So what’s OUR takeaway?… Taxes aren’t always everything!
A few states that have low or no income taxes might have higher property or sales taxes. For example, while Illinois doesn’t tax your retirement income, it has one of the country’s highest sales and property taxes.
Other low-tax states might have fewer programs that you may find useful, including senior centers and excellent public transportation. So ultimately, WHERE you live in your retirement hugely depends on what you can afford and also what makes you happy.
If you have a beloved grandchild in a high-tax state, you might conclude that the extra taxes are worth being nearby.
Side Note: You might not have paid any taxes on your retirement income, but that doesn’t mean that the state you live in doesn’t tax retirement income under particular conditions: 27 states tax a little bit on retirement or pension income.
Generally, these states limit the amount of tax based on income levels.
If this subject interests you, we have many more great reads! You should also check out: Tax Refunds: 6 Brilliant Ways To Spend Them Wisely
I am retired from the State of Texas thru ERS and I am taxed on my retirement and there is all taxes on Estate and inheritances.
How is Tennessee not listed? Maybe I missed it?
I live in Ohio, retired widow for 27 years, had to work because husband died at 48, lost my pension in Steel mills I am still taxed to death because I had to work longer to pay off all his medical bills, and no pension and to build up my Social Security. You cannot get ahead in this state. We are taxed to the hilt here. Tough for retirees to survive.
why not states need taxes broke for senior citizens that retired don’t think we live o fixed income to
Indiana does tax social security. Indiana taxes social security as frderal irs does