Retirement By State
Thinking of changing your residence at retirement? Moving to a new state is a popular option, but deciding just which state is best for your retirement plans can be tricky. Besides finding a location that you enjoy most, economic and tax concerns might play a role in your decision. The following table provides a quick overview of tax rates in each state. For an in-depth discussion of state-specific tax concerns and retirement pros & cons, click on that state's retirement guide.
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State Retirement Guides
| State: | Cost of Living: | Sales Tax: | Income Tax: | Corporate Tax: | Per Capita GDP: | State Site: |
|---|---|---|---|---|---|---|
| Alabama Retirement | #11 | 4.0% | 2.0 - 5.0% | 6.5% | $32,390 | |
| Alaska Retirement | #49 | 0.0% | 0.0% | 1.0% - 9.4% | $63,846 | |
| Arizona Retirement | #36 | 6.6% | 2.59% - 4.54% | 6.968% | $35,000 | |
| Arkansas Retirement | #4 | 6.0% | 1.0% - 7.0% | 1.0% - 6.5% | $31,769 | |
| California Retirement | #48 | 7.25% | 1.0% - 9.3% | 8.84% | $46,992 | |
| Colorado Retirement | #33 | 2.9% | 4.63% | 4.63% | $46,199 | |
| Connecticut Retirement | #47 | 6.0% | 3.0% - 6.5% | 7.5% | $56,389 | |
| Delaware Retirement | #35 | 0.0% | 2.2% - 6.95% | 8.7% | $61,248 | |
| D.C. Retirement | NA | 6.0% | 4.0% - 8.5% | 9.975% | $174,500 | |
| Florida Retirement | #25 | 6.0% | 0.0% | 5.5% | $35,653 | |
| Georgia Retirement | #9 | 4.0% | 1.0% - 6.0% | 6.0% | $36,252 | |
| Hawaii Retirement | #50 | 4.0% | 1.4% - 11.0% | 4.4% - 6.4% | $45,308 | |
| Idaho Retirement | #12 | 6% | 1.6% - 7.8% | 7.6% | $32,082 | |
| Illinois Retirement | #20 | 6.25% | 5.0% | 9.5% | $43,378 | |
| Indiana Retirement | #15 | 7.0% | 3.4% | 8.5% | $36,168 | |
| Iowa Retirement | #14 | 6.0% | 0.36% - 8.98% | 6.0% - 12.0% | $41,247 | |
| Kansas Retirement | #7 | 5.3% | 3.5% - 6.45% | 4.0% | $39,913 | |
| Kentucky Retirement | #1 | 6.0% | 2.0% - 6.0% | 4.0% - 6.0% | $32,149 | |
| Louisiana Retirement | #21 | 4.0% | 2.0% - 6.0% | 4.0% - 8.0% | $42,755 | |
| Maine Retirement | #39 | 5.0% | 2.0% - 8.5% | 3.5% - 8.93% | $34,535 | |
| Maryland Retirement | #44 | 6.0% | 2.0% - 5.5% | 8.25% | $44,917 | |
| Massachusetts Retirement | #41 | 6.25% | 5.3% | 8.25% | $50,023 | |
| Michigan Retirement | #18 | 6.0% | 4.35% | 4.95% | $32,839 | |
| Minnesota Retirement | #33 | 6.88% | 5.35% - 7.85% | 9.8% | $44,600 | |
| Mississippi Retirement | #10 | 7.0% | 3.0% - 5.0% | 3.0% - 5.0% | $29,225 | |
| Missouri Retirement | #8 | 6.23% | 1.5% - 6.0% | 6.25% | $35,594 | |
| Montana Retirement | #30 | 0.0% | 1.0% - 6.9% | 6.75% | $32,859 | |
| Nebraska Retirement | #6 | 5.5% | 2.56% - 6.84% | 5.58% - 7.81% | $42,605 | |
| Nevada Retirement | #6 | 6.85% | 0.0% | 5.58% - 7.81% | $42,605 | |
| New Hampshire Retirement | #40 | 0.0% | 0.0% | 8.5% | $40,566 | |
| New Jersey Retirement | #46 | 7.0% | 1.4% - 8.97% | 9.0% | $49,840 | |
| New Mexico Retirement | #29 | 5.13% | 1.7% - 4.9% | 4.8% - 7.6% | $34,360 | |
| New York Retirement | #45 | 4.0% | 4.0% - 8.97% | 7.1% | $49,976 | |
| North Carolina Retirement | #22 | 5.75% | 6.0% - 7.75% | 6.9% | $38,437 | |
| North Dakota Retirement | #19 | 5.0% | 1.84% - 4.86% | 2.1% - 6.4% | $44,970 | |
| Ohio Retirement | #13 | 5.5% | 0.59% - 5.93% | NA | $36,421 | |
| Oklahoma Retirement | #3 | 4.5% | 0.5% - 5.5% | 6.0% | $39,881 | |
| Oregon Retirement | #38 | 0.0% | 5.0% - 11.0% | 6.6% - 7.6% | $41,435 | |
| Pennsylvania Retirement | #31 | 6.0% | 3.07% | 9.99% | $39,033 | |
