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Moving for Retirement? Key State Tax Insights for MasTec Employees

Healthcare Provider Update: MasTec, a leading provider in construction and engineering services, primarily utilizes Aetna as its healthcare provider for employee health plans. Looking ahead to 2026, MasTec employees may face significant healthcare cost increases. With expected sharp hikes in health insurance premiums, especially in states like New York where proposals suggest increases of up to 66%, employees should be prepared. The termination of enhanced federal ACA premium subsidies could exacerbate the situation, potentially leading to a staggering 75% increase in out-of-pocket costs for many. As employers navigate these challenges, it is likely that benefit adjustments, including higher deductibles and out-of-pocket maximums, may become commonplace to offset rising expenses. Click here to learn more

'MasTec employees weighing a move in retirement should look beyond just income tax and consider the full state tax landscape to support smarter long-term planning,'—Paul Bergeron, a representative of The Retirement Group, a division of Wealth Enhancement.

'MasTec employees exploring relocation in retirement can benefit from understanding how different state tax rules may influence everyday expenses and long-term goals,'—Tyson Mavar, a representative of The Retirement Group, a division of Wealth Enhancement.

In this article, we will discuss:

How moving to a new state may influence income taxes in retirement.
The effect property and sales taxes can have on long-term living expenses.
Why estate and inheritance taxes matter for legacy planning.

Potential tax implications of moving

If you are thinking of moving to a new state when you retire, there are several factors to consider in advance. Beyond determining if the location suits your needs and lifestyle, it's important to find out how much you will owe in state taxes. That's because both your short- and long-term living expenses can be influenced by property and sales taxes. Additionally, certain states have estate and inheritance taxes that may affect your legacy planning.

Even if you plan to move to a state with no income tax after retiring from MasTec, look closely at the full tax landscape before making the leap. In truth, income tax is just one piece of a larger equation. Here are four core tax categories to keep in mind:

1. Income taxes

As of 2025, wage income is not taxed at the state level in nine U.S. states: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. This can make these states attractive to MasTec retirees who anticipate earning a higher income even after retirement.

If you plan to meet most of your income needs from pensions, traditional IRAs, and employer retirement plans, this income is generally subject to federal taxes and may be subject to state taxes. That said, most states do not tax Social Security benefits. Be sure to check if that's true in the state you'd like to move to. There are still nine states that impose income tax on Social Security, although they typically also offer exemptions or credits based on your income level. ¹

Comparing estimated state and federal taxes on retirement withdrawals can help clarify how your income could differ depending on where you live. State rules, exemptions, and formulas can vary widely.

2. Property tax

Property tax costs differ greatly depending on where you live. New Jersey, for instance, has an effective property tax of 2.23%, while Hawaii's property tax is only 0.27%. ² According to the U.S. Census Bureau, the national average is 1.02%. ³

In some states, eligible homeowners could see cost reductions through age-based or homestead exemptions. However, this is not universally true. This makes it important to understand the property tax landscape in advance of making any moves. Location and real estate values will heavily influence your total housing-related expenses in retirement.

3. Sales tax

Sales taxes can shape everyday spending, especially for retirees living on fixed income sources of revenue. As of 2025, 45 states impose a statewide sales tax, and 38 states have additional local sales taxes levied by counties or municipalities. ⁴ While exemptions for items like groceries or clothing may exist, they vary widely between states. And these exemptions typically do not mitigate sales taxes on other items, which average 7.52% nationwide. ⁴ Even in places without income taxes, the combined sales tax burden can noticeably impact the cost of living.

4. Inheritance and estate taxes

Other taxes you should consider before moving include those levied on estates and inheritances. These can be crucial as they may influence how much your heirs ultimately receive.

In addition to federal estate tax, 12 states and the District of Columbia impose estate taxes and five states levy inheritance taxes. And then there's Maryland, the only state that charges both. ⁵

Before relocating, be sure to review estate tax laws in both your current and future state of residence since rules and thresholds differ.

The bottom line

Taxes are only one piece of the cost-of-living puzzle. Housing, health care, and insurance may also factor heavily into retirement planning for those leaving the MasTec workforce.

Taking a full view of a state’s tax environment can help you make sound, well-considered choices. Working with a financial planner or tax professional can help you evaluate how a move could influence your income, assets, and long-term goals.

Want help analyzing your retirement move?

The Retirement Group can help you explore how taxes and benefits might shape your retirement income and relocation decisions.

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Sources:

1. Fidelity. ' Is Social Security still taxable? ' by Fidelity Viewpoints. 2025.

2. Rocket Mortgage. ' Property taxes by state: Ranked from highet to lowest in 2025 ,' by Joel Reese. September 12, 2025.

3. USA Today. ' These states have the highest property taxes ,' by Sara Chernikoff. July 18, 2024.

4. Tax Foundation. ' State and Local Sales Tax Rates, Midyear 2025 ,' by Jared Walczak. July 8, 2025.

5. Tax Foundation. ' Estate and Inheritance Taxes by State, 2025 ,' by Katherine Loughead. Oct. 28, 2025.

Other Resources:

1. Markowitz, Andy. “ Taxes on Social Security Are Based on Your Income .” AARP , 16 Apr. 2025, updated 12 Aug. 2025, www.aarp.org/social-security/retirement/federal-income-taxes/ .

