When considering places to retire, North Dakota, a state in the Midwestern part of the United States, might not be the first place that springs to mind. However, it would be worth taking a closer look given its inexpensive cost of living, stunning scenery, and welcoming people. The benefits and drawbacks of retiring in North Dakota will be discussed in this article, along with some frequently asked questions about taxes.
The affordable cost of living in North Dakota is one of the biggest benefits of retiring there. North Dakota’s cost of living is 1.6% cheaper than the national average, according to a recent research. Additionally, there is no sales tax in the state on food, which makes it a desirable choice for retirees who are concerned about their finances. The median property price in the state is $205,400, according to Zillow, which also indicates that housing prices are very affordable.
But not everyone will enjoy the temperature in North Dakota, especially those who don’t like the cold. Winters in the state are lengthy and severe, with frequent lows below zero. For retirees searching for a warmer location to enjoy their golden years, this could be a negative.
Going back to taxes, it is true that North Dakota levies a property tax. North Dakota has a lower effective property tax rate than the rest of the US, at 1.03% on average. However, the county and the property’s worth can both affect how much property taxes are.
North Dakota imposes a state sales tax of 5% on all purchases. The overall sales tax may reach 8.5% if counties and towns were to impose their own taxes on top of the state rate. A motor vehicle excise tax of 5% is further applied to the price of buying an automobile.
The state income tax form is available in North Dakota. Depending on income, the state’s income tax rates range from 1.10% to 2.90%. However, state income taxes are not applied to Social Security benefits or military retirement pay.
In conclusion, for those seeking a low cost of living, hospitable towns, and stunning scenery, retirement in North Dakota may be a smart choice. However, not everyone may be able to handle the state’s severe winters and high sales taxes. Before choosing a choice, it is advised to travel to the state and take advantage of its attractions.