| Rhode Island Retirement | #43 | 7.0% | 3.75% - 5.99% | 9.0% | $40,752 | |
| South Carolina Retirement | #28 | 6.0% | 0.0% - 7.0% | 5.0% | $30,845 | |
| South Dakota Retirement | #26 | 4.0% | 0.0% | 0.25% - 6.0% | $44,261 | |
| Tennessee Retirement | #2 | 7.0% | 0.0% | 6.5% | $34,828 | |
| Texas Retirement | #5 | 6.25% | 0.0% | NA | $43,032 | |
| Utah Retirement | #17 | 4.75% | 5.0% | 5.0% | $36,759 | |
| Vermont Retirement | #42 | 6.0% | 3.55% - 8.95% | 6.0% - 8.5% | $36,789 | |
| Virginia Retirement | #24 | 4.0% | 2.0% - 5.75% | 6.0% | $46,609 | |
| Washington Retirement | #37 | 6.5% | 0.0% | 0.0% | $45,881 | |
| West Virginia Retirement | #16 | 6.0% | 3.0% - 6.5% | 8.5% | $30,124 | |
| Wisconsin Retirement | #23 | 5.0% | 4.6% - 7.75% | 7.9% | $38,140 | |
| Wyoming Retirement | #27 | 4.0% | 0.0% | 0.0% | $65,199 |
*Figures as of 07/19/2011. Subject to change without notice.
**Figures may be averages or approximations ignoring ranges and exceptions.
Don't Put It Off, Jumpstart Your Retirement Plan Today
A comfortable retirement can only be secured with prudent planning, aggressive saving, and disciplined investing. Online research is a good start, but consider the benefits of discussing your options with a qualified financial advisor. The alternative could mean lost opportunities, higher fees, and lack of discipline. Request a free, no-obligation consultation today.
Speak with an advisor over the phone about your retirement plan for FREE.Definitions and Details
Cost of Living Rank: this number signifies how cost-effective it is to live in this state. Lower numbers are better (more economical) while higher numbers are worse (less economical). Cost of living rank does not take into account quality of life issues; it's only a measure economic value.
State Sales Tax: this number is the minimum sales tax changed by the state. It's important to remember that local counties, districts, and cities might charge additional sales taxes. It's safe to assume that actual sales taxes will be higher than this rate. Also consider that not all states charge sales tax on the same types of goods. Food, health care, prescription drugs, and miscellaneous services are often excluded.
State Income Tax: this number is usually a range because most state have a progressive income tax: the higher your income, the more you pay. Most retirees should plan with numbers from the high end of the range because those rates are easily reached if you earn over $50,000 per year.
State Corporate Tax: this number is included because many retirees are also small business owners and state corporate taxes can be decisive when considering between two otherwise desirable retirement locations. Corporate tax rates, like income tax rates, are often progressive: the more your business earns, the higher the rate. Keep in mind that financial service businesses are usually taxed at different rates than ordinary business.
Per Capita GDP: this number is the annual gross domestic product of the state divided by the total number of state residents. The per capita GDP gives a sense of how much the average, hypothetical resident earns. This number can serve as a standard against which to compare your annual salary or retirement income.
State Site: this is an outbound link to official state website where you can get more information about state policies, regulations, tax rates, and helpful resources like forms, guides, and important announcements.