I have had many conversations with clients over the last week about buying real estate somewhere they would like to retire. Makes sense right? The stock market is topsy turvey right now and rather than have cash sitting idly in a bank account, lets invest!
So where to retire? Well according to Kiplinger’s research, the top cheapest states to retire in are Delaware, Hawaii and Wyoming. Not what you expected? Me either!
Well Delaware has no sales tax, low property tax, no inheritance tax and a max income tax of 6.6%. Most surprisingly, Hawaii with its high income tax pf11 %, property tax and sales tax of 4.4%, still comes in second because your social security income is not taxable in this state. So for retirees with low income, Hawaii is a great solution. Wyoming has no state income tax and relativelty low sales and property taxes (combines at 5.3%) and no estate tax.
Which os these three States feels like a good fit for you?