Taxing States

Physician's Money Digest, November15 2004, Volume 11, Issue 21

One example:

When choosing a place to retire, thefirst thing many retirees look at iswhether a state has an income tax. Sevenstates (ie, Alaska, Florida, Nevada, SouthDakota, Texas, Washington, and Wyoming)have no income tax, but that doesnot necessarily mean you get a free ridein those states. You also have to weighother factors, like sales and propertytaxes. Florida taxes intangibleassets like stocks and mutual fundsat a rate of $1 for every $1000 in assetsabove a $500,000 threshold for marriedcouples ($250,000 for singles). Of thestates with income taxes, 15 tax SocialSecurity benefits and many tax IRA withdrawals.For a detailed look at the taxstructure for individual states, includinginheritance and estate taxes, check outthe Retirement Living Information Center(www.retirementliving.com).