Tax-Friendly and Not-Tax-Friendly States for Retirees

Kiplinger recently released its 2015 survey about states and their relative tax-friendliness to retirees.

Of course, one quickly focuses on the absence or presence of a state income tax.  That is definitely a factor in determining the tax burden of living in a particular state.  However, there are other important tax considerations for retirees, including (at least) income taxes on retirement distributions, income taxes on social security, sales taxes, property taxes, and estate and inheritance taxes.

When all these factors are weighed, Kiplinger nominates as the ten “most tax-friendly” states the following (moving from east to west):  Delaware, Florida, Georgia, Mississippi, Louisiana, South Dakota, Wyoming, Arizona, Nevada, and Alaska.  Kiplinger’s ten “least tax-friendly” states include (from west to east):  California, Oregon, Montana, Nebraska, Minnesota, New York, New Jersey, Vermont, Connecticut, and Rhode Island.

Two places on my list of potential retirement homes do alright.  Texas is “tax-friendly.”  Michigan is “mixed.”  Should I now add tax-friendly South Dakota?  Nah.


Latest News

The Home Mortgage Interest Deduction – Changes Under the TCJA

The Tax Cuts and Jobs Act of 2017 (“TCJA”), enacted Dec. 22, makes modifications to the deductibility of ...

Qualified Opportunity Funds – A New Investment Vehicle from the TCJA

A new Qualified Opportunity Zone (“QOZ”) program to encourage investment in low-income communities (“LICs”) is part of the ...

The Bipartisan Budget Act of 2018, passed and signed into law on February 9, 2018, has a number of tax law changes.

On February 9, Congress passed, and the President signed into law, H.R. 1892, the “Bipartisan Budget Act of ...

HM&M Updates

Jessica Gooch Named Shareholder

HM&M is pleased to announce Jessica Gooch was named Shareholder of the firm effective January 1, 2018.  Thank you for ...

Kim Lyons Named Shareholder

HM&M is pleased to announce Kim Lyons was named Shareholder of the firm effective January 1, 2018.  Thank ...

Randy Garcia Featured in Fort Worth, Inc.

Great job to Randy Garcia, CPA for being featured in the December edition of Fort Worth, Inc. Read ...