You have been waiting and saving for a long time for this season of your life.
It seems like this would be an easy decision, but where do we go?
Here’s the list, in order of best overall places to retire. We have links to all the state government sites so you can search for specifics easily.
Because this state has a smaller population than most, the tax liabilities are small. There is no state tax, estate tax, or inheritance tax. That is the lowest overall tax percentage of all the states in the country. Other perks include lower property taxes. State tax runs about 5.32%, and seniors can get a refund of $800 or so if they meet income requirements.
Even though there are no specific tax breaks for seniors, Nevada is, without a doubt, one of the most desirable places to live. There is no income tax, estate tax, and no inheritance tax. Property taxes are below average, which makes a fixed income go along way.
Another state with no sales tax, estate, or inheritance tax. Property tax is low, and there are some tax credits for seniors over 60.
This state has meager taxes for seniors. Alabama income tax is 2% on taxable income of $500 or less for single filers and $1,000 or less for joint filers. Most residences pay only about 5%, so if you have a taxable income, that’s what you will pay, and for joint returns, it is over $6,000. It is attractive also because there is no estate or inheritance tax. At only $432 per $100,000 in property value, taxes are a bargain. It is the second-lowest in the country for property taxes. And if you are 65 or older, you have no state property taxes all. Be aware, the sales tax is high, the fifth in the nation, about 9.16%.
You will be celebrating retiring all over again if you retire in South Carolina. With no estate or inheritance tax, it is undoubtedly attractive. Social Security is exempt from taxes, just another significant benefit. If your 65 and older, the first $10,000 of your income you can exclude from paying taxes. You still benefit if you are under 65, you can exclude up to $3,000. There are benefits when it comes to property taxes too. First, its relatively small, $601 per $100,000. But its a homesteading state, so like Florida, your first $50,000 is exempt from taxes. The sales tax is one small drawback in the state, and that’sThe statewide sales tax is 6%, and local governments can tack on an additional 3% if they choose, making the average combined tax about 7.46%.
Where will you retire?
Related: Retire at any age