Where to Retire?
August 15, 2008
We sometimes get asked which state is best for retirement, from a tax perspective. Answering such a question depends entirely on an individual’s income and wealth, consumer habits, and how strongly they weigh taxes over other concerns (such as climate, proximity to family, etc.). So besides providing data about state tax rates, we usually recommend such questions be asked of investment and tax advisors.
That said, Kiplinger.com has an excellent article summarizing many tax questions people have about retiring in various states. For example, they note:
In addition to the nine states that do not have a broad-based individual income tax, 27 states and the District of Columbia don’t tax Social Security. Wisconsin was the latest to join those ranks in 2008.
The remaining 14 states — Colorado, Connecticut, Iowa, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont and West Virginia — tax Social Security benefits to some extent.
See the full article here.