In retirement, saving money on your tax bill becomes more critical. Saving money period becomes critical if you are going to stretch your retirement accounts over at least 20 years. Here are the five most tax friendly states that may be worth relocating to.
- Alaska does not tax Social Security or pension income and there is no state sales tax.
- Nevada does not tax income and has low property taxes. The downside is that the sales tax is fairly high compared to other states.
- South Dakota is another tax friendly state that may not be on your radar. There is no income tax, tax on Social Security or pensions. There is a light 4% tax on sales.
- Wyoming will not tax your income, Social Security, or pension. Sales tax is very low as well, but property taxes are among the highest in the nation.
- Washington is another income tax free state. As with Wyoming, the property taxes are high compared to most other states. Additionally, we can help you get the lowest rates on bad credit car loans in WA.
Saving money on your income can be a great perk if you are looking to relocate during your retirement. You will want to weigh all forms of taxation before making your final decision though. Some states have low taxes in one area, but hit you hard in others.