Property taxes are only one aspect, though. It’s crucial to take into account the state’s overall tax friendliness when it comes to retirement. In light of their high taxes, Connecticut, Minnesota, and Vermont are the worst states to retire in, according to a recent analysis by Kiplinger. The high income, property, and sales taxes in these areas make it challenging for retirees to make ends meet.
On the other hand, certain jurisdictions have a reputation for being more senior-tax friendly. For instance, due to the absence of state income taxes, Wyoming, Nevada, and Delaware are some of the most tax-friendly jurisdictions for retirees. Due to Florida’s lack of state income and inheritance taxes as well as its homestead exemption, which enables homeowners to exempt up to $50,000 of their property’s worth from property taxes, it is also a highly-liked retirement location.
Whether a state taxes retirement income is another crucial consideration for retirees. Alaska, Florida, and Nevada are the only three states that don’t tax retirement income in any way. Other states, including New Hampshire and Tennessee, provide retirement income exemptions or credits.
In conclusion, it’s critical to examine both the mill rate and the state’s overall tax friendliness while deciding whether to retire in Maine. Even though Presque Isle, Maine, has a higher mill rate than Bangor, Maine, there are other aspects to take into account while making retirement plans. While states like Connecticut, Minnesota, and Vermont are recognized for having higher taxes that might be burdensome for retirees, states like Wyoming, Nevada, and Florida are known for being more tax-friendly to seniors.