Are you a baby boomer who is just about at that age to retire and thinking about making the move to Florida like most other retirees? If the answer is yes, then you may need to reconsider your decision because Florida did not make the top five best states to retire in. These top five states are based on their state income tax, their state sales tax, and the amount of estate/inheritance tax.
1. Wyoming— state income tax is zero, state sales tax is only four percent and no estate/inheritance tax. Groceries and prescription medicine are exempt from state sales tax.
2. Mississippi—State income tax is only three to five percent, state sales tax is seven percent and there is no estate/inheritance tax. Social Security benefits and qualified retirement income like pensions are exempt from state income taxes.
3. Pennsylvania—State income tax is three point zero seven percent, state sales tax is six percent, and there are estate/inheritance taxes. This state offers generous exclusions for a wide variety of retirement income to be exempt from state income tax. Food, medicine, and clothes are exempt from state sales tax.
4. Kentucky—State income tax is two to six percent, state sales tax is six percent and no estate taxes but there are inheritance taxes. Social Security benefits are exempt from state income taxes and up to forty one thousand one hundred ten dollars per person in other retirement income such as public and private pensions are exempt.
5. Alabama—State income tax is two to five percent, state sales tax is four percent and there are no estate/inheritance taxes. Social security benefits and benefit pensions are exempt from state income taxes.
There is a wealth of FREE information to do more research on where to retire:
Best States to Retire In:
State-by-State Guide to Taxes on Retirees
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Best active adult retirement communities – Topretirements.com
These in-depth state retirement guides will give you the facts and information needed to find the best retirement states to fit your lifestyle.
Most tax-friendly states for retirement
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Taxes by State – Retirement Living Information Center
A comparative guide to state taxes nationwide, including income, … retirement planning · best places to retire · retirement planning · Search our Site …