There are reasons retirees flock to Florida, beyond the beautiful beaches or loving attention from presidential candidates. It's the tax structure. There's no income tax; prescription and over-the-counter drugs are tax-free; and retirees can claim an annual homestead exemption as high as $50,000 against their personal property taxes.
Stark differences in tax policy between one state and another have many retirees on the move.
Several states exempt pension income and Social Security from income taxes; you can find a thorough list of retiree tax policies at retirementliving.com/RLtaxes .html. But drill deeper: property taxes can be thousands of dollars higher from one town to the next.
Don't just look at the traditional retiree tax havens. Other states that don't tax pension or Social Security income include Alabama, Alaska, Mississippi, Nevada, Pennsylvania, South Dakota, Texas, Washington and Wyoming, reports CCH, a Riverwoods, Ill., tax publishing company.
Uncommon Knowledge
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
Newsweek is committed to challenging conventional wisdom and finding connections in the search for common ground.
