Where you decide to retire can be very important because state income and estate taxes can have a pronounced impact on your overall tax picture.
Changing your domicile (residency) to a state with a more favorable tax climate can save you a lot of tax dollars. For example, some states don't tax retirement account distributions, while some states assess estate tax at much higher marginal tax rates than others.
A state can tax you and your assets only if you are domiciled in that state. To determine your residency status, states will consider factors such as the following:
Where you are registered to vote
Where your automobiles are registered
Where you own real estate
Where you lived for most of the tax year
Contact us if you wish to discuss residency issues.