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Moving for Retirement? Key State Tax Insights for Medtronic PLC Employees

'Medtronic PLC 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.

'Medtronic PLC 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 Medtronic PLC, 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 Medtronic PLC 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 Medtronic PLC 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 are the eligibility requirements for the Medtronic Retirement Plan, and how do they apply to employees who were hired before and after the cut-off date of January 1, 2016? Employees need to understand these nuances, as they affect the types of retirement benefits they may be entitled to under the Medtronic Retirement Plan.

Eligibility Requirements: Employees hired before January 1, 2016, may be eligible for either the Final Average Pay Pension or the Personal Pension Account benefit, depending on their hire date. Employees hired or rehired after January 1, 2016, are not eligible for the Medtronic Retirement Plan(Medtronic_2016_June_Ret…).

How does the vesting process work for benefits accrued under the two types of pension benefits offered by Medtronic, namely the Final Average Pay Pension and the Personal Pension Account? Understanding how long employees need to stay with Medtronic to secure their benefits can influence their retirement decisions.

Vesting Process: The Final Average Pay Pension benefit becomes nonforfeitable after five years of service or reaching age 62, while the Personal Pension Account becomes vested after three years of service(Medtronic_2016_June_Ret…).

Can Medtronic employees expect any differences in the way their pension benefits are calculated if they decide to retire early versus waiting until normal retirement age? It's crucial for employees to know how early retirement might impact their payouts from the Medtronic Retirement Plan.

Early vs. Normal Retirement Calculation: Early retirement benefits under the Final Average Pay Pension will be reduced based on the age at retirement. For example, at age 55, employees receive 50% of the normal benefit(Medtronic_2016_June_Ret…).

In what ways can Medtronic employees maximize their Personal Pension Account benefits, especially regarding contributions and interest credits during their employment? Employees should consider strategies that could enhance the value of their retirement accounts when retiring from Medtronic.

Maximizing Personal Pension Account: Medtronic credits 5% of eligible compensation annually to the Personal Pension Account, which also accrues interest based on the 10-year U.S. Treasury rates(Medtronic_2016_June_Ret…).

How do the various forms of retirement benefit payments, such as annuities and lump sums, work within the Medtronic Retirement Plan? Employees must comprehend each option's benefits and drawbacks to make informed decisions about their retirement payouts.

Benefit Payment Options: Employees can choose between receiving their pension as a single life annuity, joint and survivor annuity, or a lump sum payment depending on their circumstances(Medtronic_2016_June_Ret…).

What protections does the Medtronic Retirement Plan offer regarding spousal benefits and qualified domestic relations orders (QDROs)? This understanding is particularly important for employees who may go through life changes, such as marriage or divorce.

Spousal Benefits and QDROs: The plan provides protections for spousal benefits, including joint and survivor annuities. QDROs may mandate the division of pension benefits in the case of divorce(Medtronic_2016_June_Ret…)(Medtronic_2016_June_Ret…).

How can employees ensure they receive all the necessary forms and meet the deadlines required to initiate their retirement benefits from Medtronic? The efficiency in this process is key for a smooth transition into retirement.

Forms and Deadlines for Retirement Benefits: Employees must contact the Retirement Service Center and submit required forms within 180 days of retirement to start receiving their benefits(Medtronic_2016_June_Ret…).

What specific steps should employees take if they receive a benefit denial or feel that they have been underpaid by the Medtronic Retirement Plan? Knowing their rights and the process for appealing decisions is essential for protecting their financial interests.

Handling Benefit Denials: Employees can appeal a benefit denial by submitting a written claim to the Plan Administrator within one year of discovering the issue. A formal appeals process is in place(Medtronic_2016_June_Ret…).

How does the Medtronic Retirement Plan guarantee the protection of pension benefits in the event of plan termination or underfunding? Employees will want clarity on how their pensions are safeguarded against uncertainties that could affect their retirement security.

Plan Termination Protections: The Medtronic Retirement Plan is insured by the Pension Benefit Guaranty Corporation (PBGC), which protects pension benefits in the event of plan termination(Medtronic_2016_June_Ret…).

For employees seeking additional information or clarification about their retirement benefits with Medtronic, what are the best ways to contact the Retirement Service Center? Establishing contact routes can assist employees in navigating their retirement planning effectively.

Contacting the Retirement Service Center: Employees can reach the Retirement Service Center for assistance by calling 1-844-335-9042 or visiting retirement.medtronic.com(Medtronic_2016_June_Ret…).