taxes

5 ways to reduce taxes in retirement

Retirement » 5 Ways To Reduce Taxes In Retirement

Move to a tax-friendly state
Move to a tax-friendly state © Katherine Welles/Shutterstock.com

An easy way to reduce taxes in retirement is to move to a place that has no state income tax, such as Florida, Nevada and Texas. That's one thing that attracts retirees to the Sunshine State, besides the famously beautiful weather.

"Picking a state where they save state income taxes can be significant, especially as some states are 8 percent or 10 percent these days," Berger says.

State income taxes aren't the only consideration when contemplating relocation: Cost of living can vary based on a variety of factors, including insurance, heating costs, and property and sales taxes.

Moving is never inexpensive, but even after putting paper to pencil, some people may find that it might pay to live somewhere else.

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