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.

VKM

Latest News

drawing a dollar sign

IRS Says No “Clawback” When Estate and Gift Tax Basic Exclusion Amount Reverts to Old Limits

The Tax Cuts and Jobs Act temporarily doubled the value of assets that can be transferred without triggering ...

Section 199A Proposed Regulations Have Finally Arrived!

On August 8, the Internal Revenue Service issued much-anticipated proposed regulations (REG- 107892-18) (“Proposed Regulations”) concerning the deduction ...

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 ...

HM&M Updates

Jessica Gooch and Kimberly Lyons Graduate Transformational Leadership Program

A year of hard work pays off! HM&M is happy to announce that Jessica Gooch and Kimberly Lyons ...

HM&M Hosts Accounting and Financial Women’s Alliance September 2018 Meeting

Please join us for: September 2018 Meeting – CPE & Lunch Speaker: Randy Garcia, CPA Topic: Oil & ...

Income Tax Planning for Individuals: Effects of the Tax Cuts and Jobs Act

On August 3, 2018 Vance Maultsby spoke at the 34th annual Fort Worth CPA Tax Institute and shared ...