Wills, Trusts & Estates Prof Blog

Editor: Gerry W. Beyer
Texas Tech Univ. School of Law

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Wednesday, August 28, 2013

5 Tax Considerations for Retirees

USA

As I have previously discussed, there are many state tax factors to consider before choosing a retirement destination.  Besides the obvious state income tax, here are five other tax factors to consider:

  1. Retirement-plan distributions.  Most states exempt a portion of pension income from taxation, but will often treat public and private pensions in different ways.
  2. Social Security benefits.  Fourteen states still tax them to some extent.
  3. Sales taxes.  State and local sales taxes need to be included in every personal budget analysis.  Some states exempt certain items 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 pay taxes in addition to federal estate taxes.

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

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