Yep Massachusetts sure is a hellish nightmare.
Massachusetts:
2010 Budget $43,421,957,000.00
Link
Per
person spending - $6682.39
Florida:
2010 Budget $66,518,023,862
Link
Per
person spending - $3629.24
Just to be fair and balanced:
Retirement Living - Taxes by State: Kansas - New Mexico
FLORIDA
Sales Taxes
State Sales Tax: 6% (food, prescription and non-prescription drugs exempt). There are additional county sales taxes which could make the combined rate as high as 9.5%.
Gasoline Tax: 34.5 cents/gallon
Diesel Fuel Tax: * 29.8 cents/gallon
(Local taxes for gasoline vary from 5.5 cents to 17 cents, plus there is a 2.07% gasoline pollution tax.)
Cigarette Tax: 33.9 cents/pack of 20 ($1.00 surcharge added on each pack in 2010)
Personal Income Taxes
No state income tax
Retirement Income: Not taxed. Starting in 2007, individuals, married couples, personal representatives of estates, and businesses are no longer required to file an annual intangible personal property tax return reporting their stocks, bonds, mutual funds, money market funds, shares of business trusts, and unsecured notes. For details, click here.
Property Taxes
All property is taxable at 100% of its just valuation. In certain counties and cities homeowners 65 and over can receive a homestead exemption from property tax of $25,000 if their household income, as defined by the federal tax code, is at or below $27,539 (single) or $30,917 (couples) per year (2008 figures). The income limitation is adjusted each year based on the cost of living index. In many instances the definition of household income excludes Social Security. Permanent residents may also be entitled to a homestead exemption regardless of age. Residents 65 and older are entitled to both exemptions ($50,000). The senior citizen's homestead exemption applies only to tax millage levied by the county or city, and does not apply to millage of school districts or other taxing authorities. The homestead exemption for all residents applies to all property taxes, not just city and county taxes. Annual increases in the assessment of homestead property are limited to 3% of the prior year's assessed value, or if lower, the percentage change in the Consumer Price Index for the prior, as long as there was no change in ownership. A 2006 law provides a property tax discount on homestead property owned by eligible veterans. To be eligible, a veteran must have an honorable discharge from military service, be at least 65 years old, be partially disabled with a permanent service connected disability all or a portion of which must be combat-related, and must have been a Florida resident at the time of entering military service. This discount is in addition to any other exemptions veterans now receive.
A 2007 law allows local governments to give those age 65 and above - with low incomes - an increased homestead exemption. Cities and counties have the option of doubling an existing homestead exemption on primary owner-occupied homes from $25,000 to $50,000. To qualify, taxpayers must have an annual income of $20,000 or less.
For more details on property taxes, click here, then find the link for the county property appraiser for the county in question. For more information on Florida property tax exemptions, click here.
Inheritance and Estate Taxes
There is no inheritance tax and only a limited estate tax.
MASSACHUSETTS
Sales Taxes
State Sales Tax: 6.25% (food; prescription drugs; fuel costs; gas, oil, electricity; clothing costing up to $175, are exempt). For a complete list, click here.
Gasoline Tax: 23.5 cents/gallon
Diesel Fuel Tax: 23.5 cents/gallon
Cigarette Tax: $2.51/pack of 20
Personal Income Taxes
Tax Rate Range:Flat rate of 5.3% of federal adjusted gross income
Personal Exemptions: Single - $4,400; Married - $8,800;
Dependents - $1,000
Standard Deduction: None
Medical/Dental Deduction: Federal amount
Federal Income Tax Deduction: None
Retirement Income Taxes: Social Security, civil service, state/local government pensions are exempt. Pension income from other state or local governments that do not tax pension income from Massachusetts public employees is exempt from Massachusetts taxable income.
Retired Military Pay: Not taxed. Military Disability Retired Pay: Retirees who entered the military before Sept. 24, 1975, and members receiving disability retirements based on combat injuries or who could receive disability payments from the VA are covered by laws giving disability broad exemption from federal income tax. Most military retired pay based on service-related disabilities also is free from federal income tax, but there is no guarantee of total protection.
VA Disability Dependency and Indemnity Compensation:VA benefits are not taxable because they generally are for disabilities and are not subject to federal or state taxes.
Military SBP/SSBP/RCSBP/RSFPP: Generally subject to state taxes for those states with income tax. Check with state department of revenue office.
Property Taxes
Massachusetts does not provide for a general homestead exemption but does have a Homestead Act. The Homestead Act permits a homeowner who occupies a house as his/her principal residence to shield up to $500,000 in equity in that house from creditors. By simply filing a Declaration of Homestead with the appropriate Registry of Deeds, a homeowner may be able to protect his/her residence from the claim of a future creditor. The Homestead Act permits only one spouse to file for the equity protection if each has an ownership interest in the home. The protection offered to the disabled and the elderly is even more comprehensive because it allows a husband and wife who own their own home to each file for the $500,000 equity protection. Click for details.
Massachusetts also has a circuit breaker program that offers a real estate tax credit for persons age 65 and older. Certain taxpayers may be eligible to claim a refundable credit on their state income taxes for the real estate taxes paid during the tax year on the residential property they own or rent in Massachusetts that is used as their principal residence. If the credit due the taxpayer exceeds the amount of the total income tax payable for the year by the taxpayer, the excess amount of the credit will be refunded to the taxpayer without interest. For tax year 2008, the maximum credit allowed for both renters and homeowners is $930. To be eligible for the credit for the 2008 tax year; the taxpayer or spouse, if married filing jointly, must be 65 years of age or older at the close of the 2008 tax year; the taxpayer must own or rent residential property in Massachusetts and occupy the property as his or her principal residence; the taxpayer's "total income" cannot exceed $49,000 for a single filer who is not the head of a household, $62,000 for a head of house hold, or $74,000 for taxpayers filing jointly; and for homeowners, the assessed valuation as of January 1, 2008, before residential exemptions but after abatements, of the homeowner's personal residence cannot exceed $793,000. Click for details.
Inheritance and Estate Taxes
There is no inheritance tax and a limited estate tax on estates valued at $1,000,000 or more.