A new study from Ooma shows that state tax policies can create substantial differences in retirement costs. The team examined SmartAsset’s tax friendliness rankings to determine which states are the most and least expensive to retire in. Seven states achieved the “very tax-friendly” score: Alaska, Florida, Nevada, Wyoming, South Dakota, Georgia, and Mississippi. These states don’t tax retirement income, Social Security benefits, and in some cases, property, which creates strong advantages for fixed-income retirees. On the other end of the spectrum, seven states were deemed “not tax-friendly”: California, Vermont, Maine, Rhode Island, Connecticut, Minnesota, and Nebraska. All of these states tax income and property for retirees. We can see why many retirees opt for Florida. It’s not just the warm weather. The state has zero income tax, creating value for retirement that offsets living costs. Data like this is crucial for retirement planning and can affect where and when people retire.
infographic by: www.ooma.com
