On the other hand... 10 Most Tax-Friendly States for Retirees
If you live in one of these tax-friendly states for retirees, your retirement savings could last longer. As you approach retirement, or if you're already there, you may be thinking about moving to a different state to live out your golden years. If that's the case, consider moving to one of the most tax-friendly states for retirees. It can make a huge difference when you're trying to stretch out your retirement savings.
Of course, there are other things to think about if you're exploring relocation. For instance, you'll want to take climate, proximity to family and friends, access to quality health care, and a host of other important factors into account before picking a new location. But make sure you add taxes on retirees in any state you're considering to the list of primary factors. Depending on your situation, the total state and local tax burden in one of the best states to retire for taxes can be thousands of dollars less per year than in another.
To help you compare state taxes on retirees, try using Kiplinger's
State-by-State Guide to Taxes on Retirees (opens in new tab). But if you're just looking for the
10 best states to retire in for taxes, check out the list below. Our results are based on the estimated state and local tax burden in each state for two hypothetical retired couples with a mixture of income from wages,
Social Security,
traditional IRAs,
Roth IRAs, private pensions,
401(k) plans, interest, dividends, and capital gains. One couple had $50,000 in total income and a $250,000 home, while the other had $100,000 in income and a $350,000 home.
https://www.kiplinger.com/retirement...s-for-retirees