When it comes to your peace of mind, living in a state with a high tax rate may mean more stress and less disposable income for your family over the long term. And while it’s never a good idea to move to another state simply because it has lower taxes, it’s nevertheless an added perk that makes everything easier, especially if saving for your retirement is a consideration.
Low Taxes in South Carolina
The great news for golf lovers? Some of the best states for low taxes also feature amazing communities with some of the finest courses nationwide. Take South Carolina. Their state income tax is 3%-7%, with state sales tax at 6%, making breathing a whole lot easier, presumably.
Dataw Island, SC: Great golf in a low-tax state.
And here are even more perks: groceries, some cold foods and even prescription medication, hearing aids and dental prosthetics are excluded from sales tax altogether.
Seniors don’t have to pay school taxes, and with no estate or inheritance tax, it also translates into far more pleasant news for estate planning as well. Indeed, if you’re over 65, you won’t pay taxes at all on the first $15,000 of your retirement income every year…regardless of where it came from.
Low Taxes in Florida
Not sure about South Carolina? What about Florida? It’s famous for more than sunshine, as the nation’s most renowned tax haven. With no state income, estate, or inheritance tax, its sale tax is 6%-7.5%, however.
As far as real estate, residents over 65 in some Florida cities and counties are eligible for homestead exemptions up to $100,000, depending on certain income limits. The biggest problem with living in the sunshine state, according to many residents? Handling the large numbers of friends and relatives who announce plans to come down for a visit!