Forum Discussion
- accsysExplorerThere is a reason why most full-timers choose Texas, South Dakota or Florida for their domicile state.
- pulsarExplorerI don't know how any one list could handle all of the variations. That said, here are some sites you can check out.
Kiplinger State-by-State Guide to Taxes on Retirees
By clicking on the states (in the map) you can create a list comparison list. Also, use the links on the bottom left for such things as The 10 most tax-friendly states for retirees.
Retirement Living Information Center
Click on the Taxes by States link on the right side of the page.
When looking at lists, I wonder how up to date they are. For example, many list will show the tax rate for North Carolina to be 5.75% - but it is 5.4999% currently. (It's a flat rate.)
About variations. The Kiplinger page (above link) list NC as not tax retiree friendly. However, if one is a "Bailey" retiree (defined on the NC page) all retirement funds (social security, pensions, IRAs, 401Ks) are exempt. (I'm a "Bailey retiree :)) Note: social security is exempt for all retirees.
Tom - kerrlakeRooExplorerThere are numerous articles and list on the subject, including several by AARP geared towards retirees. You can easily google "income taxes by state" and get those numbers. Some states have segregated their taxation, not taxing some forms of income but taxing others such as interest and dividends.
Every state has to get its money somewhere for roads and all the other govt programs, and income taxes are one part and method. Other states have much higher sales or property tax.
Overall cost of living by state may be of interest to you as well, and there are articles and guides on that
http://time.com/money/5177566/average-income-every-state-real-value/
There are so many variables it can become daunting to find what fits your exact situational needs.
Hopefully this at least gives you an idea of what to look for.
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