Best Retirement States: Financial & Lifestyle Considerations

When looking at retirement states, you need to choose a place that you love and one that has tax advantages for retirees. Income is often fixed during retirement years, and you don't want to live somewhere that will consume a huge portion of your income in taxes. So, when narrowing down those retirement spots, consider your finances in addition to lifestyle.

Sales Tax

You may want to consider states with low or no sales tax. This will save a lot of money, especially on big purchases like cars. Also, check whether the state charges sales tax on medications, which could be a burden in your later years.

Property Taxes

Property taxes vary a lot from state to state. These can be a huge burden to retirees because they can be high and continue to increase over the years.

Income Taxes

This is an important aspect of retirement living. If your income is from a retirement account, find states with low state income tax. Also, some states, like Pennsylvania, do not tax pension benefits, which is beneficial to those whose income comes from a pension plan.