The allure of living in a state with no income tax in retirement can be undeniable. You won't have to worry about withdrawals or required minimum distributions pushing you into a higher tax bracket. Nor do you have to think about the state taxing some of your Social Security or pension. Plus, every dollar you save on taxes is another dollar you can spend on travel, hobbies, spoiling the grandkids, or leaving money to your heirs.
It's one of the reasons Florida, Texas and Tennessee are popular destinations for retirees. But relocating for the tax break doesn't mean you'll automatically save in retirement. Other living expenses could make it a wash, or worse, more expensive.
