Retiring in a warm climate sounds like a good idea, no matter where you’re from or what time of year it is.<\/p>\n
And it’s not just because cold weather cuts into beach and shuffleboard time. The high-temperature states are also where the discerning American retiree finds the most favorable tax rules.<\/p>\n
Don’t miss<\/p>\n
If you\u2019re looking to retire to a place that\u2019s not only warm but also keeps thirsty governments away from your hard-earned, post-career assets, you have options. Some U.S. states even have a golden combination of temperate climates, no income taxes, no pension taxes, and no taxes on distributions from retirement plans \u2014 regardless of your age or wealth.<\/p>\n
Florida<\/p>\n
Let\u2019s get the obvious choice out of the way: The Sunshine State is very hospitable to retirees and their money. The state famously lacks a state income tax, which means you won\u2019t pay any tax on your pension.<\/p>\n
Assuming you can stomach the state\u2019s real estate costs and the occasional hurricane, your 401(k) and IRA distributions will go further since Florida doesn\u2019t tax distributions from those plans. And Social Security? No taxes on that, either.<\/p>\n
Nevada<\/p>\n
Retiring to the Silver State is a safe bet, since Nevada is another state that doesn\u2019t have income tax, which like Florida means no taxes on pensions, retirement plan distributions or Social Security<\/a>.<\/p>\n Nevada is home to many of the nation\u2019s top retirement destination towns, with the suburbs outside of Las Vegas offering the tempting combination of warmer temperatures in winter and access to casinos and other entertainment year-round.<\/p>\n Read more: You don\u2019t have to be a millionaire to gain access to this $1B private real estate fund<\/a>. In fact, you can get started with as little as $10 \u2014 here\u2019s how<\/strong><\/p>\n Texas<\/p>\n Though recent winter conditions have proven challenging even for Texas, you can generally expect to stay warm in the Lone Star State. The tax breaks will warm your heart, too.<\/p>\n Texas doesn\u2019t tax state income. Nor does it tax Social Security, pension income or distributions from retirement plans<\/a>. Those factors, combined with a general lower cost of living and comparatively lower real estate costs, make Texas an attractive landing spot.<\/p>\n But government money lost to those tax breaks has to come from somewhere, which explains why the state has some of the nation\u2019s highest property tax rates.<\/p>\n Tennessee<\/p>\n If it’s good enough for Dolly Parton, why not you too?<\/p>\n There’s no income tax in this state, which means residents of Tennessee don’t pay taxes on their pensions, 401(k)s, IRAs or Social Security benefits<\/a>. The state also boasts a low cost of living, including low property taxes.<\/p>\n And if you’re looking for company in your golden years, Tennessee is also home to a number of retirement communities, which it promotes<\/a> through the Tennessee Department of Tourist Development.<\/p>\n Honorable mention: Hawaii<\/p>\n What about that other idyllic landing spot, Hawaii?<\/p>\n Unfortunately, Hawaii doesn’t quite make the cut: While Social Security income isn\u2019t taxed in the state, private pensions and retirement plan distributions are.<\/p>\n Of course, there\u2019s a good chance that if you\u2019re even considering Hawaii \u2014 with its high cost of living and soaring real estate valuations \u2014 you\u2019ve probably determined that you can survive those levies.<\/p>\n What to read next<\/p>\n