The markets are down and new retirees are looking for the most tax efficient places to live because, all else being equal, living in a lower tax state can make your retirement assets last longer. According to the retirementliving.com website, the nation as a whole will pay 9.7 percent of its income in state and local taxes in 2008. However, in some states, you can expect to pay significantly more and in others, significantly less.
What are the most expensive states? New Jersey tops the list with its residents paying 11.8 percent of their income in state and local taxes. New York is right behind New Jersey at 11.7 percent and Connecticut wraps up the top 3 most expensive states at 11.1 percent.
If you really want to stretch your retirement dollar, you might want to consider a move to Alaska, where residents pay just 6.4 percent of their income in state and local taxes. Nevada is in second place at 6.6 percent. Wyoming residents pay 7.0 percent, Florida residents pay 7.4 percent, New Hampshire residents pay 7.6 percent and the other top ten states include South Dakota at 7.9 percent, Tennessee at 8.3 percent, Texas at 8.4 percent, Louisiana at 8.4 percent and Arizona at 8.5 percent.
The retirementliving.com website is a source of a lot of great information. Their state by state guide tells you the specifics of nearly every tax imaginable including: sales tax, gasoline tax, cigarette taxes, and personal income taxes. The site also includes information about the Homestead Exemptions available in each state. For paid subscribers, you can get reports on the top retirement cities and the newest and best active adult communities and senior living facilities.
The author is solely responsible for the content.