There are breathtaking views — and no taxes on Social Security benefits.
Many people stay where they are when they retire. But plenty of others decide to relocate. If you’re thinking of moving in retirement, here’s a destination state to consider: Idaho.
Let’s review some of Idaho’s pros and cons as a retirement destination. For starters, Idaho boasts a lot of natural beauty, with national and state parks, mountains, forests, and lakes. So if you’re into activities such as hiking and fishing, you’ll be all set. The state also offers cultural attractions, like museums and art galleries — particularly in its cities and towns such as Boise and Sun Valley.
Image source: Getty Images.
Idaho is also relatively affordable. Its average home sale price was recently $461,661, above the national average of $364,056. Still, its overall cost of living was quite close to the national average, just 6.1% over, per the World Population Review.
Utility costs were well below the national average, while healthcare costs were close to average. Regarding healthcare, the folks at MedicareGuide.com have rated Idaho the 17th-best state in the nation for elderly healthcare. That’s not the best, but it’s better than more than 30 other states. Healthcare is more available in some areas than others, though, so do your research before moving.
Then there are taxes. Idaho charges a flat 5.8% tax on income, pensions are only partially taxable, and 401(k) and individual retirement account (IRA) withdrawals are taxable. On the plus side, Idaho is one of the 41 states that doesn’t tax Social Security benefits — and it offers a property tax exemption of up to 50% of the value of homes.
One possible drawback for some retirees is Idaho’s winter, which can be quite cold and snowy. That’s a plus for others, though, who would balk at Florida’s heat and might enjoy skiing. Another drawback is the chance of wildfires. Idaho homeowner insurance costs are reasonable, but they don’t always cover wildfires, so those in Idaho might want to add that coverage.
If Idaho might be a good fit for your retirement plan, learn more about it.
