In the quest for a place to call home, individuals and families weigh a myriad of factors to find the perfect balance between affordability, quality of life, and economic opportunity. The United States, with its vast and varied landscape, offers a plethora of cities each boasting unique advantages for residents. From the sun-drenched beaches of Florida to the tech-rich valleys of California, the choice of where to settle involves careful consideration of real estate values, tax implications, and the vibrancy of local job markets.
To identify the cities most and least favorable for retirees in terms of taxation, GOBankingRates analyzed the 50 largest U.S. cities by population, utilizing Zillow’s data from December 2022. The evaluation was based on five key metrics: the total estimated annual taxes paid in retirement, the state’s effective retirement tax rate, annual property taxes paid, the estimated property tax rate, and the sales tax rate. While a 0% tax rate significantly contributed to the tax-friendly status of many cities, the absence of retirement taxes alone did not guarantee a city’s tax-friendliness. For instance, cities like Jacksonville, Florida; Chicago, Illinois; and Nashville, Tennessee, despite their 0% tax rates, were deemed less tax-friendly due to their combination of high sales taxes and substantial annual property taxes.
This article delves into the top 15 cities that stand out for their compelling combination of affordable real estate, favorable tax conditions, especially for retirees, and robust job opportunities, providing a comprehensive guide for anyone considering making a move.