One of the crucial things to research before deciding where to move for your retirement years is what tax consequences the move may have−not just the process of moving but also the year-to-year, day-to-day expenses created by the tax codes in your new home.



You may be especially attracted to a state that has no state income tax, for example−but you should look closely at the other ways you will be taxed in that state. In many cases, local property taxes, sales taxes, gas taxes and estate taxes may more than make up for the missing state income taxes. Look, too, at the way businesses are taxed. Those who plan to run their own businesses in their new residential area may face inflexible B&O" (Business & Operations} taxes based largely on the business's gross income.



How to begin exploring this important factor in your decision about where to move? Start with the "Taxes by State" guide at www.retirementliving.com. Be sure you read carefully. Arizona, for example, has a state sales tax of 5.6%; California's is 7.25%. But local municipalities add to the sales tax, in some cases {Arizona} resulting in a combined rate of 10.7%, where California tends to top out at 8.75%.



This website also features great information about other aspects of retirement living. For assistance call Beth at 425-450-5208 or email her at beth@bethbillington.com.