If you're thinking of relocating, compare the taxes in potential retirement states to those in your current state. Wherever you retire, you may be eligible for senior-related breaks on retirement income, property taxes and sales taxes.
Where do you want to spend your golden years? Regardless of where you decide to retire, make sure you check out more than the average weather forecast. Prepping for a retirement location goes way beyond the temperature and scenery.
Each state is different when it comes to the legal and tax environment a retiree or estate planner will face.
A recent Kiplinger article titled “States Differ on Retiree Tax Burden” is well worth your read. Furthermore, you will want to save it to your “reading file” for future reference.
Remember, you are planning for that special place where you intend to spend your golden years. That means you will need to consider the effect of location on both your retirement and your estate.
The Kiplinger article provides a state-by-state run down on the tax basics and a colorful map to guide you. Each state offers various perks and challenges to the retirees that are well worth investigating and understanding.
Since choosing your retirement location is one of those significant life events, you should follow the carpenter’s rule of thumb: measure twice and cut once.
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Reference: Kiplinger (September 2013) “States Differ on Retiree Tax Burden”