Conclusion
The majority of retirees have a retirement home in mind for their superannuation.
It might be a picturesque beach house, a log bungalow deep in the woods, or a penthouse.
But whatever and wherever the dream home is, make certain that all the local tax situations in your ultimate destination are cross-checked before you pack your life and relocate to a new state.
State and local taxes can have a substantial impact on retirees.
The taxes retirees pay during superannuation can fluctuate significantly depending on where they decide to move. Similarly, income taxes on things like Social Security retirement reimbursements and retirement account withdrawals differ extensively in every state, as mentioned above.
What do you think about these tax-friendly states?
Also, there are massive variances between the property and sales tax rates across the country, so to make sure that you’re always informed, check out this amazing book here: Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes!
18 Responses
I am astounded you have left out NH. Taxes were a primary consideration after I retired from the Army in 1992. We have have NO income tax or state sales tax in our state. Need I say more? In addition we have the lowest state tax on gasoline in New England. The argument that our high property taxes wipe out the other tax advantages does not fly!
Utah would be a much better place to live than Nevada with its dependence upon gambling taxes.
You got that right. People move to Las Vegas and live in Las Vegas because of the illusion it is cheaper than many other low cost retiree heavens in America.
very informative wish that I had known before retiring,
we live in Arkansas and we are at full retirement age. if we still work do we need to have taxes held out of our social security checks
Does anyone have personal experience with retirement in South Carolina? Is it as tax-friendly as it sounds?
No, it is not a tax friendly state for those moving there, particularly if you’re from NY. Government pensions are taxed and if you have a vacation home there, your home is taxed at a higher rate.
Does anyone know if Arizona has an income tax for seniors? I’ve been thinking of moving there to be closer to family, but I would like a first-hand account from someone who retired there!
You got that right. People move to Las Vegas and live in Las Vegas because of the illusion it is cheaper than many other low cost retiree heavens in America.
I’m considering relocating to Colorado. What are the long-term financial implications for retirees?
I’m moving from Florida to North Carolina any suggestions
cYes Gary, NH is the best kept secret in taxation. No income tax and no sales tax. However the cost of a donut (doughnut) is about $4.99 . The price of a four-pack Dove soap bars is $6.99. A large box of Mueller’s Spaghetti is $13.49. Must take the Standard Deduction
and hope for the best outcome.
The States problem is that it leans or is Dem.. Try Florida at least during the frigid winter. Brrrrrrrrr.
I my self do don’t know but I am of the opinion ( from what I have read ) that the crime rate in South Carolina. is not something to brag about.
all the states are full of shit. They all rob us. Thank you government.
No, it is not a tax friendly state for those moving there, particularly if you’re from NY. Government pensions are taxed and if you have a vacation home there, your home is taxed at a higher rate.
What about Houston Texas? I just recently retired from the VA Hospital here in Virginia and I’m a Veteran. I lived there some years ago and loved it. Would it be wise? This is a commonwealth state and they tax everything.
i retired to colombia south america on my sheep farm, live at one mile above sea level 4 degrees north of the equator where everyday is in the 70’s, no heating or cooling needed, living in the 3rd world is cheap, no hassle from government, come and go to the states when needed, only miss DQ and the soft ice cream, later……………………
ps – retired military special forces from vietnam thru iraq and all the shitholes in between, even did time on the equador/colombian border during the narco wars, life here is better that the states