Which States are the Most Tax Friendly for Retirees
According to my readings, a substantial number of baby boomers intend to downsize and relocate for reasons that include cost of living. That being the case, knowing which states are the most tax-friendly to retirees is important. When you investigate this question, the answers may surprise you.
CCH is a major player in the tax publication industry and likes to create charts, calculate and rank tax burdens by state. Market Watch used the CCH data to create a slide show featuring the states most tax-friendly to retirees.
Number one is Alaska but given other cost of living issues, its remoteness, and weather, it would not be on my list.
Texas and Florida make the list also, which is a plus for them.
If course, these are generalized rankings. If the gap between your anticipated retirement income and desired spending budget is small, it would be important to do an individualized analysis based on your own sources of income, etc. and to look at related taxation trends. For example, Nevada has a low tax burden on retirees but that may have to change somewhat for Nevada to get its finances in order
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