Retirement Planning: Taxes

Some data sources for taxes by state.

Retirement Living Center lists Taxes by State: "A total of 41 states impose income taxes. New Hampshire and Tennessee apply it only to income from interest and dividends. Seven states (Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming) do not tax personal income."

Which states give retirees the best deal? - MSN Money: "We discovered that when you look at the big picture, it might be cheaper to stay put in New York or Illinois than to move to one of the no-tax 'havens.' For retirees who are really retired -- that is, who haven't taken on jobs in retirement -- income taxes are often the least of their worries." This is an article from Kiplinger.com, and it's a good survey but it's out of date. I don't see a date stamp on the article, but the last time you could buy a house in Sacramento for $165k was several years ago.

Bankrate.com weighs in with State retirement income tax breaks: "When you're searching for a place to retire, a location's taxes are certainly an important consideration, because they could take a big bite out of your retirement resources. To varying degrees, many states offer breaks for older or retired residents."

Bankrate has another article: Finding the perfect U.S. retirement tax haven: "It seems like it would be easy to find a tax-friendly place to while away your golden years. Nine states don't have an income tax. Five don't levy any sales tax. By this measure, a perfect state to retire to is Alaska, since it falls into both groups. There's just that minor issue of the weather."

The Tax Foundation Provides State-by-State comparisons of taxes in general: Tax Research Areas > State Tax Policy and Data: "The goal of the Tax Foundation's State Tax Policy and Data section is to provide a comprehensive resource for information on tax and spending policy in the 50 U.S. states. For information on your state, click on the map below or select from the drop-down menu."