If your clients are super wealthy and want to avoid a big tax bill, they’re better off retiring in Michigan than in Maryland.
That’s according to a
States in the middle of the country generally fared much better, with the exception of Illinois (7) and Wisconsin (13). Nevada, Tennessee and Florida were among the frontrunners. (Note: Hawaii was left off the list due to a lack of estate tax reporting.)
While the coastal states generally trailed the pack because of higher taxes and costs of living, they fare much better in other categories like health care quality, weather and overall well-being.
The study estimated federal and state income taxes for the top 1% of earners. To determine income taxes, the study used an estimated household income of $465,626, the amount needed to crack the 1%, according to IRS data. Property taxes were based on a home value five times the income or more than $2 million and estate taxes were considered on an estate worth $15 million.
Total estate taxes reported in 2016 topped nearly $18.3 billion, according to the most recent
Here are the best and worst places for wealthy clients to retire based on total tax burdens, according to the SmartAsset study.