Think you have to leave your home state to save on taxes in retirement? Think again.

If you’re retiring in a state like California, New York, or even Louisiana, it’s true—the tax burden can be steep. But moving isn’t the only solution. With the right strategies, you can stay rooted while still protecting your wealth.

Here’s how to retire smart in a high-tax state.

Strategy 1: Partial-Year Residency

If you plan to split time between two states, consider establishing primary residency in a lower-tax state while spending limited time in the high-tax state. But be careful: state tax authorities closely watch this.

Work with a professional to document your change—driver’s license, voter registration, primary address, and more.

Strategy 2: Tax-Efficient Withdrawals

Many retirees unknowingly trigger higher taxes by pulling from the wrong accounts first. A strategic withdrawal sequence—balancing taxable, tax-deferred, and Roth accounts—can reduce your overall tax bill and prevent IRMAA penalties on Medicare.

Strategy 3: Charitable Planning Tools

Donor-Advised Funds (DAFs) and Qualified Charitable Distributions (QCDs) allow you to give generously while reducing taxable income. If you’re philanthropic, these tools let you make a difference while trimming your tax bill.

Strategy 4: Trust-Based Planning

In some high-tax states, inheritance and estate taxes can erode wealth quickly. By using irrevocable trusts, SLATs, or gifting strategies, you can pass on more wealth—and avoid surprise tax hits.

Want to see what’s possible in your state? Let’s design a retirement plan that fits your zip code and your goals.