Although it might not be the first state that comes to mind when considering where to retire, Idaho has been gaining appeal among people searching for a luxurious yet reasonable retirement. What therefore makes Idaho a desirable retirement location? Let’s look at a few advantages of retiring to Idaho.
With its scenic beauty, outdoor leisure possibilities, and welcoming communities, Idaho has a great quality of life. The state is a sanctuary for outdoor enthusiasts thanks to its numerous landscapes, which range from mountains and forests to lakes and rivers. In comparison to many other states, Idaho also has a low crime rate and a comparatively low cost of living. The healthcare industry
For retirees, healthcare is a crucial factor, and Idaho has a solid reputation in this area. St. Luke’s Boise Medical Center and Eastern Idaho Regional Medical Center are just two of the state’s many highly regarded medical facilities. In addition, Idaho’s healthcare costs are considerably lower than the national average. Tax advantages
Idaho has some benefits for retirees in terms of taxation. The state does not tax Social Security benefits, and it grants pensioners over 65 a pension exclusion of up to $41,040. Idaho also has no estate or inheritance taxes and a comparatively modest property tax rate.
Idaho does, however, impose a business and occupation tax (B&O tax), which is a tax on the gross receipts of firms. Some states do not have a tax like that, but many do. You must take this tax into account whether you intend to open a business in Idaho or already operate one. The state with the friendliest tax laws is
There is no one-size-fits-all answer for the most tax-friendly state, so explore around. Your own circumstances and priorities will determine what you do. For instance, some states do not impose an income tax, while others do not impose a sales tax. While some states have large retirement income tax exemptions, others have high property tax rates.
However, Wyoming, Nevada, and Tennessee are among the states with the lowest tax burdens on retirees, per Kiplinger’s analysis for 2021. These states don’t have an income tax, and their property tax rates are moderate. Due to the absence of income taxes, South Dakota and Florida are included on the list as well. Florida also does not have an estate tax.
There are several advantages to retiring in Idaho, such as a high standard of living, reasonable healthcare, and retiree-friendly tax laws. Although the state does have a B&O tax, most retirees do not find it to be a deal-breaker. In the end, your particular choices and circumstances should determine whether you choose to retire in Idaho or any other state.