only 15% taxes. The weather here is wonderful, the people great and the cost of living much better than in Canada
Posted by: Margaret Smith | Jan 15, 2010 9:04:40 AM
Jim, Jim you could have given poor Bob better information than that with all your experience in travel and Bob why don't you ask poor Victor to come and stay with you as obviously he can only afford a trailer but still wants to enjoy retirement in a sunny location. As with all retirees cost of living increases and there is nothing worse than a owning a house with its increasing taxes and maintenance so a trailer sounds pretty good to me. I'll be staying in my Ottawa location and turning up the heater mmmm It's nice and cosy in Canada.
Posted by: Ralph Rack | Jan 16, 2010 9:45:09 AM
I just retired from the scandalous MFDA scenario. People should learn quickly that by age 30 they should have a relationship with an IBC somewhere in a jurisdiction that HAS NO TAX TREATY WITH CANADA. The USA is probably the least safe place to invest. Residing in a warmer NON EU. NON US. AND NOT IN CANADA WILL ALLOW YOU LESS COSTLY LIVING, GREAT MEDICAL SERVICES BETTER RETURNS ON INVESTMENTS and in most cases no income tax. These countries are glad for you to retire there and SPEND YOUR MONEY THERE as a preferences to taxing you to a point where you don't have money to spend. Prominent, professional IBC, SA and Private Foundation directors and counsellors can guide you through the system. These people are less expensive than MUTUAL FUND and or BROKERAGE FEES and in markets not accessible to CANADIANS living in CANADA. If you get started around 30 retirement should be early, healthy and financially superior.
Posted by: Rhonda | Feb 1, 2010 2:56:41 PM
My husband and I went for a trip to look for a retirement destination 5 years ago. Hoping to see New Mexico, Texas and Arizona. We never made it out of Corpus Christi, Texas. North Padre Island with its endless beaches and fishing in the surf that one only dreams of encouraged us to take root here every 6 months.
Cost of living is a third of what one pays in Florida plus there is an active lifestyle here in the west. Very similar to the energy one feels when in Calgary!
We love being Texas RedNecks! Plus we are called Winter Texans(not Snowbirds) and the locals treat us like gold. They appreciate what we bring to their economy.
We are Trailer Park Trash and dam proud of it!!
Posted by: Denis | Mar 1, 2010 5:41:43 PM
Wow, everyone seems a little upset with wintering south of the border. I think Rhonda has found her niche and loves it as most retired people do. The caution I would give to most is to not buy anything more than a Value of $60,000. See your local accountant before you fall in love with one of those beautiful communities in Arizona, Florida or California. If your budget is "pinched" like Victors, look at Renting for 6 months. You still get the great enjoyment of an Adult oriented community, and hand the keys back with no concerns after your holiday is over. The Phillipiines are lovely, but what about the Grandkids? Want to say the heck with Canada and the damn taxes, Lake Chapatta, Mexico is a wonderful spot. Just make sure your money isn't in a Bank there, keep it in a Bank in the U.S. and draw monthly expenses from there. Warm is wonderful, just do your due dilligence before you decide to take up roots elsewhere. If it's the U.S., don't leave home with that Medical Insurance Enjoy!!