David Muhlbaum and Rocky Mengle of Kiplinger.com review the 10 states that you should consider for retirement due to their tax-friendly rules and regulations.
If you’re thinking of moving to a different state in retirement, you’ll want to consider climate, proximity to family and friends, access to quality health care, and a host of other important factors before picking a new location. But make sure you add taxes in the new state to the list of considerations. The total state and local tax burden in one place can be thousands of dollars more per year than in another. That can make a huge difference when you’re trying to stretch out your retirement savings.
With no sales tax, low property taxes, and no death taxes, it should come as no surprise that Delaware made number 1 on the list.
You’ll also have more money to spend on the grandkids because property taxes are so low. The estimated annual property tax bill in Delaware for our first make-believe retired couple is just $1,405 on their $250,000 home. It’s just $1,967 for our second imaginary couple’s $350,000 home in the state. Those property tax totals are the seventh-lowest amounts in the nation for homes at those prices.
Since there are no estate or inheritance taxes in Delaware, you can pass along more of your wealth to the grandkids, too (or to other family, friends or charities).
View the article here for the full rankings, their methodology, ranking method, etc.
Mengle, Rocky and Muhlbaum, David. “10 Most Tax-Friendly States for Retirees” Kiplinger.com, 24 January 2021, https://www.kiplinger.com/retirement/601814/most-tax-friendly-states-for-retirees