Retirement opens the door to new possibilities, and for many people, that includes relocating to a new state. A lower tax bill can make retirement savings stretch further, but chasing a tax-friendly destination without doing enough research can create expensive surprises. A state that looks perfect on paper may carry hidden costs that offset every dollar saved.
That is why comparing retirement tax states requires more than a quick glance at income tax rates. Some states completely avoid taxing retirement income, while others offer partial exemptions or special treatment for certain accounts. The smartest retirees evaluate the entire financial picture before loading the moving truck.
