When old folks collect their gold watches, sell their houses and head south for their winter years, it’s not only the sunshine that’s luring them. States in the South typically boast tax laws that treat retirees better, with low or no income tax, low or non-existent sales tax and low taxing pensions and Social Security benefits. On the other hand, several northern states crush retirees’ dreams with tougher tax laws.
Kiplinger sorts through the tax rules and names the 10 best and worst states for retirees.
Among the best are Mississippi, Louisiana and Georgia, all of which exempt Social Security taxes and toss in other perks as well.
On the other side of the coin, Kiplinger deems Oregon, Minnesota and New Jersey among the worst states in which to retire due to less-forgiving tax setups.
If you’re planning to retire one day, where would you like to do so, and why?
Retiree Tax Heavens (and Hells) [Kiplinger]