M/A/R/C®
Search the blog:

Congrats It Is Time To Retire Where Are You Living And Why?

I was reading an interesting article a few weeks ago entitled “The most (and least) tax-friendly places to retire”. The article ranked the 5 best and worst states to retire in and some tax implications.  I thought I would share the list and add a few comments:

The best 5 states to retire to are:

 

State Income

State Sales Tax

Inheritance Tax

Alaska

0

0

0

Wyoming

0

4%

No

Michigan

4.35%

6%

No

Pennsylvania

3.07%

6%

Yes

Colorado

4.63%

2.90%

No

Reviewing this list I was a little surprised to see Alaska as number 1. Even though it is a tax friendly state and I am sure it is a great and beautiful place to retire, I don’t know of one person who has retired there from another city. Wyoming and Colorado don’t surprise me but I would have thought that Florida and Texas (maybe I am biased) would have been on the list and shocked that Michigan and Pennsylvania are anywhere near the top 5.

Here are the worst states to retire to:

 

State Income

State Sales Tax

Inheritance Tax

California

1.25 %-10.55%

8.25%

No

Rhode Island

3.75%-9.9%

7%

No

New Jersey

1.4%8.97%

7%

Yes

Vermont

3.55%-8.95%

6%

No

Iowa

.36%-8.98%

6%

Yes

I was shocked that California was the worst state to retire too and not surprised that three of the cities are cold weather cities in the northeast and don’t have great tax plans.

I thought the list was very interesting and made me really think about retirement – when and as important where? I wanted to mention that there are 7 states that have NO state income tax.

  1. Alaska
     
  2. Florida
     
  3. Nevada
     
  4. South Dakota
     
  5. Texas
     
  6. Washington
     
  7. Wyoming

I hope you enjoyed some of this information and it got you to think about the future. So I ask you it is time to retire:

  • Where are you living and why?
     
  • Are you targeting warm weather locations like I am?
     
  • Are you planning on living near your kids and grand children?
     
  • Do you envision having multiple homes?
     
  • What did you think of the two lists?

I look forward to hearing from you and reading your comments.

14 Responses to “Congrats It Is Time To Retire Where Are You Living And Why?” - Leave a Reply






Thank you for your comments. If you would like to sign up for your picture to be displayed next to your comments, click here to go to gravatar.com