Where would you like to live after you retire from the workforce? More important, how much will it cost for your living expenses within that place that you choose to live the last years of your life?
Generally those States within the United States of America that have a high population assess the highest taxes. The reason being is that public services such as public transportation, schools, parks, public facilities and public buildings cost money. The people who use those public services have to pay for those things like education for young people, as well as for adults.
That is why places like The State of New York, The States of Illinois and other high population, high commercial and high industrial manufacturing states have the highest taxes.
Beside a State’s income tax, there are sales and use taxes, motor fuel taxes, license taxes, tobacco and alcohol taxes, property taxes and service taxes that are paid by the consumers of those items. It cost money to maintain the State, County and City roads and highways.
That is why it is wise to retire within a state that has a low population or derives the majority of its revenue from tourism and/or legalized gambling. Montana, Nevada, South Dakota, North Dakota and Florida are the best places where a retired person can live well and pay the least taxes for doing so.
Keep in mind that you do not want to reduce your standard of living just because you desire to pay less taxes and that should also be a major consideration of where you retire. Most people do not want to live in a place where there is nowhere to go for shopping, fine dining, quality health care, other forms of entertainment or any other people to associate with within a short driving distance of where their home is located.
So now you can take South Dakota, Montana and North Dakota off your list of possible retirement locations. That is, if you are not a hermit and you prefer to go it alone, so to speak. Those places left include Nevada and Florida. They happen to not have a State Income Tax and many other tax rates are also low, relatively speaking, including Real Estate Taxes.
What do you want to do for fun after you retire? There is a great deal of fun to be enjoyed in both Nevada and Florida and gambling is legal within many places within Florida too. The environment, weather wise, is very different in Nevada than it is in Florida. The same is true for the availability of quality health care.
Money wise, Florida is the least expensive place to live within the United States of America and still be able to enjoy a very good standard of living. Being retired you do not have to work for an employer but you could find other ways in which to earn some extra money, make new friends and meet new and interesting people. It depends upon you as to how you want to live the last years of your life, no matter where you decide to call home.