Taxes, Retirement and You
Many people nearing retirement consider moving to Sunbelt States like Florida and Nevada for both the weather and lack of state income taxes. However, all states have a variety of taxes, so look beyond income taxes and then take another look at your total tax picture.

TAXES ANYONE? State income taxes aren’t the end-all. In addition to income taxes, states levy taxes on general sales (although some may exempt food or clothing), real estate, rooms and meals, utilities, and even inheritances and estates. So it’s important to weigh all of these factors and figure how each tax may affect you.

For example, you may plan to rent and not care about high real estate or school taxes. Maybe you’re spending down your estate so you don’t care about taxes in this area, either. Conversely, you may have relatively little income but own expensive real estate, so property taxes will matter more than income taxes.

EXEMPTIONS Look beneath the surface for a clearer picture of a state’s taxes. Some states with the highest income tax rates, for instance, may exempt Social Security and retirement plan income up to certain limits. And don’t kid yourself: Every state has to levy taxes somewhere to keep running, so do your homework to learn which ones might affect you most.

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