The Effects of Retirement Income, Sales, and Property Taxes on Retiree Relocation
Differences in state tax treatment of retirement income, sales, and property value is a main driving factor in a retiree’s decision to permanently move to another state. Due to limited income, retired people are more likely to be concerned about their money. Because income and property taxes differ among states, there could be substantial differences in the number of retirees moving to one state over another for this reason. In addition, each state has different tax rates on sales, so retirees in some states will spend less overall on sales taxes as compared to other retirees in other states. In general, retired people would rather spend less on taxes to keep that money for things that they deem more beneficial for them.
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