If you’re getting close to retirement, the question always seems to come up of where the best place to retire is. Are you going to stay in your house? Are there warmer climates that are calling your name? We’re going to explore some things to consider when you’re making this important decision. Let’s start with income considerations. For a retiree, income comes in the form of pensions, IRAs, or money coming in from properties and investments.
The states with the highest income taxes are listed below. Of course, these percentages are taken from the highest brackets in each state, so depending on how much retirement income you have, the numbers you see below may not be your tax rate. Fortunately forHawaii, the state gets some major points for climate.
- Hawaii – 11%
- Oregon – 9%
- Iowa – 8.98%
- New Jersey – 8.97%
- Vermont – 8.95%
- District of Columbia – 8.95%
On the other hand, it would certainly be nice not to have to pay income taxes at all and there are nine states where that is a benefit of being a resident. Those states include Alaska, Florida, Nevada, South Dakota, Texas, Washington, Wyoming, New Hampshire* and Tennessee*. The last two states have stars after them because there is state income tax on dividends and interest income.
In my next post, we will look at property taxes!
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