While taxes are definitely an important
consideration, I always encourage folks to make sure they don't let the tax
tail wag the dog. Quality of life and connections with family and friends
should generally trump tax concerns. Having said that, it's very smart of you to be
thinking about this...and if most of your retirement income will be taxed at
ordinary income rates, then it often does make sense to move. Be sure, though, that you also consider the
impact of other taxes in the destination state, especially sales and property
taxes. The move may look attractive at first blush, but it might just be
trading one pain for another. There are currently seven US states with no
income tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and
Wyoming. Tennessee and New Hampshire also have no income tax per se, but they
tax dividends and income from investments. Hope that helps. Good luck as you consider your
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