Living in Virginia's Most Expensive City for Retirement Might Deplete Your Retirement Funds
Arlington, Virginia, is among the most costly locations for retirees in the United States, largely due to high housing costs, expensive healthcare, and elevated tax rates. Despite its size, which makes it the smallest self-governing county in the country, Arlington offers premium real estate, abundant services, and a high quality of life.
However, these benefits come at a price. Arlington's median home value is an almost threefold increase over the U.S. average, making housing a significant financial burden. The primary factors driving this high cost of living are the county's proximity to Washington, D.C., and its high living standards.
retirees should consider the following aspects if they are considering retiring in Arlington:
Property Prices
Real estate values in Arlington are notably higher than the rest of the U.S. The median owner-occupied home value in the city is $864,800—a figure that is over 2.8 times the U.S. median of $303,400.
Healthcare Costs
Healthcare costs increase with age, and retirees need to assess them carefully when choosing a retirement destination. Arlington's healthcare expenses exceed the national average. For example, a doctor's visit in Arlington costs approximately $177.67, compared to the national average of $143.77. Nonetheless, healthcare is relatively accessible in Arlington, with numerous hospitals and healthcare providers across the city.
Local Taxes
Arlington's taxes can significantly impact retirement savings. The county's median effective property tax rate is 0.8989%, with a median annual property tax of $7,774—that is over 4.1 times the U.S. average. Additionally, the state income tax is graduated, meaning many residents pay $720 plus 5.75% of any income over $17,000. The combined sales tax amounts to 6.0%, causing the average resident to pay around $1,095 monthly in taxes. On a positive note, Virginia does not impose either an estate or inheritance tax.
While Arlington's high cost of living is primarily due to its proximity to Washington, D.C., and its high living standards, there are various amenities that contribute to the area's desirability, such as excellent healthcare, a wealth of recreational facilities, and easy access to public transportation. However, these benefits come at a price, and retirees need to carefully evaluate their financial situation before deciding to retire in Arlington. It may be beneficial to consider other nearby locations that offer a more balanced combination of affordability and amenities.
When evaluating Arlington for retirement, it's essential to consider the high property prices, as the median owner-occupied home value is $864,800, which is over 2.8 times the U.S. median. Additionally, retirees should be aware of the elevated local taxes, such as the county's median effective property tax rate of 0.8989%, and the combined sales tax of 6.0%, which can significantly impact retirement savings.
