Sunday, October 04, 2009

Retirement Relocation: Consider All Taxes When Figuring Out Savings

I found an excellent article from the Orlando Sentinel written by Ms. Mary Beth Franklin. I will summarize.

States without income tax:
(1.) Alaska
(2.) Florida
(3.) Nevada
(4.) South Dakota
(5.) Texas
(6.) Washington
(7.) Wyoming
(8.) New Hampshire (tax only dividend and interest income beyond certain limits).
(9.) Tennessee (tax only dividend and interest income beyond certain limits

States that exclude federal, military and in-state government pensions from taxes:
(1.) Alabama
(2.) Hawaii
(3.) Illinois
(4.) Kansas (taxes public pensions from other states).
(5.) Louisiana
(6.) Massachusetts
(7.) Michigan
(8.) Mississippi (exempt all retirement income, including IRA and 401(k) distributions).
(9.) New York
(10.) Pennsylvania (exempt all retirement income, including IRA and 401(k) distributions).

States tough on retirees:
(1.) California (9.55 percent tax on income less than $1 million).
(2.) Rhode Island (9.9 percent income tax).
(3.) Vermont (9.5 percent income tax).

Do not tax Social Security Benefits:
(1.) Alabama
(2.) Arizona
(3.) Arkansas
(4.) California
(5.) Delaware
(6.) District of Columbia
(7.) Georgia
(8.) Hawaii
(9.) Idaho
(10.) Illinois
(11.) Indiana
(12.) Kentucky
(13.) Louisiana
(14.) Maine
(15.) Maryland
(16.) Massachusetts
(17.) Michigan
(18.) Mississippi
(19.) New Jersey
(20.) New York
(21.) North Carolina
(22.) Ohio
(23.) Oklahoma
(24.) Oregon
(25.) Pennsylvania
(26.) South Carolina
(27.) Virginia
(28.) Wisconsin

States without a sales tax:
(1.) Alaska
(2.) Delaware
(3.) Montana
(4.) New Hampshire
(5.) Oregon

States with notable sales tax amounts:
(1.) California (8.25 percent)
(2.) Indiana, Mississippi, New Jersey, Rhode Island and Tennessee (7 percent).

States that do not allow municipalities to levy local sales taxes:
(1.) Connecticut
(2.) Kentucky
(3.) Maine

States with lowest property taxes (from lowest to highest):
(1.) Louisiana
(2.) Alabama
(3.) West Virginia
(4.) Mississippi
(5.) Arkansas

States with the highest property taxes (from highest to lowest):
(1.) New Jersey
(2.) New Hampshire
(3.) Connecticut
(4.) New York
(5.) Rhode Island

In my own opinion it's best to focus on states without pension/retirement income taxes and relatively low property taxes.

1 comment:

Zengirl said...

Very interesting article. Makes you think! I believe california sales tax now increased to 9.25%!