One of the biggest concerns for seniors is making their nest egg last as long as possible, and a good way to do that is to spend less and save more. A lower tax burden is one of the best ways for you to manage your retirement earnings. These five states have the lowest tax burdens, making them extremely attractive to retirees looking to stretch their retirement income.
You cannot beat retirement in Vermont. Retirees who call Vermont home can boast that there is no income tax, social security tax or state sales tax. Very few U.S. states have as much to offer retirees when it comes to tax savings.
Alaska is the only U.S. state besides Vermont that offers retirees as many tax shelters. This state has the advantage of no income tax or sales tax. Revenue collectors also overlook social security earnings.
This state is a boon for retirees since there is no tax on social security benefits and no sales tax. There is an income tax, and retirees with pensions should evaluate their individual situations to determine whether retiring in this state makes good financial sense.
This state mirrors Oregon in its benefits for retirees. There is no tax on social security earnings and no sales tax, which helps retirees make their money go further.
This beautiful state carries an extremely low income and social security tax burden. In fact, it has the third-lowest tax burden in the entire country. Sales tax is a bit higher at 7 percent, and there is a 6 percent tax on interest and dividend income. The state also allows tax-free estate transfers between spouses.
Lower taxes can go a long way to making your retirement savings last longer. However, there may be other factors that can affect your bottom line. You should consider the overall cost of living in addition to lower taxes when deciding where to live after retirement. Individual circumstances vary, so talking to a financial planner could help you decide what state to call home.