Whether your motivation is to be closer to your family members or to downsize your “empty nest,” you may be considering relocation as you prepare for retirement. Due to the costs associated with living in another part of the country, however, moving can sometimes turn into a financial hardship.
The State Tax Calculator was recently developed by the National Center for Policy Analysis (NCPA) to help people determine the financial impact of moving to another state.
"Moving to tax-friendly states can make a major difference to your lifetime living standard," said Laurence Kotlikoff, a senior fellow at the NCPA who helped develop the calculator. "This unique tool considers your income, housing costs, and the three big taxes that matter most to your move - income, sales, and property taxes."
Pamela Villarreal, who is also a senior fellow for NCPA, added that retirees are especially vulnerable to tax burdens, given that they often have multiple income streams.
Speak up: How much weight do you give tax considerations when planning a move?