Whether you are considering staying in your home in Westchester County, moving to a smaller home in upstate New York, moving back into the city, or thinking about a warmer climate down in South Carolina or Florida, its a good idea to compare how each state taxes retirement income!
Having considered moving to North Carolina, Pennsylvania, Denver or Massachusetts on occasion, I’ve done some research on this and came across a great website done by Kiplingers.
This website gives you a map of the United States that you can click on. It color codes each state according to the most tax friendly to the last tax friendly with the majority being somewhere in the middle. Once you click on the state, it tells you whether the state taxes social security or pensions. It gives you the average income tax, sales tax, and whether you get a senior property tax deduction if you own a home. If you have a large estate, it also highlights whether the state has an estate tax and the percentage your inheritors would have to pay. Some even have a charge if the money is going to your spouse!
There are eight states that are the most tax friendly, but unfortunately New York is listed as one of the least tax friendly of eight listed. I think part of that is due to our high property taxes.
Take a look at the Kiplingers Article and see if it makes a difference in the way you think about retiring!