For seniors who want to retire and relocate in another area of the United States, it makes sense to first evaluate the overall tax consequences of the location for a new home.

According to Kiplinger magazine in "Retiree Tax Heavens (and Hells)," federal taxes will stay about the same no matter where you decide to retire. The best tax-friendly state for people to retire will depend on their sources of income. "Many states that have an income tax exempt certain types of income—such as government and military pensions, Social Security benefits or even distributions from private pensions or retirement savings up to a certain amount each year." Property taxes can be a bigger concern because there are significant large fluctuations in costs depending on the city or county. State and local sales taxes can also put a dent in a retirement nest egg.

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