Tax Laws Fla. and PA, Tips Please
We live in MD now. We just made an offer on a cabin in PA. Hopefully all goes well and we settle before the end of October. After that the current plan is for the DW to spend about 6 months in Fla....
Forum Discussion
FL-PA Ret. Taxes, etc.
Factor in the lack of a state income tax, and that could easily tip the scales toward Florida residency for the employed. My wife and I, however, have been retired and FL/PA snowbirds for the past sixteen years.
Both FL and PA have no income tax on social security and retirement pension income. Both Pa and FL do have 6% sales tax, and both have homestead provisions regarding real estate taxation. They are relatively alike in those expenses, and many snowbirds choose Florida residency for those reasons – especially if they rent.
For us to remain as PA residents, the deciding factor centered on car and property insurance. Clearly the cheapest insurance for the PA resident is from Erie Insurance, but for very little more, State Farm will offer coverages for you that Erie will not.
Associated Rant Follows: We would have remained with Erie had our local agency not sold us Full Tort without Uninsured and Underinsured Motorist Coverage some years ago. After an accident in 2012 which caused grievous injury, we were informed that we had no UIM/UM coverage. When questioned, we were presented with documents containing forgeries of our signatures. After a private meeting in our home, wherein he admitted his mistakes, our agent referred us to his Errors and Omissions insurance carrier* who promised to work with us on this matter – as long as no attorneys were involved. This willingness to work with us lasted until time carried us beyond the statutes of limitation. Deal over! In short, we do not trust Erie.
Subsequent attorney contacts prove that *Liberty Mutual was correct about the statute of limitations.
Factor in the lack of a state income tax, and that could easily tip the scales toward Florida residency for the employed. My wife and I, however, have been retired and FL/PA snowbirds for the past sixteen years.
Both FL and PA have no income tax on social security and retirement pension income. Both Pa and FL do have 6% sales tax, and both have homestead provisions regarding real estate taxation. They are relatively alike in those expenses, and many snowbirds choose Florida residency for those reasons – especially if they rent.
For us to remain as PA residents, the deciding factor centered on car and property insurance. Clearly the cheapest insurance for the PA resident is from Erie Insurance, but for very little more, State Farm will offer coverages for you that Erie will not.
Associated Rant Follows: We would have remained with Erie had our local agency not sold us Full Tort without Uninsured and Underinsured Motorist Coverage some years ago. After an accident in 2012 which caused grievous injury, we were informed that we had no UIM/UM coverage. When questioned, we were presented with documents containing forgeries of our signatures. After a private meeting in our home, wherein he admitted his mistakes, our agent referred us to his Errors and Omissions insurance carrier* who promised to work with us on this matter – as long as no attorneys were involved. This willingness to work with us lasted until time carried us beyond the statutes of limitation. Deal over! In short, we do not trust Erie.
Subsequent attorney contacts prove that *Liberty Mutual was correct about the statute of limitations.
