For many taxpayers, retirement choices often include relocating to a warmer year-round climate. But what about tax considerations? Currently nine states have no state income tax requirements: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
However, if relocating to a “tax-free” state, do your homework first. States generate operating revenues somewhere, so it would also be wise to check on the state’s sales tax and property tax rates as well before making any “tax efficient” relocation decisions.
On the other side of the spectrum, the five states with the highest marginal personal income tax rates are: California (12.3%), Hawaii (11.0%), New York (10.9%), New Jersey (10.75%), and Oregon (9.9%).