Tennessee residency

[Don2466]

Been doing some research for full timing, looking at Tennessee as place to change our residency from Michigan, no income tax, no pension tax, don't tax social security, and insurance/vehicle registration cheaper. God whats not to like coming from the state that leads the nation in highest #1 insurance, and our registration is based on the msrp of the vehicle.
Anyways, anyone familiar with residency requirements and is there any full time mail forwarding services there we can use as our home address?

[carp65]

Have been a SD resident for 12 years. Great mail services, no state income
tax, personal property tax, and lower insurance and licensing costs. Driver;s
licenses can be renewed by e-mail with certain restrictions.

[GoinThisAway]

Urban areas in TN like Nashville are growing by leaps and bounds but the majority of the state is still rural. You can find anything from flat land in the western part to mountains in the eastern part. The only thing missing is oceanfront :B The Crossville area is popular with retirees and there are developments along the Tennessee River where you can buy an RV lot. I'll be interested to hear if anyone uses TN as their home state without owning land. As to driver's license renewals, I think you can only renew it remotely every other time.

[Beentherefixedt]

It would be my advice that unless you had a rather large retirement income that taxes should be low on your list of concerns given the size of the standard deduction.

I would concentrate on the two things that cost so much. Auto insurance and Auto Registrations/taxes.

It would also be smart to identify a state with expanded Medicare benefits.

I have three addresses, one of them is in Alaska. That is the address I give to insurance companies as it results in much lower rates than anywhere in the lower 48 (for me; but I have never had an accident or any violations have held a class A CDL and Currently hold a Class B and have taken numerous National Safety Council courses)

There is a good website to look at regarding state by state insurance costs:

State by state insurance costs

Income taxes are much easier to mitigate than are insurance costs and vehicle registration and medical costs therefore I beleive your focus on taxes is a bit misguided. (unless as I said your income is pretty substantial and cannot be lowered thru legal means)

[mauilu]

We just sold our house in Tennessee and are going full time. We plan on keeping our residency here for all the reasons listed above. It's a great state.

[CFerguson]

There are mail forwarding services in TN. Small local type. You just have to search them out. I suspect that's true just about everywhere.

I like the idea of purchasing a small piece of property and improving it. If that isn't in your budget, find someone who will 'rent' you a room or shed as your homebase.

Yes, the Hall tax is being phased out and it is at 3% in 2018. Its 2% in 2019, and 1% in 2020. There are also exemptions for certain stocks like banks, etc. Lobbyists at their finest, ya know.

I once did a comparison of states I would live in (mostly the no state income tax states) using what I actually spend a year. I assumed I would buy a X dollar house, spend X dollars on food, power, and gasoline, X dollars on insurance/property taxes and so on. I also based it on my projected income. I think I looked at TX, WY, AK, FL, WA, MT, ID and since I was living in TN I threw that in for comparison.
I was Shocked at the answer. TN won and it wasn't even close. Realize, of course that these calculations were specifically tailored to my income and buying habits and you need to do this for your own situation to fairly judge.

If anyone has any questions for me, ask away or PM me. I am born and raised in TN, left for a bit to work in TX/AK/CA/europe and am retired back to TN. And my wife was a CPA.

[Johno02]

ADVICE FOR ANYONE MOVING TO TENNESSEE:

1. Save all bacon grease. You will be instructed later how to use it.
2. If you do run your car into a ditch, don't panic. Four men in the cab of a four wheel drive with a 12-pack of beer and a tow chain will be along shortly. Don't try to help them. Just stay out of their way. This is what they live for.
3. Remember: "Y'all" is singular. "All y'all" is plural. "All y'all's" is plural possessive.
4. Get used to the phrase "It's not the heat, it's the humidity". And the collateral phrase "You call this hot? Wait'll August."
5. Don't tell us how you did it up there. Nobody cares.
6. If you think it's too hot, don't worry. It'll cool down-in December.
7. A Mercedes-Benz is not a status symbol, a Chevy, Dodge, or Ford is.
8. If someone says they're "fixin" to do something, that doesn't mean anything's broken.
9. The value of a parking space is not determined by the distance to the door, but the availability of shade.
10. If you see a slower moving vehicle on a two lane road pull onto the shoulder that is called "courtesy".
11. BBQ is a food group. It does NOT mean grilling burgers and hot dogs outdoors.
12. Yes, weddings, funerals, and divorces must take into account for UT Football games.
13. Everything is better with Ranch dressing.
14. DO NOT honk your horn at us to be obnoxious, we will sit there until we die.
15. We pull over and stop for emergency vehicles to pass.
16. We pull over for funeral processions, turn our music off and men remove hats or caps. Some people put their hand over their heart.
17. "Bless your Heart" is a nice way of saying you're an idiot.
18. No mater what kind : sprite, coke, pepsi, mtn dew, it isn't called soda or pop. Its all called coke.
19. If you don't like the weather in Tennessee, wait 15 minutes, it will change.

[coolmom42]

stallsmi wrote:
I copied this from a website...something to be aware of: The Tennessee income tax does not apply to salaries and wages, but most income from stocks, bonds and notes receivable is taxable at a flat rate of 6%. The first $1,250 in taxable income received by a single filer is exempt. The first $2,500 in taxable income received by a joint filer is exempt.

This is being phased out. It is down to 2% next year, 1% in 2020, and disappearing after that. It does not apply to 401K or IRA distributions.

Hall Income tax phase-out, TN Dept. of Revenue

[Johno02]

Pick kentucky, alabama Arkansas, Mississippi. Much the same as Tennessee, don't know anything about prices or taxes in any of them. Beware Tennessee at all costs! Severe overcrowding in some places, and getting worse. Population in our area is almost 3 people per acre.

[TenOC]

stallsmi wrote:
I copied this from a website...something to be aware of: The Tennessee income tax does not apply to salaries and wages, but most income from stocks, bonds and notes receivable is taxable at a flat rate of 6%. The first $1,250 in taxable income received by a single filer is exempt. The first $2,500 in taxable income received by a joint filer is exempt.

1. The Hall tax is been phased out. Hall tax rate.

2. I do not know of any mail forwarding services in TN.

3. I lived in TN at one time. Now I live in SD.

[rr2254545]

DownTheAvenue wrote:
Why try to re-invent the wheel? Florida, Texas, and South Dakota are the states most full timers claim as their residency. There are companies in all three states that cater to full timer and can assist with mail and forwarding, insurance, vehicle registration, driver's licenses, and voting registration. I think you need to do more research.

X2 The CPA in me thinks that you must be missing something in TN or more would be doing it

[midnightsadie]

tenn your choice,talk to a att and a cpa in the area your looking at . att might cost couple bucks, cpa free.

[Dave_in_TN]

stallsmi wrote:
I copied this from a website...something to be aware of: The Tennessee income tax does not apply to salaries and wages, but most income from stocks, bonds and notes receivable is taxable at a flat rate of 6%. The first $1,250 in taxable income received by a single filer is exempt. The first $2,500 in taxable income received by a joint filer is exempt.

That's the Hall income tax and it has been repealed and is currently being phased out. The rate is 3% this year, and will be gone by 2021.

[DownTheAvenue]

Why try to re-invent the wheel? Florida, Texas, and South Dakota are the states most full timers claim as their residency. There are companies in all three states that cater to full timer and can assist with mail and forwarding, insurance, vehicle registration, driver's licenses, and voting registration. I think you need to do more research.

[Lwiddis]

“You won't find the services and amenities ANYWHERE that you have in Michigan, but you will find, as you know, very little in the way of taxes, also.”

California has high taxes AND no services or amenities.