Best Retirement
States
It is true that seniors prefer the warm climate and leisure
activities of states such as Florida and Texas, they are not
necessarily the best retirement states where income is
concerned.
Many retirees judge the suitability of a state based on an
oversimplified view of the state tax laws. This is an
oversimplified way to judge the tax burden of a state Some of
the states that have no income tax are actually among the most
expensive tax wise in the United States.
Retirees naturally seek to preserve as much of their money each
year as possible, and many are drawn to states like
Pennsylvania that do not charge anything on retirement income.
Although this is an understandable reaction, failure to look
closer can cost these seniors a great deal of money.
Ironically, Pennsylvania is actually one of the least
affordable places in the United States to live. The average
property tax in Harrisburg, PA, amounted to an unbelievable
$6,551. Combine that with $840 on average in sales tax, and
Pennsylvania residents are really paying approximately $7,391
in taxes per year.
Surprisingly, states like Arkansas and Delaware are actually
the most cost effective for seniors. Living in Dover, DE, costs
on average around $543 per year in taxes. Kentucky is another
affordable state for seniors, with residents of Frankfort
paying around $1,114 per year. This is much less than
supposedly tax friendly states such as Pennsylvania and
Florida. Residents of Florida pay around $3,424 per year.
Despite the importance of tax income, it is very important to
research the other factors at play. Be sure to research the
cost of homes, as well as cost of living. In areas with high
property values, property tax can eat up a great deal of income
each year. Look out for potential money sinks by researching
state tax laws before making a move. The general livability of
a state is also important.
Resources such as Kiplinger and Taxsites.com can help greatly
in the search for the best retirement states. Finding
the best retirement states is all about
striking a balance between taxes and livability. Just because a
state has the lowest taxes doesn't mean you should move there,
but don't neglect to check out a state's tax laws before
moving. Some states, such as Pennsylvania, can make your
retirement dream unaffordable if you are not careful.
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