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States With the Lowest Tax Burden for Seniors
Whether it’s to move closer to family or to start a brand new adventure, the idea of moving in retirement might seem appealing. If you’ve lived in one place for most of your adult life, you might want to finally enjoy a change of scenery. But what states are the friendliest to retirees like yourself? What states have the lowest tax burden for seniors? Where can you stretch your dollar further?
While your finances aren’t the only thing to consider when making a move, knowing where you can make your retirement savings stretch further might make your decision a little easier.
The 5 Most Tax-Friendly States for Retirees
When planning a move in retirement, you’re likely looking for better climates, closer proximity to family members, or just a new place to put down roots. And while you might already have some options in mind, we have five more states for you to consider. All of the states in our list have the lowest tax burden to help you maximize your retirement income.
In these states, Social Security benefits are exempt from state income taxes. Most also allow for an exemption for a portion of other retirement incomes, including pensions and IRA withdrawals. Take a look at our list and see which tax-friendly states might appeal to you!
- Delaware – With no sales tax, low property taxes, and no death taxes, Delaware has the best interests of retirees in mind. The lack of sales tax can make it easier for retired individuals to make larger purchases without having to dip too much into their retirement savings.
- Hawaii – While the cost of living is high in Hawaii, lower taxes can help make up for higher costs in this paradise location. Hawaii has one of the nation’s lowest average state and local tax burdens for retired individuals. What does this mean for you? With low property taxes, sales taxes, and tax-free Social Security benefits, it’s definitely an option to keep on the list when you’re ready to move.
- Colorado – Wouldn’t it be beautiful to retire somewhere with a view of the Rocky Mountains? Colorado’s median property tax rate is the fourth lowest in the US. Property tax exemptions, deferrals, and rebates are also available for seniors. Colorado is also one of the most tax-friendly states for seniors, with a low flat-rate income tax, no death taxes, and low state sales taxes.
- Wyoming – Wyoming is one of the states with the lowest tax burden for seniors, as they have zero income, estate, or inheritance taxes. Low sales taxes and reasonable property taxes are also considerable benefits to retired seniors looking to stretch their money as far as possible. In Wyoming, there’s an option for seniors to delay up to 50% of their property taxes if money is tight. This generous deferral can offer additional peace of mind to senior residents.
- Nevada – If you’re looking for a total change of scenery in your retirement years, look no further than the desert fun offered in Nevada. This state features no income taxes, estate taxes, and inheritance taxes for seniors. With the third-lowest median property taxes in the US, you can stretch your retirement savings further than you might have imagined. The one downfall of this retirement location is that it does feature relatively high sales taxes, making it difficult to make large or unexpected purchases.
When it comes to relocating in retirement, you have a lot to consider. Luckily, the decision is totally yours! Remember, the goal wherever you decide to live is to make your retirement savings last as long as possible. You can enjoy some much-deserved peace of mind by giving special consideration to the states with the lowest tax burdens for seniors.
Looking to relocate in your retirement? Upside can help you select a perfectly curated apartment that caters to your lifestyle now and as you grow older. Start the conversation with an Upside team member today.