« Canadian companies to reverse hiring freezes soon: report | Main | Has your mechanic ever taken you for a ride? »

November 18, 2021

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.

More importantly, warn the folks at Kiplinger's, bear in mind that certain tax-friendly states could become much less welcoming as they scramble to find new sources of revenue to bolster recession-shredded budgets.

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



Post a comment


Gordon PowersGordon Powers

A long-time fund company executive, Gordon Powers now heads up the Affinity Group, a financial services consulting firm. Gordon was a personal finance columnist for the Globe & Mail for many years, has taught retirement planning...

Jason BucklandJason Buckland

The modern-day MC Hammer of money, Jason can often be seen spending cash that isn’t his with the efficiency of a Wilt Chamberlain first date. After cutting his teeth as a reporter for the Toronto Sun, he joined the MSN Money team with...