COVID-19 and Tax-Free States for Retirement income

Despite an ongoing COVID-19 pandemic, the real estate market has been too hot to touch for many in need of housing for 2nd year in a row. Unexpectedly, many buyers have come out to buy a new home to replace their currently stuffy house, or to release their stress of dealing with the pandemic.
Government has provided 2 Economic Impact Payments. Recently Pres. Biden proposed $1.9 Trillion for the 3rd Stimulus checks for the all qualified Americans.

Americans have become smarter than ever before.
Americans have started to learn to save money from this harsh economic circumstance, along with learning how to maintain and know things better to secure a safer umbrella. Included are many retirees looking for the places that are more beneficial to live with less burden of paying to Uncle Sam.

For most retirees, they do not have enough money saved to live comfortably indefinitely. Those that are lucky equally fear not having enough to cover their twilight years. Both groups are thinking about moving to places that provide less financial burdens or disturbances, especially in light of the recent pandemic.

There are three main types of states taxes: income tax, property tax, and sales tax.

Tax-friendly states, or the “7 States” are Alaska, Florida, South Dakota, Texas, Washington, Nevada, Wyoming. Like Illinois, Mississippi and Pennsylvania do not tax retirement income (401(k), IRAs, Pensions), but they tax on interest income and dividends. Alabama and Hawaii don’t tax pensions, but they do tax on distributions from 401(k) plans and IRAs.

Most seniors have experienced how vulnerable human beings are. With the pandemic bringing health issues to our minds, seniors now truly understand the importance of living near healthcare in proximity while also enjoying a quiet suburban community living. The above 7 states as a result continues to be popular destination for those thinking of moving for their retirement.

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