Retiring in Heber: 5 Tax Surprises You Should Prepare For
When most people think about retirement in Heber Valley, they picture the scenic beauty, peaceful pace, and easy access to the outdoors. And they’re right—it’s an incredible place to retire. But if you’re not careful, Heber’s beauty can come with a few hidden tax surprises that catch many new retirees off guard.
Here are five things every retiree in Heber should plan for:
1. Utah taxes Social Security—but not everyone’s.
Unlike some other states, Utah does tax Social Security income—but you might be eligible for a credit that offsets the full amount. The catch? It phases out fast. If your income is above a certain level (and let’s be honest, if you’ve saved well, it probably is), you could miss out on that credit altogether and end up paying full tax on your benefits. A little planning goes a long way here.
2. Your IRA withdrawals could push you into a higher bracket.
Required Minimum Distributions (RMDs) can take a big bite out of your retirement income—especially if your tax situation wasn’t considered when you chose your investments. I’ve met plenty of people who set things up with growth in mind, not realizing that once they hit their 70s, the IRS will force them to pull large chunks out of their accounts and pay taxes at the worst possible time. Heber may be relaxing, but your RMDs won't be.
3. Real estate taxes are lower than many states—but there’s a twist.
Wasatch County’s property taxes aren’t too bad, especially compared to California or the Northeast. But second homes or rentals? That’s a different story. Utah taxes those properties at nearly double the rate of your primary residence. If you’re thinking about buying a second property here or converting part of your home into a short-term rental, make sure you understand how that changes your tax picture.
4. Your Medicare premiums might surprise you.
This one flies under the radar: If your income crosses certain thresholds—even by a single dollar—your Medicare Part B and D premiums go up. A lot. That’s called IRMAA (Income-Related Monthly Adjustment Amount), and it’s one of the sneakiest ways retirees end up paying more than they expected. Sometimes just a little Roth conversion planning or shifting income between accounts can save thousands over time.
5. Moving here might affect your estate plan.
If you moved to Utah from another state, there’s a decent chance your will, trust, or healthcare directive needs updating. And don’t assume your old documents are fine just because they’re legal. Every state has its own quirks, and Utah is no exception. I can’t tell you how many folks I’ve worked with who had great planning back in California or Arizona—but the moment they moved here, their plan no longer fit their goals.
Living in Heber is one of the best decisions many retirees make. The mountains, the quiet mornings, the neighbors who wave—it’s hard to beat. But the reality is, the tax code doesn’t care how beautiful your view is. If you’re not careful, your retirement income could slowly be drained by taxes, fees, and penalties you didn’t see coming.
The good news? Most of this can be avoided with some up-front planning. I help retirees in Heber do exactly that—keep more of their money and feel confident they’re not missing anything important.
And whether you’re brand new to town or you’ve been here for years, I’m always happy to chat.