I'm wondering why people tell me it's cheaper for me to live in Sun City than California. I just checked and according to the tax Foundation, Arizona has the second highest taxes (by combining state and sales tax). I know the property taxes are cheaper in Sun City, but I'm wondering what other things people are talking about. Do you mean the cost of housing, which of course is cheaper than in California, but that all depends on when you bought in California. I can't see how my expenses will decrease much.
I was comparing state taxes not local. I had thought no state tax too in AZ but apparently that's wrong. Sales tax in not low either. read this http://cronkitenewsonline.com/2012/02/arizona-has-second-highest-combined-sales-tax-rate-in-the-nation/
Sun City is not on the list with the highest local, but still the sales tax and state tax are there. Social Security is not taxed but its not taxed in CA either.
It's a great question and one that need be looked at from more than just a tax perspective. It also is different for each of us based on what we will be doing with our time. If you are still working and traveling outside the walls it becomes less so than if you are able to spend your days retired. Obviously taxes are an issue and each state has found ways to get their share. Short of a couple of states that have no state taxes, you will always be paying the piper in one form or another. The real cost savings comes from comparing being retired and living in California or Minnesota to Sun City. Years back, the Peoria school district invited us to leave their fast growing school district. They couldn't pass bond referendums and consequently we have no local school taxes. That of unto itself is significant because almost no matter where you are coming from, they make up a significant part of your property tax bill. The rec center fees and amenities are where the real savings start to stack up. Retire almost anywhere and try and play three rounds of golf a week and you'll be spending a fortune. Rates here are more than reasonable and if you play a lot there are even more savings available. And of course the $450 yearly fees are a plus when you consider the 7 centers with fitness rooms, swimming pools, tennis courts, pickleball etc. Then consider the 125 clubs with yearly dues of $5 to $10 and each bringing distinct options for retirees (and those yet working) to enjoy themselves. How about the fact we can jump in a golf car and get to where we want to be and in the worse case scenario you have to take out your car, max 7 miles to get there. Restaurants in Sun City are geared to seniors. Lower prices, smaller portions and early bird specials are all part of how we live. Of course if you go over 91st avenue and Bell Road and eat at Applebee's you will find prices just like back home. Our car insurance is lower here and food costs are less than other areas of the country. The biggest difference for me though is the fact we live in a paradise where every day is the weekend (if you are retired). We used to take a yearly cruise to escape Minnesota but with having the chance to live in a giant playground for kids, travel is less important...every day is like being on vacation. Don't get me wrong, for those who like/love to travel, they do. It used to be a priority, now it is a luxury and one I don't feel I have to do to get away from it all. And let's not forget the concept of a community where many of us spend portions of our days giving back to keep this way of life alive. Ultimately all of those volunteer hours returns our investment several fold by keeping costs down and participation up. Simply put it is a different way to live; not for everyone that's for sure...but if you want a life where you help maintain it, you need take some degree in the ownership and the outcomes.
I didn't mean that it was not worth the money for what you can enjoy at Sun City. If I felt that way I wouldn't want to move there. I know the amenities are a bargain and the place is great. I was just curious when a few people told me how much cheaper it is, what they might have meant. Perhaps it is the food, car insurance and all else you mention. Somehow I had it in my mind (not sure why I thought this) that taxes were low and I was a bit surprised to learn that's not the case.
I agree. Good Post Soon Sun City Original will have people begging to buy. We are the BEST OF THE BEST.
We came from northern CA almost 10 years ago and at that time the tax burden was far less than CA. I believe you should move where you want and not just based upon the tax rates because those are moving targets. My husband and I felt that a retirement home with lower property taxes was high on the list as we can control how much we spend on some things other than food of course. We have a daughter in Portland Oregon who wants us to move there. It is tempting but we would rent rather than own there. They have no sales tax, which is also tempting, but the roof over our heads would be far more. We have also looked at Alabama where property tax is very low...but it is Alabama. I never get bored here. But the truth is..if we could have retired in northern CA and lived as well as we do here, I would still be in CA. I miss it every day.
Thanks Fiona. My question was really based on determining what will be my cost when I move there, not actually if it is a value for the money. My budget might be less than some other people who live there now as I'm not getting one of those good pensions. I've saved. I don't mind leaving Los Angeles really. I've lived in Oregon, owned a house there once that I thought I would retire in, but I changed my mind and sold it. I decided a retirement community would be better all around. And although I love rain I'm also looking forward to the desert landscape.
We live in Colorado 6 months and Sun City 6 months, so that is the only comparison I can make. The biggest differences are the cost of housing and RE taxes. And for us it is a huge difference. I finances dictated that we needed to sell one house it would have to be the CO house. I have figured our living expenses and living in Sun City is about 2/3 the cost of living in CO.
My cell doesn't want to let me edit my post. So.... The above estimate does not include the cost of our homes..... I did the living expenses estimates as if the homes were equal in value. We have no mortgage on either one.
I suppose the only way a person really knows is to give it a try. Everyone's expenses/income are different. It's hard not to feel concerned about it and try to find out as much as I can to relieve a bit of anxiety. Maybe that's not possible. But I know it will be less for me there than here, just not sure how much. I've always been an adventurer anyway so I look at it that way too. I love an adventure.
I think overall our utility rates are far less than northern CA, but we tax food here and I hate that we do. I grew up in Los Angeles and miss the 1952 L.A. Could not deal with the traffic anymore. Bless your heart for hanging in there. We took a slamming after the crash in 08 as did many soon to retire. We are crawling towards SS and will see a huge reduction in what we are getting due to our income tanking the last 10 years. So we punt and here we are. We searched all over the U.S and even outside the U.S and felt this was the best bang for our dollar right here. Some of our sales taxes the voters approved over the years have gone away now, but some still remain. I think and hope you will be just fine here but come and explore first. We made seven trips from CA to find our first spot and so glad we did take the time to look first.
I don't think AZ taxes are particularly high. The state of Washington does not have any state tax but taxes on everything are higher than AZ. I think I mentioned before that you get $25 back just for filing even if you do not owe anything.
