With taxable income for the past 5 years of our retirement and world travel of $100,000+, we have had zero Federal tax burden. This means the end of tax free Roth IRA conversions and capital gain harvesting.Ĭalifornia tax brackets and burden (2017) – Green Dot is 400% FPL for family of 3 (2018) Dividends, Roth IRA conversions, capital gains, and earned income are taxed exactly the same. What would it look like, financially speaking? How would it impact taxes, health insurance, and overall cost of living? TaxesĬalifornia has a State income tax which treats all income types equally. Setting up a home base in California would be a big change in our lives, no doubt. I figured I should at least crunch some numbers before we consider putting some California cities at the center of our radar.
I hear California is an expensive place to live, with high taxes, costly health insurance, and sky high housing prices. We have a few International destinations in mind, but several places in California rank high on our list of criteria.
We have been having the Forever Home discussion for some time now… Is there somewhere we love that would be a good place to raise a kid or two? Paying taxes and health insurance premiumsĭriving to the mountains in the vintage Escort
