Mr. and Mrs. Jones are 70 years old and retired.

They have $48,000 in Social Security income, $18,000 in pension income, and $24,000 in earned income.

With $90,000 in total gross income each year, would you believe me if I told you that the Jones could have a zero percent income

tax rate in 20 different states, including a high tax state like New Jersey? How about a 0.3%

effective tax rate in California or 0.4% in New York? Welcome to the Stay Wealthy podcast. I'm your

host, Taylor Schulte, and today I'm going

to explain how this is possible. To help, I'm going to be sharing three important facts about

state income taxes in retirement. And really quick, before we dive in, just a quick disclaimer

that this is being published in the fall of 2022, and I am using currently known state tax

rates and policies for the different examples that I'm sharing, some of which are from

2021. Taxes and tax laws, we know that they can change quickly, so just know that you might come

to a different conclusion when crunching your own numbers depending on when you listen to

this episode. For all the links and resources mentioned today, just head over to you staywealthy.com

forward slash 172.

For those who don't know, my family and I live in San Diego, California. In fact, my wife and I have lived here

our entire lives. And being a native Californian, you can only imagine how many times I fielded

comments and questions about taxes in this state. California not only has the highest income

tax rate in the country at 13.3%, but we also have the highest sales tax rate at 7.25.

Like me, listeners in states like Hawaii, New Jersey, and New York, just to name a few,

are also probably reminded more than they would like about living in a, quote, high tax state.

But like most things in life, taxes aren't so black and white. Contrary to popular

belief, many of these high tax states are actually quite friendly to retirees. And many of the

...