Where Income Goes Further

Preserving wealth is a top priority for many retirees and pre-retirees. State taxes can have a significant impact on retirement income, affecting Social Security benefits, pension payments, and IRA and 401(k) withdrawals. As living costs continue to rise, many older investors are taking a closer look at where they live and how state tax policies may influence their long-term financial security.

As shown below, several states offer favorable tax treatment for retirees, allowing residents to keep more of their hard-earned retirement income if they decide to relocate.

Taxes shouldn’t be the only factor when considering relocation. Property taxes, insurance costs, health-care access, housing prices, and overall cost of living can significantly affect affordability in retirement. Florida, for example, has no income tax but many retirees face higher insurance costs.

Regardless, the tax implications of where you live can have a meaningful impact on your financial future. Jemma Financial can help you explore ways to maximize retirement income and align your plan with your long-term goals. Find out more by reaching out to a Jemma Financial Advisor.

Source: AARP, 3/18/26. Tax laws and regulations subject to change. The information presented is believed to be accurate as of the publication date but should not be construed as tax, legal or financial advice. Readers should consult a qualified tax professional regarding their individual circumstances before making any decisions. Income Tax Filers data from Tax Foundation and based on IRS migration data for 2022-2023.