With the economy continuing to sputter along while more baby boomers prepare to retire, many of Allan H. Densmore’s clients seek ways to preserve their wealth. One option that does not include a portfolio of stocks and bonds might also integrate a life change many potential retirees consider – relocating to a new state. As Allan H. Densmore has pointed out, certain state tax codes can pose big benefits to those without unlimited wealth.
There are currently 12 states among the 50 that do not deduct social security or income taxes. These 12 include Alabama, Nevada, New Hampshire, Tennessee, and Washington.
However, states do need to raise funds through some means, so it is important for potential newcomers to investigate income tax rates, in case they seek a part-time job for supplemental income. Other taxes that warrant investigating include property taxes, for those who plan to buy a unit, and sales tax.
Seven states do not collect income tax and just five remain without sales tax. Alaska collects neither social security, pension, sales, nor income tax, while New Hampshire receives just dividend and interest-related income tax – not social security, pension, or sales tax funds.