UPDATE: With 2019 closing, it’s a good time to take stock of your financial situation. Are you being held back by the heavy taxation in your state? Is it possible for you to escape by moving to a different locale? If so, here are the lists of the best and worst states for taxes in 2019. Read with care.
In retirement, there’s nothing that can affect your standard of living more than taxation. Property taxes, taxes on your investment income, and even sales taxes can make all the difference in your ability to pursue the retirement dreams you’ve been working toward for years. Each year Kiplinger releases a ranking of the best and worst states for taxation. Here they are:
The Best States for Taxation in 2019
- South Dakota
- North Dakota
- New Hampshire
The Best State for Taxation in 2019
The best state for taxation was Wyoming. With no individual or corporate income tax rates, low property taxation and a reasonable sales tax rate, Wyoming captured the top spot for tax-friendly states in 2019.
Since 2010, Wyoming has experienced population growth of 2.5%, which isn’t bad for a mountainous, somewhat colder, inland state.
The Worst States for Taxation in 2019
- New York
- New Jersey
The Worst State for Taxation in 2019
Illinois fared worst in the rankings thanks to its high property taxes. Illinois residents have faced property taxes that have grown faster than the national average, and only New Jersey has higher property taxes today.
Illinois also has high income taxes for corporations, high sales taxes, and high estate taxes. In all, families and small business owners face a gauntlet of taxation. That might explain Illinois’ 0.7% loss of population from 2010 to 2018. Only West Virginia, dying from the federal overregulation of its coal mines has experienced worse declines in population.
How Can You Avoid State Taxation in Retirement?
If you want to avoid state taxation in retirement, you need to choose where you live your retirement life. Whether that’s a ski town, college town, sub-tropical island, or the Live Free or Die state, you have to do your research, and make sure you find the best place for you. Taxes are certainly a variable you should scrutinze. After all, it’s your retirement life.
Originally posted on October 3, 2019.
E.J. Smith - Your Survival Guy
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