4) Move to a State with no Retirement Income Tax
If you’re open to moving anywhere after your retirement, try moving into a small house in a state with no taxes on retirement income. There are many states that offer this, including beautiful and warm southern states like Mississippi and Georgia. Plus, if you’re hoping to move to Florida, you’ll be happy to hear that the Sunshine State has no state income tax at all. Also, permanent residences to Florida are entitled to a homestead exemption of $50,000. Some seniors can also qualify for additional exemptions. Another great option for retirees is Nevada. Like Florida, this desert state has no state income tax, and retirement income is not taxed. Throughout the United States, there are many states that offer low or no taxes on retirement income, making them a good choice for retirees who are looking to save money.