Reaching the point in your career where you can walk away from it all into retirement is a good day. It takes a lifetime to work towards saving and planning to be able to do this. It is a luxury that not every American gets to enjoy. When you have finally achieved this, it may leave you wondering what your taxes are going to look like now that you aren’t working anymore. Mark Dicus & Company is here to talk about what taxes look like after you have retired.
Do You Still Have to Pay Tax when You Retire?
Even though you don’t have to pay social security and Medicare payroll taxes anymore after you retire, there are several taxes that you will still have to think about. Here are the taxes that you should still plan for even though you aren’t getting a paycheck from a job.
– Income Taxes: Unless you live in one of 9 states (such as Nevada) that doesn’t charge their residents income tax, you will still have to plan to pay state and federal income taxes after you retire. The amount of taxes that you have to pay will depend on how much money you make. You may have to pay anywhere between 10%-37% in taxes depending on your income.
– Social Security Taxes: If you are collecting social security, you may have to pay taxes on that money. This happens when you are bringing income on top of your social security benefits. Depending on how much more you are bringing in, you may have to pay taxes on 50% of your social security benefits or 85% of your social security benefits if you are making even more.
– Sales Tax: There are a few states that don’t charge sales tax to their residents, but if you live in a state that does, you will still be paying sales taxes.
– Property Taxes: If you own your home, property taxes aren’t going to end after you have retired. These taxes are based off of how much money your property and home are worth. Throughout most of the country, your property tax will be about 1.1% of the total value of your property and home.
– Inheritance & Estate Taxes: When someone dies, there is an estate tax on all the assets that that person had. If you have inherited money from someone that has passed away, you will have to pay taxes on that money as well. Depending on the state you live in, the taxes you pay on estates and inheritances will look different.
Bookkeepers, Accountants, Tax Advisors & More in Summerlin, North LV, Henderson, Lone Mountain Village & Greater Las Vegas, Nevada
If you have questions about what taxes are going to look like for you after retirement, you can turn to Mark Dicus & Company to get you the answers you are looking for. It is highly recommended to turn to a financial advisor once you have retired to help you budget and make the most of your retirement. Call us today!