If you’re curious about which states offer the most tax friendly environments for retirees, you may want to check out the interactive retiree tax map on the Kiplinger web site.
Users are presented with a map of the United States on the main page. You can click on any state within the map to get a breakdown of relevant information retirees would want to know if they are considering relocating to that state.
The list of information starts off with the “bottom line” which is a quick summary of the overall rating Kiplinger gives to the state as to whether or not it is deemed a “tax friendly to retirees” state.
For instance, if you click on California, the “bottom line” is that Kiplinger concludes the state is not tax friendly, saying, “California is a retiree’s tax nightmare. Although Social Security benefits are exempt, all other forms of retirement income are fully taxed. California residents pay some of the highest income taxes in the U.S.”
Contrast that with another state which is considered to be tax friendly. Clicking on Alabama, for instance, leads to a page which begins by saying, “Most retirement income, including Social Security, is exempt from state income taxes. Homeowners 65 and older don’t pay state property taxes, but some cities and counties apply their own property levies.”
Other information included on the breakdown of each state includes descriptions of items such as state sales tax rates, the state’s income tax range, whether or not Social Security benefits are taxed, property taxes, and other exemptions for other retirement income sources.
Visit the retiree tax map web site at Kiplinger.com for more information.