Retiring in a state with zero income tax may sound appealing, but it can have hidden downsides. Moving to a no-income-tax state could lead to higher property or sales taxes, impacting your total tax burden. Some states with no income tax have high property tax rates, like Florida and Texas.

Relocating for tax purposes can be complex, with residency requirements to consider. State audit risks and maintaining a physical address are crucial. Some no-income-tax states may have booming housing markets with high prices, which can impact retirement savings. Lifestyle changes and leaving behind familiar amenities can also affect happiness.

Non-financial factors like leaving friends and family behind can impact overall happiness. Popular retirement states may not align with every retiree’s lifestyle preferences. Distance from family and reduced ability to visit loved ones are significant disadvantages of relocation. Consider all aspects before making a move for tax reasons.

Read more at Yahoo Finance: What Are the Potential Pitfalls of Retiring in a State With No Income Tax?