Which retirement tax-free state would you retire in (and why)?

COL Thomas F. — Thu, 12 Oct 2017 10:43:21 -0400

Response by SP5 Lori Pong made Oct 12 at 2017 10:52 AM

SP5 Lori Pong — Thu, 12 Oct 2017 10:52:17 -0400

Maybe LA, weather is nice most of the year but it's a little to iffy with hurricanes so I'll probably stay right where I am.

Response by Capt Private RallyPoint Member made Oct 12 at 2017 10:56 AM

Capt Private RallyPoint Member — Thu, 12 Oct 2017 10:56:05 -0400

Well, I am not moving again. So IA.

Response by CAPT Kevin B. made Oct 12 at 2017 10:58 AM

CAPT Kevin B. — Thu, 12 Oct 2017 10:58:26 -0400

You have states which don't have an income tax at all like WA. ID stops taxing MILs at 65 and if you're at 40% disability, don't tax at all. People tend to go where their bones don't hurt, like the lifestyle, and can do it on a more fixed income. HI is very expensive along with NY and NJ. WI, MA, MI, etc. have cold winters. As it turned out, I'm in ID which is very rural south of the Canadian border. I overcome the winter with diesel and hydraulics. It's a matter of having stuff to overcome the aspects of the area you live in. I just spent time in FL and again am astonished at the number of retirees who essentially are held hostage by air conditioning. I typically don't hear much about being in a particular state because of income tax as they extract it by other methods.

Response by Cpl Tou Lee Yang made Oct 12 at 2017 11:00 AM

Cpl Tou Lee Yang — Thu, 12 Oct 2017 11:00:47 -0400

Thailand

Response by CPT Lawrence Cable made Oct 12 at 2017 11:05 AM

CPT Lawrence Cable — Thu, 12 Oct 2017 11:05:23 -0400

I would look at the overall cost of living rather than just the income tax rate. As an example, Kentucky has an income tax that has the top rate of 6 percent, but usually ends up #15 or #16 in overall cost of living. Plus a number of states have some or total tax exemption for State, Federal and Military pensions, Kentucky exempts 41 grand. Sales tax rate is moderate and the hunting and fishing is good.

Response by PO1 Don Gulizia made Oct 12 at 2017 11:19 AM

PO1 Don Gulizia — Thu, 12 Oct 2017 11:19:46 -0400

Maybe Hawaii, if I win the lottery. As of now, I'm looking at Tennessee. It is a tax-friendly state for retirees. Plus, the weather is not as harsh as most of it's southern and northern neighbors.

Response by SGT Joseph Gunderson made Oct 12 at 2017 11:25 AM

SGT Joseph Gunderson — Thu, 12 Oct 2017 11:25:55 -0400

I am in KS now. This was home when I was in high school and it works for now while I complete school. It isn't a bad place, God knows that there are worse, but I plan on probably moving to WA or MN after this stint in school. When it is all said and done, as in when I finally retire for good, I will probably find my way back to WA. I always liked it there.

Response by SFC Andrew Miller made Oct 12 at 2017 12:03 PM

SFC Andrew Miller — Thu, 12 Oct 2017 12:03:15 -0400

While we may end up doing a little snow-birding later on, I would choose Wisconsin again if I knew what I know now. I was from Michigan and my wife (also a vet) was from Wisconsin. We looked over different veteran benefits, cost of living, quality of life, job market, etc. for all of the states in the Midwest. We chose Wisconsin, because in addition to the income tax exemption, they have great educational and recreational benefits. They have a diversity of industry that has job offerings for people of all levels in all fields.

Through the Wisconsin GI Bill, if you are rated at a 30% disability rating or higher through the VA, you, your spouse, and your children ages 18-24 can attend a state university or state technical school for up to 128 s.h. tuition free. Those who entered the military from Wisconsin can get the benefit immediately (after using Post 9/11). Those who were from another state have to live in Wisconsin for 5 years before the spouse and children are eligible.

They also offer other training/retraining grants, licensure/certification fee waiver, and other assistance programs. There are discounted or free park passes, hunting/fishing licenses, among other stuff depending on service and/or disability rating.

While I will always be a fan of my hometown Lions, Tiger, Red Wings, and Wolverines, I can't say enough good about the state here.

Response by SCPO Edward DeAngelis made Oct 12 at 2017 12:14 PM

SCPO Edward DeAngelis — Thu, 12 Oct 2017 12:14:50 -0400

You forgot Fl

Response by SSG Private RallyPoint Member made Oct 12 at 2017 1:23 PM

SSG Private RallyPoint Member — Thu, 12 Oct 2017 13:23:03 -0400

The Gulf Coast of AL is nice and has a reasonable cost of living.

Response by SGT Jim Ramge, MBA made Oct 12 at 2017 1:41 PM

SGT Jim Ramge, MBA — Thu, 12 Oct 2017 13:41:49 -0400

Haven’t decided as of yet... Too many things to ponder! Weather, earthquakes, big cities, crime, laws, VA healthcare, activities, land, cost of living on top of what has already been stated.

