If you have a solid retirement portfolio, chances are you are paying federal taxes on the income it generates. If you’re unlucky enough to live in a state with its own income taxes, you could be paying even more.
There is one foolproof way to get more from your retirement revenue streams, and that is to move to a state which doesn’t force you to pay taxes on your income.
I have written a number of posts on how you can determine where best to live in retirement. Here’s a sample:
- Your Retirement Life: Looking for Tax Freedom? Here’s Where to Find It
- Your Retirement Life: How Do You Know Where to Live in Retirement?
- Where to Live to Save for Retirement. It’s Not Where You Think
- 10 Worst States to Retire in for Taxes
- Retirement State: Which States have the Highest Estate or Inheritance Tax?
Now, Renwick Wilson, at Fox Business, has assembled a tidy list of the states without income taxation. He writes:
Recent studies have found that Americans are becoming increasingly concerned that they will outlive their savings, with more than 30 percent of Americans expecting that they will need more than $1 million in retirement, according to NerdWallet.
Taxes on retirement benefits, as well as interest and dividend income, place additional financial strain on Americans’ retirement plans.
For those looking to maximize their retirement income by minimizing their taxes, here are the seven states without an individual income tax.
- South Dakota
Read more here.