Tax Exempt States for Full Time RVing

Piperflyer wrote:

Tax Exempt States for Full Time RVing

I know a few of the states have no state tax when it comes to purchasing RV's( NH being one), I'm looking for a state with this and where you can renew you drivers license and vehicle registration online and don't have to have your vehicles inspected yearly. Is there any?

I think folks have covered your concerns and then some.

However, one was left out -- Health Care Costs.

If you're receiving Medicare, then not to worry. But if you're under 65, purchasing individual health care could be as expensive or more than state taxes, vehicle registration, etc.

So if you're under 65, check out what health plans will cost and whether or not they're "portable" for an RVer.

Bummer my new RV will cost me 1K more in sales tax now!

If SD is your current or future domicile state, be aware they just approved some increases in vehicle fees to fund road & bridge repairs. as I understand it, these go into effect immediately, April 1, 2015

The state tax on new or transferred vehicles is going from 3% to 4%, and the annual registration fee is going up an avg of 20% (varies by category)

The state fuel tax is also going up but that mostly impacts the folks living there.


South Dakota State News Home

silvercorvette wrote:
I am retired am my income is from a disability pension so income taxes are not a main concern. What is a big concern are vehicles taxes and property taxes, in SC sales tax on vehicles are capped at $300 but you pay a yearly property tax. If you RV meets certain conditions it is registered as a second home and is taxed at a lower rate.

I bet a lot of retired people may have a low taxable income and sales tax along with vehicle taxes may be a more important factor.

In my case my taxable income is so low that living in a state with no income tax but high sales, vehicle tax and high registration fees would not work out well for me and I bet the major portion of retired people on this forum would better off in a state with a high income tax but low RV related taxes. We have to look at the big picture, we may wind up in a state with low or no state income tax but get kill with RV related taxes.

I love SC but am looking for a better place to live if I go thru with my plan to sell my house and full time it.

Discus your situation with one (or all) of the three major mail forwarding services in South Dakota.
Americas Mailbox is one, a poster listed another.
Now even has it's own RV park (if you plan to domicile in SD, you will need to spend one day as a resident - for a DL, etc.)
Americas Mailbox is also in Florida (for another state registration option)

You will *not* pay excise (sales) tax on registering your RV (or other vehicles) in SD *if* it was previously paid in another state.

There is no "property tax" on an RV in SD - just the annual (inexpensive) registration fee.
*NO* annual inspection required (as in TX), or special driver's license.

Vehicle (and/or RV) Insurance is reasonable (less than TX) - as there are only about 750 thousand residents in the entire state of SD.

How good is SD?
The 'preeminent' full-timer organization (Escapees) headquartered in Livingston, TX.....with many full-timer "Texans" - has now opened an office in South Dakota...:W

On edit: Here's a thread about SD mail forwarding services currently running on the SKP forums -

SD Mail Forwarding (etc.)



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bikendan wrote:
the OP deleted the Federal tax reference from his post, but didn't post that he did that.
OP, it's a good idea to add a edit statement when you delete something from your post, when the topic contines shows up in nearly every post after it.

:R..:R..:S

He sure did edit his thread/post - with no "mea culpas", on the part about a fee pass to the grey-bar RV park, ROTFL.

However - as "NMDriver" indicated in the post before yours....
He could seek a job with UN or NATO and possibly avoid Federal Income Tax....as well as possible overseas employment to accomplish same - -
however the former would most likely require residence in NY (not too good for full time), while the latter might put a serious crimp in his RVing plans..:( ..:(

.

I am retired am my income is from a disability pension so income taxes are not a main concern. What is a big concern are vehicles taxes and property taxes, in SC sales tax on vehicles are capped at $300 but you pay a yearly property tax. If you RV meets certain conditions it is registered as a second home and is taxed at a lower rate.

I bet a lot of retired people may have a low taxable income and sales tax along with vehicle taxes may be a more important factor.

In my case my taxable income is so low that living in a state with no income tax but high sales, vehicle tax and high registration fees would not work out well for me and I bet the major portion of retired people on this forum would better off in a state with a high income tax but low RV related taxes. We have to look at the big picture, we may wind up in a state with low or no state income tax but get kill with RV related taxes.

I love SC but am looking for a better place to live if I go thru with my plan to sell my house and full time it.

I can only speak for where I live, but if I bought a car, truck, or TT in Oregon in order to save $$$$ on no sales tax, I believe the State of Washington will make up for that sales tax savings when I sign up for my Washington license plates. They always get their pound of flesh. Now, when we're heading north going home we always stock up in Portland on clothing and needed supplies because we don't have to tell the State about that stuff.

cdlaine wrote:


Good luck ...sounds like the majority votes South Dakota... I wonder why so many retirees live here in Az.. ;)

Charles

although I don't like the heat, it sure beats the cold.
bumpy

To the OP... I do not know your current history but (big but) if you perchance are Active Duty Military don't forget the potential benefits of the Soldier and Sailor's Relief Act , and selection of home of record.

Good luck ...sounds like the majority votes South Dakota... I wonder why so many retirees live here in Az.. ;)

Charles

South Dakota no state income tax. Vehicle purchase 3% fee. Insurance rates are good there also.

Most full timers on the West Coast choose SD for their Domicile.

It's an easy process, contact Terry that I mentioned above she has been doing this service for many years she will be happy to answer your questions.

First time reading your post but do not want to read through 3 pages of responses. My response may be repeating some of the information already posted so I apologies for that.

Anyone with any sort of income, dividends or interest earnings pays Federal Taxes regardless of which State they claim as their domicile assuming the dollar amounts exceed the deductions and/or credits.

There are nine States in the union that do not have a State income tax. NH, TX, FL, SD, AK, TN, WY, NV and either OR or WA, forget which one.

Of those, NH and TN, have a State income tax on dividends and interest income.

Very few States do not have a State sales tax, and as you mention NH is one of them. If I remember correctly AK is also one of those States. OR or WA, forget which one, also has no sales tax.

Most RVers who change their domicile to minimize their tax liability chose either FL, TX or SD.

You can own a house in any state without considering it your domicile state. You do not need to own property, although it helps, to be domiciled in a specific state.

Both my wife and I were born and raised in NH and own property there. It would have been pretty easy to change our domicile back to NH. We didn't because of the need to have vehicles inspected every year to renew the tags. Also, registering vehicles was way too expensive compared to SD.

This information was acquired back in 2008 when we started our RV travels. Things may have changed some since then. We ended up declaring SD as our domicile State.

Good luck selecting a new domicile state and safe travels.