When you’re looking for a potential retirement spot, keep taxes high on thecriteria—since whether a state has its own income tax, and if sowhat it taxes, can have a big impact on how much money you’ll haveleft to spend after April 15 has come and gone each year.

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Related: 10 retirement issues boomersface

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According to a Moneywatch report, high earners can be in for higher taxesthan the top rate of 39.6 percent if they add in the AffordableCare Act surtax—which may or may not survive the Trumpadministration—at 3.8 percent on investment income.

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But while federal taxes are important, state taxes vary so muchfrom one end of the country to the other that it may actually beworth picking up stakes and moving when you decide to leave the jobfor good.

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Related: 10 things to know aboutRMDs

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But you need to look carefully, since even though some states dotax income during retirement, some do so selectively, according tothe Tax Foundation—taxing income from working, forinstance, but not Social Security, government pensions ordistributions from retirement plans and IRAs. Others tax dividendsand interest, while still others only tax retirees whose incomerises above a certain threshold—and some, of course, taxeverything.

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Then there are tax brackets. Thirty-three states usegraduated-rate income brackets, with California and Missouri eachboasting 10 different rates while Kansas has only two. Eight statesthat tax wages have only one rate across all types of income.

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And some states have multiple bands across a narrow range ofincome, with, for instance, Missouri taxpayers hitting the tenthand highest maximum bracket at just $9.072, while in New Jersey thehighest bracket kicks in at $500,000. North Dakota’s highest taxrate is just 2.9 percent, while California’s is 13.3 percent.

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And some resort to other methods to raise money. For instance,the state of Washington doesn’t tax income, but has high taxes ongasoline and other fuels, while Texas has no income tax, but bothit and New Hampshire (which does have income tax, but only ondividend and interest income) have high property taxes. AndTennessee will get you on sales tax.

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Here are the 5 best (none of the five have an income tax, whichmeans they’ll all require additional research based on yourparticular circumstances) and 5 worst states, income tax-wise, forkeeping more of your retirement income.

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They’re not ranked in order, since each state has its ownvariations that will make it imperative for you to take your ownsituation into account.

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5 Best States for Keeping Your Retirement Income

Wyoming is one of the top states for its ability to help retirees keep their money rather than be taxed. (Photo: AP)

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5. Wyoming.

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Not only does Wyoming not have a state income tax, it has one ofthe lowest combined state and local sales tax rate in the country,at 5.40 percent.

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4. Nevada.

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Nevada’s combined state and local sales tax rate is 7.98percent, making it the 13th most expensive place to shopin the country. It may not have income tax, but you’re going tohave to spend money if you retire there, and it’ll get you thatway.

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3. Alaska.

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Alaska doesn’t even have a state sales tax—although it doesallow its municipalities to charge one. It also boasts the lowestaverage combined sales tax rate in the country, at 1.76percent.

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2. Washington.

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The state of Washington also relies on state and local taxes forrevenue; its combined rate of 8.92 percent places it as the fifthhighest in the country.

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1. Florida.

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Florida’s combined sales tax rate is 6.80 percent—not cheap, butnot horrible; it places the state in 28th place. And itsproperty tax rate of 1.06 percent rank it in 27thplace.

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Related: 5 best and 5 worst places to savemoney

5 Worst States For Keeping Your Retirement Income

Iowa was one of the five worst states, tax-wise, for retirees to hold onto their retirement money. (Photo: Getty)

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5. Iowa.

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Surprisingly enough, with a top tax rate of 8.98 percent, Iowaedged out New Jersey, at 8.97 percent, Washington, D.C., at 8.95percent and even New York at 8.82 percent.

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4. Minnesota.

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At 9.85 percent, Minnesota can be an expensive place tolive.

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3. Oregon.

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The state’s top tax rate is 9.9 percent, but surprisingly, it’sone of the states that doesn’t tax Social Security income.

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2. Maine.

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Maine’s top marginal tax rate is 10.15 percent, but it toodoesn’t tax Social Security income.

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1. California.

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With the highest top marginal tax rate (13.3 percent) in thecountry, California kind of hits the bottom even before owning upto 10 different tax brackets. In addition, its highest tax bracketkicks in at $1 million, known as the “millionaire’s tax.”

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Related: 13 steps to take in planning your futureretirement

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