2. “ Thinking of Moving to Another State? Before You Pack, Understand How Taxes Could Affect Your Finances .” Fidelity Viewpoints , 16 Oct. 2025, www.fidelity.com/learning-center/personal-finance/moving-to-another-state-taxes .

3. TurboTax Editorial Team. “ 9 States with No Income Tax .” Intuit TurboTax , 21 Sept. 2025, turbotax.intuit.com/tax-tips/fun-facts/9-states-with-no-income-tax/c9RZgthD3/.

4. “ How Do State and Local Estate and Inheritance Taxes Work? ” Urban-Brookings Tax Policy Center , Updated Jan. 2024, taxpolicycenter.org/briefing-book/how-do-state-and-local-estate-and-inheritance-taxes-work.

5. “ Property Tax Exemptions .” Texas Comptroller of Public Accounts , n.d., comptroller.texas.gov/taxes/property-tax/exemptions/.

What type of retirement plan does MasTec offer to its employees?

MasTec offers a 401(k) retirement savings plan to help employees save for their future.

Does MasTec provide a company match for contributions made to the 401(k) plan?

Yes, MasTec provides a company match on employee contributions to the 401(k) plan, subject to specific limits.

At what age can MasTec employees start participating in the 401(k) plan?

MasTec employees can typically start participating in the 401(k) plan as soon as they meet eligibility requirements, usually upon hire.

What investment options are available in MasTec's 401(k) plan?

MasTec's 401(k) plan offers a variety of investment options, including mutual funds and target-date funds, to suit different risk tolerances.

How can MasTec employees enroll in the 401(k) plan?

MasTec employees can enroll in the 401(k) plan through the company’s benefits portal or by contacting the HR department for assistance.

Is there a minimum contribution amount required for MasTec's 401(k) plan?

MasTec may have a minimum contribution amount, which employees should verify in the plan documents or by contacting HR.

Can MasTec employees change their contribution percentage at any time?

Yes, MasTec employees can change their contribution percentage at any time, subject to the plan's rules and guidelines.

What happens to MasTec employees' 401(k) savings if they leave the company?

If MasTec employees leave the company, they can roll over their 401(k) savings to another retirement account or withdraw the funds, subject to tax implications.

Does MasTec offer loans against the 401(k) plan?

Yes, MasTec's 401(k) plan may allow employees to take loans against their savings, subject to specific terms and conditions.

Are there any fees associated with MasTec's 401(k) plan?

Yes, there may be administrative fees and investment-related fees associated with MasTec's 401(k) plan, which employees should review in the plan documents.

With the current political climate we are in it is important to keep up with current news and remain knowledgeable about your benefits.

Name of Plan: MasTec, Inc. Pension Plan Years of Service and Age Qualification: Employees are generally eligible for the pension plan after completing 5 years of service and reaching the age of 65. For early retirement, employees can start receiving benefits at age 55 with 10 years of service. Pension Formula: The pension benefit is calculated based on a formula that considers the number of years of service and average salary over a specified period, usually the highest-paid years. Name of Plan: MasTec, Inc. 401(k) Plan Eligibility: Employees are eligible to participate in the 401(k) plan upon completion of 30 days of service. Company Contributions: MasTec offers a matching contribution up to a certain percentage of the employee’s contribution.

Restructuring and Layoffs: MasTec announced a restructuring plan in early 2024 aimed at streamlining operations and reducing overhead costs. This plan included a reduction of around 8% of their workforce, particularly targeting roles that overlap in their newly consolidated departments. The company cited the need to adapt to changing market conditions and improve efficiency as primary reasons for this move. It is crucial to monitor these developments due to the current economic climate, which affects labor markets and corporate stability. Restructuring can impact not just the employees but also investors and the broader economy. Benefit Changes: Alongside the layoffs, MasTec has revised its employee benefits structure. The company has introduced a more flexible benefits package, including adjustments to health insurance premiums and modifications to retirement plan contributions. These changes are in response to evolving market demands and cost-management strategies. Staying informed about these adjustments is essential given the broader economic and political context, as such changes can influence employee satisfaction and retention, and reflect broader trends in corporate benefit management.

MasTec provides stock options and RSUs to employees as part of their compensation package. Stock options are often granted to executives and key employees, while RSUs are typically awarded based on performance and tenure. In 2022, MasTec's stock options and RSUs aimed to align employee interests with company performance.

Employee Benefits Overview: MasTec provides a comprehensive benefits package which typically includes medical, dental, and vision coverage, among other options. Healthcare Plans: They offer multiple health plan options including PPO (Preferred Provider Organization) and HDHP (High Deductible Health Plan) with HSA (Health Savings Account) compatibility. Wellness Programs: MasTec includes wellness programs and resources to support employees' physical and mental health.