Response by 1SG Dennis Hicks made Oct 12 at 2017 2:16 PM

1SG Dennis Hicks — Thu, 12 Oct 2017 14:16:23 -0400

Right now PA with a possible of NC down the line, I would not only pick a place because of lower taxes, though that would be a strong reason. I would pick a place where I can live without fear of being killed or robbed at the drop of a hat. I have had my fill of big cities and dishonest local politicians. I just want to slow my roll, be able to eat , pay my bills , see my family/grand kids and have some social contact with good neighbors till I take my dirt nap.

Response by SFC Dennis A. made Oct 12 at 2017 2:22 PM

SFC Dennis A. — Thu, 12 Oct 2017 14:22:43 -0400

My wife and I looked at a couple of them but the one thing none of them offered was family. So we moved back home to Minnesota, the Land of 10,000 Taxes.

Response by MSgt Doug P. made Oct 12 at 2017 2:36 PM

MSgt Doug P. — Thu, 12 Oct 2017 14:36:23 -0400

I'll stick with Texas. No income tax at all. And if you have a 100% VA disability rating, no property taxes at all. Plus the cost of living is relatively low.

Response by Maj Private RallyPoint Member made Oct 12 at 2017 3:48 PM

Maj Private RallyPoint Member — Thu, 12 Oct 2017 15:48:02 -0400

And starting in 2018 there are no state income taxes on military retirements in Arkansas.

Response by MAJ Private RallyPoint Member made Oct 12 at 2017 3:54 PM

MAJ Private RallyPoint Member — Thu, 12 Oct 2017 15:54:49 -0400

Lots of good choices. I'll give you some pros and cons of Mississippi.
Pros: Low cost of living. It's basically summer 10 months a year so if you like outdoor activities, it's nice. You're not far from the gulf coast (Alabama's). The people are generally really nice. Slower pace of life. I live in central MS and I'm approximately a 6 hour drive from Atlanta and Dallas. 4 hours to Orange Beach, AL or 6 hours to Destin, FL. 3 hours to Memphis. Plenty of small towns if you're wanting to get "away from it all". It rarely snows.

Cons: It gets really hot and humid here. Seriously, it's no joke. It's the price you pay for having long summers I suppose. The Mississippi coast pretty much sucks (that's why you've got to go to AL or FL for vacation). There's not a ton of stuff to entertain you here (see driving distance to other places above). Fireants. Mosquitos. Ticks. We love our college football here but it's tough watching our teams lose...a lot.

Response by SSgt Ryan Sylvester made Oct 12 at 2017 4:11 PM

SSgt Ryan Sylvester — Thu, 12 Oct 2017 16:11:37 -0400

I'll retire in MI. Mainly because I already live here. But that said, you have the largest variety of country available. Like the small lake life? We've got tons of those. Like the ocean? The Great Lakes (we have three and a small part of a 4th of those) appear as vast as the ocean, without all that pesky salt in the water. Like mountains and waterfalls? The UP has those over on the western side. Country life? PLENTY of that to go around. Big city? We've got several of those (not even counting Detroit) and Traverse City is growing larger by the minute. All you have to deal with is a little snow.

Bad thing? Our roads suck. Hard.

Response by MSgt Wayne Morris made Oct 12 at 2017 4:28 PM

MSgt Wayne Morris — Thu, 12 Oct 2017 16:28:53 -0400

Texas but stay away from the nests of California economic refugees that are infiltrating the state and then automatically tell you what you/Texas is doing wrong.

Response by Cpl Justin Goolsby made Oct 12 at 2017 4:59 PM

Cpl Justin Goolsby — Thu, 12 Oct 2017 16:59:13 -0400

Definitely not Tax-achusetts. They tax everything and the cost of living is ridiculously high.

Response by LT Charles Baird made Oct 12 at 2017 8:32 PM

LT Charles Baird — Thu, 12 Oct 2017 20:32:37 -0400

So what you are saying is that if you retire in any of these states you don't have to pay any taxes on your retirement? Not even Federal taxes?

Response by COL Thomas F. made Oct 12 at 2017 10:48 PM

COL Thomas F. — Thu, 12 Oct 2017 22:48:50 -0400

So as with any source, it seems to change as you hop around. Here is what military.com had to say on the matter. They also had Connecticut listed but not Hawaii. They also listed the states that have special military retirement pay exemptions as some of you mentioned. Glad there are choices out there, some better then others depending on when you retired/enlisted and how old you currently are. I appreciate all the feedback.

Response by GySgt Brian Johnson made Oct 12 at 2017 11:54 PM

GySgt Brian Johnson — Thu, 12 Oct 2017 23:54:17 -0400

I chose South Dakota. No state income tax. Low cost of living. Great gun laws. Four seasons ( I'm currently stationed in the desert and I miss four seasons) and I already have a job.