The Best States to Retire - Top Five Strategies For Saving the Most Money on Taxes

The best states to retire, according to the latest updates, are Delaware, Alaska and Kentucky. They offer the lowest overall tax rates for senior citizens. The one question you must ask yourself is, "Do I want to live there?" If you would rather live in a state that is more climate-friendly or perhaps somewhere closer to family, and still get the best tax breaks, then keep the following in mind:

1. Look for States that Offer the Lowest Property Taxes
This can get quite hefty when you are on a fixed income. Remember that tax rates on your property will continue to rise but your retirement income will not. Keep in mind that property taxes differ from city to city and even neighborhood to neighborhood. Sometimes moving a few blocks away can mean the difference of paying the government several thousand dollars a year less.

2. Forget about Focusing on States Without Income Tax
When a state does not tax income, they will usually tax you in other ways. And this can be worse for retirees. If you are fully retired and live on just your income from retirement, income tax will not play a major role.

3. Most States that Tax Income Give you a Break with Pension Income
Many states also provide either a specific homestead exemption or a deferral of property taxes to seniors as well.

4. Stay Away from Large Cities
Urban areas can be much more expensive than rural spots when it comes to taxes. They also carry a lot more stress. Keep this in mind when searching for the best places to retire.

5. Always request relocation information
Find out about proximity to medical and recreational facilities, as well as real estate prices and crime rate. Another good idea is to take vacations to your top choices. Think like a resident instead of a tourist and ask yourself if you could live there full time.

When searching for the best states to retire, look at the big picture. Focus on what will put the most money in your pocket in the long run such as lower property taxes. Remember that property taxes continue to go up but your retirement income does not. Many retirees think that relocating to states that offer no income tax is the cheapest. It is not. Instead look for states that give you the biggest breaks on property taxes first.

Get more information and tips for a frugal retirement in the free online guide at http://Your-Retirement-Paradise.com/