Should I retire to a state that charges no income tax?

Retiring to a state (and county) that doesn't tax retiree income - or taxes it only lightly - might seem like a no-brainer. It's not. That's because those places may compensate for low income taxes with high property taxes or sales taxes. So make sure to factor in those other taxes too.

When you do the math on relocating to a different state or region, find out if you'll be in line for any "senior" tax discounts. Some states and localities offer reductions or exemptions on property tax for senior citizens.