Retirees are flocking to these 3 states — and fleeing these 3 states in droves

PERSONAL FINANCE


Reasons for leaving California include favorable income tax rates in other areas, Herron said.

California has a top individual income tax rate of 13.3%. The top marginal rates are lower in Oregon: 9.9%. They’re nearly half that amount in Colorado (4.63%) and Arizona (4.54%), according to the Tax Foundation.

Another consideration is how does your destination state treat retirement income? In all, 13 states tax Social Security: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah and Vermont.

Don’t forget to think about how other levies might affect your expenses.

Indeed, New Jersey — which is experiencing an outbound flight of residents — has an effective property tax rate of 2.13 percent, according to the Tax Foundation. It’s the highest in the country.

The Garden State also has a top individual income tax rate of 10.75 percent, applicable to income exceeding $5 million.

“A lot of places that don’t tax income have high property taxes, so we need to make sure it makes sense to move there,” Herron said.



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