Why is it important to know the best states to retire in? Not all states offer the same perks for seniors, so retirement opportunities may differ depending on the location you choose. One has to consider not only the attractions in their state of choice, but also the privileges the government provides its citizens. We have compiled a list below to help you when considering the best states to retire to.
Best States to Retire In: 10 Ideal States For Seniors
If a person is looking to retire near the beach, Florida is a good place to settle in. With its famous beaches, it’s a favorite destination for those looking for a summer getaway all year long. Retirees particularly enjoy southern Florida’s promising tropical climate year round.
Although sales taxes can go as high as 7.5%, residents enjoy a tax-free income anywhere in the state. As for property tax, some local governments in Florida provide exemptions of up to $50,000-$75,000 for residents who are 65 years old and older. No wonder why it also has the highest population of senior citizens among all US states.
Colorado is famous for having lots of sunshine even during winter. It also boasts a beautiful array of mountain scenery, making it the perfect destination for old people who love high terrain.
The state may have one of the highest sales taxes in the US, but it makes up for it by offering some of the lowest property taxes. Also, retirement income is subject to $20,000 per year for those aged 55 to 64, and $24,000 annually for seniors 65 years old and above.
Colorado comes second on this list because of the ease in life it provides its senior residents. The state ranks second in its healthcare offerings and tenth in providing good quality of life to its citizens.
3. South Dakota
South Dakota is an inviting state for all types of residents, including senior citizens. Based on rankings, the Mount Rushmore State is fourth highest in fiscal stability and fifth in quality of life among all US states.
Tax-wise, this state is also interesting. The state does not collect state personal income tax. With this, pension income also comes tax-free for qualified senior individuals. There is sales tax in this state, but it is relatively low compared to other states.
Iowa may not be the choice of retirees who love a beach-side setting due to its geographical location. However, the state compensates by offering unfamiliar territories that will provide some quiet time for seniors.
Unlike most states on this list, Iowa collects inheritance tax, and its property taxes are high. Though, it offers seniors a discount of up to $6,000 in retirement tax deduction. Also, Social Security is exempt from the state income tax.
Virginia is a state for old souls. It offers an interesting rich history (such as producing eight US presidents) and it has a mountain range in the west and beaches in the east, offering plenty of options for retirees.
As for its taxes, the state is friendly to its retirees. The state exempts Social Security income from the state income tax. Also, seniors enjoy a discount of $12,000 annually in other forms of retirement income. This means that seniors who rely on $12,000 or less in retirement income no longer need to pay retirement income tax in Virginia.
Because of this, the state ranks ninth in offering good quality of life to its senior citizens.
The state of Wyoming boasts having the oldest national park in the world: the Yellowstone National Park. Also, it ranks pretty fair at 11th highest in providing a good quality of life to its residents. But for retirees, there’s more to consider beyond these positive traits.
Residents of Wyoming don’t have to pay state income or estate/inheritance taxes. They also pay low sales tax since the abundance of oil and minerals in the sales is enough to keep the state revenue high. Seniors also receive refunds in property and utility taxes of up to $900.
7. New Hampshire
Residents of this state enjoy not having to pay any state income, sales, or estate/inheritance taxes. There is a 5% tax on dividend interest, but individuals who are 65 and above have a $1,200 exemption. Also, people of this age who have been in the state for five years get another $5,000 off in property taxes.
Among all US states, New Hampshire provides opportunities to better living for its residents. These cover economic opportunities, equality, and affordability — all enticing for seniors looking for a retirement place.
Idaho doesn’t earn the nickname the “Gem State” for nothing. It is home to some of the most precious and semi-precious gemstones in the country, with the likes of the star garnet being endemic only in Idaho. But it’s not only the gems that appeal to retirees.
Property and sales taxes in this state are among the lowest in the US. Also, the state does not tax Social Security from its residents. And, public pensions for aged 65 and above qualify for a tax deduction.
In Utah, seniors will never run out of natural sceneries to visit. The state houses numerous national parks, national monuments, and national forests that retirees can visit anytime. And given these array of destinations, old residents have a lot of options for outdoor activities.
Unfortunately, Utah does not exempt Social Security from taxation. Utah does offer fairly low property and sales taxes to its residents, though.
There is one attraction that makes Arizona very famous: the Grand Canyon. It is a must-see destination for almost everyone, even for the retirees. For outdoorsy seniors who are into golf, the Grand Canyon actually offers over 70 public courses to choose from.
Just like other states, Arizona does not tax Social Security retirement benefits. And while sales tax is relatively high, property tax is fairly low.
When looking for the best states to retire in, don’t just consider the beautiful local attractions and destinations. Consider factors like taxation and government benefits to see if the state offers a good quality of life for retirees.
Is your state among this list of best states to retire in? If not, do you think it should make the list? Share your thoughts in the comments section below.