Low-tax retirement spots across the border
A stronger Canadian dollar has many people thinking about relocating in retirement, in hopes of enjoying milder weather and generally lower expenses.And, fueled by sliding home prices and a certain familiarity, the U.S. Sunbelt is always high on most snowbirds’ lists.
If you’re only going for a winter break, even one that lasts a couple of months, then U.S. taxes aren’t a great concern. But, if you see yourself staying longer than that, then you better start paying attention, particularly when you consider that states with low income taxes often have higher sales or property taxes, and vice versa.
For a state-by-state tax guide, including a rundown on how various types of retirement income are taxed, here's an interactive map that provides a snapshot of what the total annual state and local tax burden – income, property and sales taxes – would be in the capital of each state for a retired husband and wife, both of whom are 65.
Consider, of course, that most Canadian retirees abroad receive their income in loonies while their expenses are in a foreign currency. Managing this currency risk is one of the most difficult elements of living abroad, and it's likely to be a growing issue.
Like to compare notes with those who have already made the cross-border move or have even left the continent altogether? Browse the forums at travel site Canuckabroad.com.Tell us: Do you see yourself retiring across the border?
By Gordon Powers, MSN Money