TL/DR: Is it worth retiring (fully residing or snowbirding for a substantial part of the year for tax reasons) in a state with no income tax? What are some factors to consider? Is there a net financial benefit?
I am starting to plan for retirement and one fundamental question is where to retire. I work in a state with an income tax, but am wondering if it would make sense to retire in a state with no income tax. Obviously this is a major decision.
I know a retired couple who have lived, and now 'snowbird' to FL for winter, but also have a residence up North. My guess is they are not just running from shoveling the driveway but are also doing this for tax reasons, possibly staying in FL longer than their home up North in order to claim it as their primary residence for tax reasons.
However, I am wondering whether all this is worth the hassle and whether it actually matters whether your primary residence is in a state with or without a state income tax. Or whether the expense of snowbirding (maintaining two properties -- assume no rental income from either) is worth the savings.
I understand the exact answer would depend on actual numbers but am looking for advice on whether generally this seems like a good retirement plan. What are some advantages and disadvantages of technically 'moving' (or snowbirding for an extended enough period to consider it primary residence) to a state with no income tax upon retirement? Lifestyle wise, are there other ways they 'get you' in such states?
I have found some online articles on the topic but none that seem authoritative or comprehensive enough to really dive into the topic. Any recommendations on good resources would be appreciated.