Best Rretirement States

When it comes time to retire, many senior citizens prefer to live in states that have warmer climates such as Texas, California and Florida however, it is important to consider the cost of living in whichever state you decide to retire in. One thing you need to take into consideration is the type of income tax the state has, as they vary from state to state and some states do not have one. This is an oversimplified way to judge the tax burden of a state, and can lead to paying very high amounts each year in taxes. With a little investigation you will find that states that do not impose income taxes upon their citizens, will find other ways to make up for it in other taxes.

People who have retired find it important to become more aggressive with their savings and look for states such as Pennsylvania, where there is no charge for people receiving retirement income. It is understandable why many senior citizens decide to retire in Pennsylvania, however, it would be to their advantage for them to look further into the other taxes imposed by the state. Perversely, Pennsylvania is actually one of the most expensive places in the United States to live. The average property tax in Harrisburg, PA, is around $6,551, however, in April 2008 homeowners began to see an average property tax cut of $169 per household. Combine that with $840 on average in sales tax, and Pennsylvania residents are typically paying around $7,391 in taxes per year, depending on their annual income.

Surprisingly, states like Arkansas and Delaware are actually the most cost effective for seniors. Annual taxes in Delaware range from a minimum of $75.00 to a maximum of $165.000 and homeowners in Dover, DE pay an average of $543 in annual taxes. Kentucky is another affordable state for seniors looking for good retirement communities, because residents of Frankfort pay an average of only around $1,114 per year in taxes. This is much less than supposedly tax friendly states such as Pennsylvania and Florida. Residents of Florida pay around $3,424 per year.

Even though income tax is one of the major factors in the overall tax burden, it is still something seniors need to take into consideration when deciding on a place of retirement. It is important to research not only the cost of home, but also what the average cost of living will be in your desired place of retirement. States with higher mortgages due to property taxes can be a long financial burden many are not able to bear. Avoid paying too much by researching state tax laws before making a move.

An effective tool to help in researching the information you need is by using your favorite internet search engine and look for financial management tools such as Kiplinger.com. Taking both state taxes and cost of living expenses will help you determine which will be the most suitable place for you to live. As you journey in finding the best suitable place for your retirement, here are some famous retirement quotes that are sure to make you smile: "If people concentrated on the really important things in life, there’d be a shortage of fishing poles." Doug Larson Another is: "A lot of our friends complain about their retirement, we tell ’em to get a life" - (Larry Laser).