Unfortunately, Maryland does not show up on the list of the most tax-friendly states for retirees.
Will you be moving to one of these retirement friendly states?
If you are a baby-boomer and planning on retiring soon it's a good idea to discuss with your financial planner and CPA, the tax friendly benefits of moving to a state that does not tax pension income or does not have state income tax.
For instance, for residents of Maryland, it's probably not a stretch for many to move across the line to Pennsylvania or Delaware. They will realize the tax benefits these states offer retirees, yet still be close enough to family, friends and healthcare providers. Pennsylvania does not tax pension income and Delaware exempts a portion of pension income.
Tom Taylor, CPA is a fee-only, independent Financial Planner and Certified Public Accountant and can be contacted at Chesapeake Financial Advisors or Taylor & Company in Towson, MD. Tom believes that the greatest benefit of planning includes incorporating tax strategies with financial planning. Tom’s clients receive both services in one advisor. He is a member of NAPFA, the MACPA and AICPA.