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5 Tax Considerations for Retirees

By Gerry W. Beyer

USA

As I have previouslydiscussed, there are many state tax factors to consider before choosing aretirement destination.  Besides theobvious state income tax, here are five other tax factors to consider:

  1. Retirement-plan distributions.  Most states exempt a portion of pensionincome from taxation, but will often treat public and private pensions indifferent ways.
  2. Social Security benefits.  Fourteen states still tax them to someextent.
  3. Sales taxes. State and local sales taxes need to be included in every personal budgetanalysis.  Some states exempt certainitems while others have no sales tax at all.
  4. Property taxes. Check local jurisdictions to see how they generate property-tax bills.
  5. Estate and inheritance taxes.  Some states require estates or heirs to paytaxes in addition to federal estate taxes.

SeeEditors of Kiplinger’s Retirement Report, 6Tax Factors to Consider when Picking a Retirement Destination, Kiplinger,Aug. 21, 2013.