The 5 Best States For Taxpayers Over 50
Since where you live has a significant impact on how much you can save over a lifetime, it is important to how states treat different forms of income, property, sales, estate and inheritance tax. All of these can substantially impact your retirement portfolio and your quality of life. According to Grandparents.com, these are the 5 best states, for taxpayers in their golden years.
Let us know if you agree.
Nevada is one of a handful of states that does not charge income tax. A huge benefit, however, Nevada also is a top state by combining a low state and local tax burden – 8.1% on average according to 2011 research from The Tax Foundation. Nevada also eliminated inheritance, estate and gift taxes. Not bad, considering the weather, the golf and Vegas Baby!
Seemingly the least surprising state for retirees, Florida is stacked with a high quality of life, diners and TooJays. Oh yeah, since they do not have a state income tax, Florida pulls off this top nod. Couple that with a low sales tax, and a homestead tax exemption up to $ 50,000 for people over the age of 65 who own their residence and have limited income. A don’t forget early-bird specials, day long games of shuffleboard and driving in the left lane for hours with your blinker on. Charge up the Prius and meet me in Palm Beach…
Known as the Long Star State and the home of the Bush family, Texas is a pretty sweet place to call home. It’s hot, filled with cowboys, steaks and oil, so why not spend your golden years looking over a dusty ranch. With no income tax and homestead exemptions, this is the perfect spot. Seniors over the age of 65 and disabled vets who own their own homes are qualified for a substantial property tax exemption. Pension and Social Security funds are protected from state and income tax, and there is no inheritance tax.
The prettiest state in the list, Alaska offers retirees no state sales tax and no income tax. Alaska is also known for being overly-generous to property owning seniors with up to a $ 150,000 property tax exemption. One other little tidbit that separates Alaska from the other 49 states, it actually ‘pays’ it’s residents to live there. In 2013, Alaskans received a share of the states oil wealth, which was $ 900. Drill baby, drill…
Like the other 4 states, Wyoming doesn’t tax income and has a very very low sales and local tax rate. It’s beautiful, wild and doesn’t tax pension or Social Security benefits. It has more elk than humans. I don’t know if that last statement is true, but I giggled when I wrote it down…