SGH Wealth Management: What I'm Reading

Where the Tax Dodgers Retire

SGH Wealth Management’s “Read What I’m Reading” Jun. 2024 | Jun. 18th, 2024

Whether you prefer the term Tax Avoider, Dodger, or Evader, finding the best State in the US to stretch your retirement income further has multiple layers. Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming have all become retirement destinations since they do not charge state income taxes. New Hampshire would make this list although they charge a flat 4% tax on interest and dividend income.

Though state tax alone isn’t telling the entire story, you also must examine property taxes and state sales and excise tax into the equation.

So, when looking at the percent of an average person’s income paid to total state and local taxes, you discover that the least expensive states from a tax standpoint are:

  • Alaska, which assesses just 4.9% of the income of its average citizen.
  • Florida and Tennessee are near the bottom at 6.1%
  • While Texas at 7.6% and Washington at 8.0% might not be as thrifty as they would like people to think
  • Especially in comparison with Michigan at 8.0%

No reader will be surprised that the state tax leaders are:

  • New York at 12.0%
  • Hawai’i at 11.8% & Vermont at 11.1%
  • Maine at 10.7%, California at 10.4% & Connecticut at 10.1%.

Tax burden % of personal income paid towards state and local taxes Sam G. Huszczo, CFP, CFA SGH Wealth Management

Retirees who want to live on the coast and still pay low taxes might consider Delaware, which assesses an overall 6.4% tax rate.

Follow Founder Sam G Huszczo, CFA, CFP on Social Media (Twitter, Instagram, LinkedIn or Facebook) to see if he wins 2024 Investment Advisor of the Year June 21st in the Top Link below: