Best State to Retire in For Tax Purposes
In the most recent research Bankrate found that 4 or 10 American will relocate after retirement. That is a whole lot of us moving around. People decide to do this for a variety of reasons – some of which include:
In this article we will explore another aspect of this – which state is the best to retire in for tax purposes.
According to Smart Asset there are seven very tax friendly states:
- South Dakota
Their interactive map allows you to calculate your taxes between states to decide with state you would like to move to.
Kiplinger has their own very interesting interactive map. On the Kiplinger map you can choose to compare multiple states side by side to see which one works the best for you.
And according to US News “These 13 states don’t tax Social Security or pension income. However, they have very different property and sales tax rates, which should also be taken into consideration, according to data from Wolters Kluwer Tax & Accounting, the Tax Foundation and the U.S. Census Bureau.”
As the people at New Retirement point out – you don’t just have to worry about income tax. There are multiple other ways of taxing retirees that you also need to be aware of and compare when looking for the best state to retire to for tax purposes.
Retirement living has made it clean and simple to compare the top 10 states for tax reasons. The show you the different taxes you will pay by state such as state income and local taxes as well as estate, inheritance and gas tax.
I know taxes may or may not be your number one reason for choosing a particular state – but if you have it narrowed down to a few it could be the deciding factor and end of saving you thousands of dollars a year.