3 Tax-Friendly States for Senior Retirement

Most 55 plus seniors prefer retiring to tax-friendly states. This is because they don’t want to spend their fixed income on taxes. The less money you spend on taxes, the more you will have to enjoy the golden years. Although this is a tough equation to achieve, with a little bit of research, you will be able to find a few tax-friendly states that you can retire to.

When considering tax-friendly states, you should consider income tax, property tax, and sales tax. A few states, such as Alaska, Florida, and Nevada do not impose an income tax. However, these states may have high property and sales taxes. Therefore, you need to spend quite a bit of time researching these factors. Then there are states that offer special tax breaks for seniors. Hawaii, Alabama, Pennsylvania, and Michigan are some states that offer special tax breaks for you. Consider property taxes when looking at tax-friendly states. This can be quite beneficial if you are on a low income with high housing costs. Delaware, Hawaii, and Louisiana are three states that charge the least in property taxes when compared to home value. So, which state will you choose? Let us help you make an educated guess…

Delaware – If you are looking at Delaware for retirement, you are making a wise choice. This small state is extremely tax-friendly. Delaware does not impose a sales or income tax. Social security benefits are exempt from taxes and as a senior; you may be eligible for various tax relief programs etc. If you are leaning towards Delaware active adult communities, consider Bon Ayre in Smyrna, Whispering Woods by McKee Builders in Middletown, and Heritage Shores in Bridgeville.

Alaska – Although the weather may get you down in Alaska, the taxes in this state are almost non-existent. You don’t have to pay income tax or sales tax and you may eligible for some government refunds. If you prefer the cold climate and want to make the best of the taxes, you should consider a home in Alaska. Two active adult communities in Alaska you may be interested in are Mountain Rose Estates Eagle River in Eagle River and Monte Vista in Palmer.

Alabama – This is the ideal state to spend your retirement. The weather is excellent sporting a warm climate and the best news… no taxes on Social Security and military, government and civil service pensions. There is a sales tax though, which can be pretty steep sometimes in various areas. Luckily, if you are over the age of 65, you may be exempt from county property taxes. Two 55 plus communities in Alabama, you can consider, are Arbours at Pierce Creek in Mobile and Merrill Gardens at Florence in Florence.

So, now you have three tax-friendly states that you can consider retiring to. However, before you make any move, take the time to research your options. These are just three options we picked up. Other states will have their individual charm and special tax benefits that apply to you. All the information you need about tax-friendly states and what you may be eligible for is available online. Taking the time to do this will help you make your choice about the state you will be benefited the most.

If you need further community information on tax-friendly states, visit ActiveAdultLiving.com®, the number-one website featuring more than 8,500 retirement communities in the USA and Canada.

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