Moving to a low-tax state may be cost-effective for retirees

A number of factors may come into play when retirees are deciding where to move for their retirement. However, for those concerned with the expenses they might incur after they stop working, selecting a destination with minimal taxes may maximize retirement savings. According to the San Francisco Chronicle, six destinations may be the best places to move for low income and property taxes.

Alaska and Texas are two states in the U.S. that lack an income tax. Alaska, which implemented a 5 percent sales tax to help make up for the lack of income tax, also has a provision in its capital city that allows seniors 65 and older to receive a sales tax exemption card.

For those who can't handle the cold, Texas may be a better option, as the state is also income tax free. Though there is no provision that allows senior citizens to avoid the state' sales tax, in the town of Stafford, there is no property tax, according to the source, which can lead to major savings for seniors.

Seniors who move to New York and New Jersey can receive a tax exemption for their social security income, the source says.

Other states the source mentions include New Hampshire, where there is no sales tax, as well as Tennessee. According to Reuters the trend of moving to low-tax states has been picking up pace with young individuals as well as retirees.  

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