As you plan for retirement, you may be asking yourself if it makes sense to relocate for tax purposes. While moving to a lower tax state can be financially beneficial, it’s not as easy as it sounds. You have to figure in travel expenses, especially if you plan trips back to your hometown to visit grandchildren and friends. Also, are you claiming residence in one state or do you plan on having homes in two? If you are going to move, your best bet is to find a state you like with a substantially lower cost of living. When living on a fixed retirement income, you need to stretch those dollars further than ever before.
Key Takeaways:
- If you are considering moving for the sake of reducing taxes you should do some research first.
- If you move someplace for a lower income tax you should consider the property taxes in that area and the cost of travel if you need to go home to see family.
- Relocating to a state with a lower cost of living is a good way to make your money stretch.
“Relocating for retirement and trimming the budget line for taxes are among the many tasks preretirees and retirees have on their to-do lists.”
