Best States For Taxes - 06.25.24 | Market Sense | Fidelity Investments

Whether you dream of the beaches or the mountains, where you live can have a dramatic impact on your cost of living. On this episode of Market Sense, we take a closer look at how state income taxes can impact your disposable income and retirement savings. Plus, our Fidelity pros weigh in on the latest economic news and what it means for the summer months.
00:00 Intro
01:21 Latest market news
04:39 Economic commentary
07:47 State taxes and cost of living
09:36 Types of state taxes
12:06 States with no income tax
15:32 Highest and lowest effective rates
20:03 Timmer’s Take
Questions? Drop them below 👇 and we’ll reply right in the comments.
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[@likethesky]

Jurrien’s macro view was illuminating, particularly on earnings projections starting high and then lowering as the year goes on. My question for him:
Does the “earnings are staying higher than expected” theme apply to international markets as well (iow, were you speaking of worldwide earnings or just US earnings primarily)? If you were mainly focusing on US equities markets, can you comment on this phenomenon (have you also studied it) in international (developed, developing/emerging, or possibly even growth vs value factors as well)?
Thanks!

[@michaeloravecz5752]

Little value for people with retirement income as their main income source. There are states with no taxes on retirement income even though they have a 'significant' tax on earned income. The map could look quite different. Illinois is one such state.

[@timcornett2569]

Is there a calculator somewhere that could be used including differentiations between income vs capital gains vs interest vs dividends in all 50 states to determine best state for taxes?

[@Fidelity]

Hey, Tim. Thanks for reaching out.
Currently, we don't have a calculator that differentiates these types of income in all 50 states to determine the best state for taxes. If you don't mind, we'll pass your comment along as feedback.
As a reminder, Fidelity does not provide legal or tax advice; therefore, we highly encourage you to speak with a qualified tax advisor to review your situation before moving forward.
You can view some available tools and resources using the following link.
Tax Calculators & Tools
www.fidelity.com/calculators-tools/tax
We value all feedback and input, so please keep it coming! Feel free to comment if there's anything else you'd like to share.

[@daverogers5186]

I’m sorry, but that was a terrible presentation on state taxes. The two examples included one with $250K income and the other with $100K. The conclusions were totally different. Vermont was very cheap for $100K and very expensive for $250K.