Top 10 Tax-Friendly States For Retirement
Top 10 Tax-Friendly States For Retirement
Are you ready to start life after your career? Or maybe retirement is still a ways down the road, but you prioritize self-reliance and realize it’s never too early to start planning for the future. At some point, most people decide to stop working and enjoy the golden years, once their preferred lifestyle is assured. Exactly when that happens will differ from person to person, depending on their wealth and specific family circumstances. However, no matter what kind of career you’ve chosen, or when to retire, taxes will play a role in how much your nest egg is affected. In other words, the IRS is going to be dipping its hands in the cookie jar no matter what. However, there are some factors that will play a key role in how much the agency gets to take and how much you get to keep. Listed below are some of those considerations and a list of the top 10 tax-friendly States for retirement.
LOCATION, LOCATION, LOCATION
Many different components will affect your retirement income, including how much you saved, how you saved it and where you saved it. In fact, when it comes to location, not only does it matter where you keep your money, it also matters where you physically live. There are several factors which will help determine your tax bill depending on which state you call home, and it’s not just your income taxes. For example, how high are the property taxes where you live? What kind of property tax breaks, if any, are there for seniors? Does your state tax Social Security benefits and will there be an estate tax when you are gone? These are all important things to consider when you decide where to live after you retire.
YOU MIGHT WANT TO LIVE HERE
To that end, there are definitely states that are better for taxes in retirement than others. In fact, the best states each exempt Social Security benefits, and most of them also exempt at least a part of other retirement funds. The top 10 tax-friendly states for retirement, according to Kiplinger’s 2021 analysis[i] in order are:
7 -South Carolina
3 -District of Columbia
Some of these states have a lot more to offer than just lower taxes for retirees, and even though Delaware has the lowest tax rates, its hard to beat Hawaii for making the most of those golden years.
We hope you found this article about the Top 10 Tax-Friendly States for Retirement helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us, GROCO, or visit our home page at www.GROCO.com. For GROCO Family Office Services or GROCO Family Office Wealth visit our Family office page. For GROCO tax, GROCO Advisory Services, GROCO Consulting Services, or GROCO Consulting/Advisory Services, please contact us here. For GROCO Technology and for GROCO Relationship Services contact us here.
And for our free newsletter, contact us here. Unfortunately, we no longer give advice to other tax professionals gratis.
We hope you found this article about “Top 10 Tax-Friendly States For Retirement” helpful. If you have questions or need expert tax or family office advice that’s refreshingly objective (we never sell investments), please contact us or visit our Family office page or our website at www.GROCO.com. Unfortunately, we no longer give advice to other tax professionals gratis.
To receive our free newsletter, contact us here.
Subscribe to our YouTube Channel for more updates.
Alan Olsen, is the Host of the American Dreams Show and the Managing Partner of GROCO.com. GROCO is a premier family office and tax advisory firm located in the San Francisco Bay area serving clients all over the world.
Alan L. Olsen, CPA, Wikipedia Bio
GROCO.com is a proud sponsor of The American Dreams Show.
The American Dreams show was the brainchild of Alan Olsen, CPA, MBA. It was originally created to fill a specific need; often inexperienced entrepreneurs lacked basic information about raising capital and how to successfully start a business.
Alan sincerely wanted to respond to the many requests from aspiring entrepreneurs asking for the information and introductions they needed. But he had to find a way to help in which his venture capital clients and friends would not mind.
The American Dreams show became the solution, first as a radio show and now with YouTube videos as well. Always respectful of interview guest’s time, he’s able to give access to individuals information and inspiration previously inaccessible to the first-time entrepreneurs who need it most.
They can listen to venture capitalists and successful business people explain first-hand, how they got to where they are, how to start a company, how to overcome challenges, how they see the future evolving, opportunities, work-life balance and so much more..
American Dreams discusses many topics from some of the world’s most successful individuals about their secrets to life’s success. Topics from guest have included:
Creating purpose in life / Building a foundation for their life / Solving problems / Finding fulfillment through philanthropy and service / Becoming self-reliant / Enhancing effective leadership / Balancing family and work…
MyPaths.com (Also sponsored by GROCO) provides free access to content and world-class entrepreneurs, influencers and thought leaders’ personal success stories. To help you find your path in life to true, sustainable success & happiness. It’s mission statement:
In an increasingly complex and difficult world, we hope to help you find your personal path in life and build a strong foundation by learning how others found success and happiness. True and sustainable success and happiness are different for each one of us but possible, often despite significant challenges.
Our mission at MyPaths.com is to provide resources and firsthand accounts of how others found their paths in life, so you can do the same.
The IRS is Not a Bully, No.4
The IRS is Not a Bully You can poke a bully in the nose. Palo Alto, CA. July 4, 2014 – This is the Fourth installment of “The IRS is Not a Bully” series, identifying taxpayer concerns and the difficult position in which Congress puts the IRS. Namely, applying ever increasing pressure to operate in…
New Jersey Dems Looking to Tax the Rich Even More
New Jersey Dems Looking to Tax the Rich Even More The rich are already taxed enough, right? Although many would disagree with this statement, unfortunately there are others who think that no matter how much they take from them, the rich can’t ever be taxed too much. To that end, democratic lawmakers in New Jersey…
What to Do About Corporate Taxes?
What to Do About Corporate Taxes? The debate over corporate taxes has raged for years, but even though the battle has been going on for decades, it has definitely experienced some changes. The business world, and the world in general, has changed since the days when Ronald Reagan was in office. That means politicians have…
Can Life Insurance Policies Solve the Estate Tax-Retirement Conundrum?
Can Life Insurance Policies Solve the Estate Tax-Retirement Conundrum? Many top-level company executives and business owners share a common problem when it comes to planning for estate taxes and retirement. The problem is that many of these individuals wonder how they are going to both pay the necessary estate taxes while at the same time…