LEE COUNTY, Fla. - Retirees who flock to Southwest Florida come for the sunshine, the beaches, and the laid-back life. But it turns out the most desirable places to retire many not be the best for your pocketbook.
Kiplinger Personal Finance Magazine recently ranked the ten most - and least - tax friendly states for retirement. Florida doesn't make the cut.
Alaska was ranked the most tax friendly state for retirement, followed by Wyoming, Michigan, Pennsylvania and Colorado.
Alaska is renown for it's natural beauty. But what many may not realize is Alaska has no income tax or sales tax, and is the only state to give an annual rebate to its residents.
Florida receives high marks for no income tax, but loses points because of its sales tax In some counties, the sales tax is as high as 7.5 percent.
The study listed the five least tax-friendly states as California, Rhode Island, New Jersey, Vermont and Iowa.
Click here for an interactive state-by-state guide to taxes and retirement: http://www.kiplinger.com/tools/retiree_map/index.html?map=14#anchor
Click here for more on the best and worst states on the list: http://articles.moneycentral.msn.com/RetirementandWills/RetireInStyle/the-most-and-least-tax-friendly-places-to-retire.aspx?cp-documentid=26401060>1=33013