Frequently Asked Questions

Does moving to a state with no income tax automatically save me money?

Not always. States must generate revenue to fund roads, schools, and emergency services. A state with no income tax frequently compensates by levying higher property taxes, implementing steep sales taxes, or charging high vehicle registration fees. You must calculate your total estimated tax burden—income, property, and sales—to determine true savings.

Do I have to change my Medicare plan if I move out of state?

If you are enrolled in Original Medicare (Part A and Part B) alongside a standardized Medigap policy, your coverage travels with you anywhere in the United States. However, if you are enrolled in a localized Medicare Advantage (Part C) plan or a specific Part D prescription drug plan, you will likely need to enroll in a new plan tailored to your new zip code to avoid losing coverage.

How long do I need to live in a new state to establish residency for tax purposes?

Generally, you must live in a state for 183 days (more than half the year) to be considered a legal resident for tax purposes. You must also take definitive actions to establish domicile, such as registering to vote, getting a new driver’s license, and updating your address on all financial and legal documents. High-tax states will often audit retirees who claim residency in a low-tax state but spend significant time back in their original home.