So, which state is has the best overall tax climate for retired persons? It depends on the type and amount of income you will be bringing in, the value of your home, your cash-on-hand, and any specific tax issues you may have.
For example, if you will have a lot of income or will continue to work part-time after retirement, income taxes may be your first priority. Conversely, if you will be living on Social Security that is exempt in many states, property taxes may be more important. There are some clear front runners though. States that have no income tax or exempt pensions and Social Security income, and that also have low property and sales taxes top the list. These states are: Alaska, Nevada, Hawaii, Wyoming, Florida, Louisiana, Delaware, and Mississippi.
Keep in mind that this list is for general use and does not take into account climate, access to quality medical care, or cost of living, among other things. Your financial outlook and what is important to you in a retirement community will determine your unique fit in retirement destination. You should contact your CPA or financial advisor for more personalized guidance on this topic.
