3 Tax-Friendly States for Retirement

When it is retirement planning time, there are many factors you will need to consider. In addition to weather, proximity to family, and health care access, the amount of income or savings that you will have for retirement is first and foremost.

This is most likely the highest priority on retirees’ minds when thinking about how, when, and where to retire. Besides a low to moderate cost of living, one of the best ways to maximize retirement dollars is to live in a state that has beneficial tax policies towards those dollars.

So, here is a list of three states that are some of the most tax-friendly.

Wyoming

If you would like to live in a state with wide-open spaces and have a love for outdoor adventure living, Wyoming has many benefits along with being retirement tax-friendly.

For starters, there isn’t an income tax on seniors and there are no inheritance and estate taxes. The sales tax averages 5.34% for state and local taxes.

Additionally, the median property tax rate is $575 per $100,000 per year. Eligible seniors can also get a payment delay of up to 50% for hardship cases.

Combined with a relatively moderate cost of living makes Wyoming an excellent place to retire.

Nevada

In Nevada, you won’t have to risk your retirement savings because it is one of the best for tax savings.

It’s one of the few states that don’t have an income tax. Because there isn’t an income tax, it doesn’t tax Social Security, pensions, 401(k)s, or IRAs.

There aren’t any inheritance or estate taxes, either. There is a sales tax with a state base rate of 6.85%. And, similar to Wyoming, the property tax rate is low at $533 per $100,000 home value, which is the fourth-lowest median property tax rate in the nation.

Florida

Because of the weather and tourist attractions, Florida is one of the best states to live in as a retiree. If you aren’t convinced just ask any one of the 6.4 million seniors 65 years and older that live in the state.

And, each year the state is consistently the second-most moved to state in the country. It’s no wonder because there isn’t an income tax, which means there are no inheritance or estate taxes.

Also, it means that Social Security benefits, 401(k)s, and IRAs distributions are tax-free. There is a sales tax.

The property tax rate is higher than the other states mentioned at $833 per $100,000. Real estate prices are much higher in southern Florida increasing the overall housing cost.

But if you stay to the Gulf Coast and north of Palm Beach County on the Atlantic side, you can definitely benefit from everything that Florida has to offer seniors.

Recommended Articles

Why You Must Pay Off Your Mortgage Before Retiring

Should you pay off you mortgage before retiring? Only if you want to actually enjoy retirement. A study for government mortgage buyer Fannie Mae showed a growing number of elderly

7 Amazing Credit Card Perks Losing You Money If You Don’t Use Them

Over 25 million people have used their favorite credit card for more than a decade. Yet many are missing out on fabulous credit card perks they could be using every

7 Warnings Signs of a Recession

The 2018 has not been a banner year for the stock market. Warning signs of a recession are becoming more obvious, according to some economists and market pundits. The Dow

Keeping More: How Does a Student Loan Affect Taxes?

Filling out your taxes correctly can be a challenging process, especially for those with student loans. But how does a student loan affect taxes? Many ways, starting with deductions. It

Migraine Pain? Here Are the Best and Worst Foods

Food can be your friend or your foe. Particularly for migraineurs, food can be a serious trigger for a headache, or it can bring a blessed relief from pain. Here

5 Major Money Decisions Before You Retire

It is said that retirement is a lifelong journey and not a destination. For many aspiring retirees, it may be a road to nowhere. Over 22% of Americans have less

Buying a Home? Avoid These 8 Killer Mistakes

Buying is home is not easy. You need to line up credit, decide how much house to buy, find the house, deal with realtors and the sellers. It can be

Body Odor: The Real Reasons Why You Stink

Body odor can be a really embarrassing condition. Unfortunately too many people deal with this common problem by washing more often with antibacterial soaps and body washes, and applying products

4 Powerful Passive Income Ideas That Can Boost Income

Do you enjoy exchanging hours for pay? This form of compensation is common, but most people dread it. What if you could instead get paid whether you work or not?

8 Tips for Efficiently Managing Your Small Business Finances

Managing your small business finances is crucial. Small to medium-sized businesses need financing but they lack enough of it — to the tune of $5 trillion, according to the SME Finance

The One Chart That Could Be a Game Changer for Investors

Allow me to present one chart to you that could indeed prove to be a game changer for investors and financial markets going forward. See below. What are we looking

6 Cultures That Promote Longer Lives and What We Can Learn From Them

Okinawa is renowned for its ability to produce long-living citizens and centenarians, or individuals who live past 100 years of age. What’s their secret? Their bodies age more slowly than