Best Rretirement States
When it comes time to retire, many senior citizens prefer to live in states that have warmer climates such as Texas, California and Florida however, it is important to consider the cost of living in whichever state you decide to retire in. Many retirees judge the suitability of a state based simply on whether or not it has an income tax. Retires the decide to live in a state with no income tax, will need to be aware of the possibility of having to pay higher state taxes. In fact, some of the states that have no income tax, often more than make up for it in other forms of taxes.
Retirees want to save as much of their money each year as possible, and many are drawn to states like Pennsylvania, where there is no tax charged on retirement income. It is understandable why many senior citizens decide to retire in Pennsylvania, however, it would be to their advantage for them to look further into the other taxes imposed by the state. Pennsylvania is one of the more expensive states for people to live in the continental United States. The average property tax in Harrisburg, PA, is around $6,551, however, in April 2008 homeowners began to see an average property tax cut of $169 per household. The 2005 Broadened Sales Tax was enacted to replaced some of the states school property taxes and this was shown to be a benefit to homeowners but not for renters.
There are states that are more economically friendly to seniors, such as, Arkansas, and Delaware. Annual taxes in Delaware range from a minimum of $75.00 to a maximum of $165.000 and homeowners in Dover, DE pay an average of $543 in annual taxes. Another place to find good retirement locations that is more friendly in taxes would be the state of Kentucky, the average resident senior pays around $1,000 in taxes per year. This is much less than supposedly tax friendly states such as Pennsylvania and Florida. Residents of Florida pay around $3,424 per year.
Even though income tax is one of the major factors in the overall tax burden, it is still something seniors need to take into consideration when deciding on a place of retirement. It is important to research not only the cost of home, but also what the average cost of living will be in your desired place of retirement. States with higher mortgages due to property taxes can be a long financial burden many are not able to bear. Avoid paying too much by researching state tax laws before making a move.
An effective tool to help in researching the information you need is by using your favorite internet search engine and look for financial management tools such as Kiplinger.com. Finding the best retirement friendly states is all about striking a balance between taxes and livability. Now that you have some good starting tips to help you make a good choice for a retirement location, you may want to enjoy a few of my favorite retirement quotes: “Retirement: That’s when you return from work one day and say, “Hi, Honey, I’m home - forever” - Gene Perret. Retirement is like a long vacation in Las Vegas but the goal is to enjoy it the fullest, but not so fully that you run out of money (Jonathan Clements).
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