October 20, 2025 - Mississippi, but other types of income (including early withdrawals from retirement accounts) are still taxable. However, the income tax rate on taxable income is low, and it is set to decrease in the coming years. Tax on Taxable Income: Flat 4.4% tax rate for 2025 · (Note: Mississippi’s income tax rate will gradually decrease until it reaches 4% in 2026.) ... More: The Most Tax-Friendly State for Retirement.

August 26, 2025 - The most tax-friendly states for retirees aren’t just those with no income tax. They are the ones where Social Security, retirement withdrawals, property, and sales taxes align with your income mix. As of 2025, nine states still tax Social Security benefits, while most others fully exempt them; recent eliminations in Missouri, Kansas, and Nebraska boosted retiree-friendliness.

April 14, 2025 - Some of the most tax-friendly states for retirees include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming. Each of these states has no income tax, giving them an advantage over most other states.

3 weeks ago - Retire to tax-friendly states like Florida or Wyoming to maximize your spending power. Consider all taxes, including sales and property, when choosing your retirement state. Factor in lifestyle and proximity to family alongside tax benefits before relocating. The $23,760 Social Security bonus most retirees completely overlook › · The best states to retire for tax benefits are the ones that offer a range of lower taxes -- or none at all -- on income, property, sales tax, or inheritance.

Alabama offers that classic Southern charm and a slower pace of life that appeals to many retirees. But if you want more buzz, Birmingham offers a cosmopolitan contrast. Alabama ranks 19th in the country for percentage of senior residents. From a financial perspective, it’s one of the more tax-friendly states for retirees: Social Security benefits aren't taxed, and there are property tax breaks for older adults.

States that either have no state income tax, no tax on retirement income, or a significant tax deduction on retirement income. In addition, states in this category have friendly sales, property, estate and inheritance tax rates. ... States that do not tax Social Security income and offer an ...

June 5, 2025 - Are you in a tax friendly state for retirees? Explore the best states for taxes and review the income and sales tax rates in all 50 states.

You may also consider deducting ... Deduction. Save money on taxes by minimizing federal and state income taxes, bringing in nontaxable income, and maximizing passive income. Consider this list of 22 retirement friendly states based on several key financial factors:...

January 18, 2024 - Clearly, all else being equal, these 9 states are the most income-tax-friendly to all taxpayers, retirees included. But, for retirees, in particular, the list of states that offer the chance of 0% (or near-0%) state-income-tax rates may be much longer.

November 4, 2025 - Unfortunately, all U.S. states except nine—Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming—impose such taxes. This means if you're retired in one of these tax-friendly states and take a ...

2 weeks ago - The ten most tax-friendly states for retirement (in no particular order) are Alaska, Florida, Georgia, Kentucky, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, and Wyoming.

December 5, 2011 - 15 states do not tax pension income at all: Alabama, Alaska, Florida, Hawaii, Illinois, Iowa, Mississippi, Nevada, New Hampshire, Pennsylvania, South Dakota, Tennessee, Texas, Washington, and Wyoming.

4 days ago - The solution for a growing number of retirees is to pull up stakes. Last year, more than 338,000 Americans moved in retirement, a 44% increase from the year before, according to Hire A Helper, an online marketplace for moving services. Tax-friendly Florida was the top destination.

However, eight states — Arizona, Arkansas, Hawaii, Montana, New Mexico, North Dakota, South Carolina, and Wisconsin — tax capital gains at lower rates than ordinary income.3 When looking into the best states to retire for tax purposes, it is important to consider capital gains taxes if ...

October 22, 2024 - Taxes in Retirement: How All 50 States Tax Retirees: Provides an overview of how income from employment, investments, a pension, retirement distributions and Social Security are taxed in every state. 10 Most Tax-Friendly States for Retirees: Knowing which are the most tax-friendly states for retirees may help you make your decision.

September 16, 2025 - Alaska doesn’t have a statewide sales tax, which is a plus. But sales taxes easily make it on the cons list when considering local taxes, which can climb to 7.85%. Localities can also levy sales tax on your groceries. So, you may see a hike in your grocery bills if you retire in Alaska. ... Pennsylvania makes the list of tax-friendly places for retirees because it doesn’t tax retirement benefits.

2 weeks ago - South Carolina offers targeted tax breaks for older residents. The state allows generous deductions on retirement income, including pension income and other retirement benefits. Social Security benefits are not taxed, and Property tax rates are low compared to most states. ... South Carolina’s average effective property tax is around 0.5 percent, among the lowest in the country. New Mexico has become more retiree-friendly in recent years.

October 30, 2025 - Within these categories were 46 secondary metrics, such as share of population age 65 and older, quality of public hospitals and general tax friendliness. Florida has sun and sand, yes. But it also has the third highest percentage of older residents and plenty for them to do. And then there’s what it doesn’t have: state income, inheritance or estate taxes. “There’s a lot of talk in Florida now about doing away with property taxes, which would make it even more appealing to retirees,” said Chip Lupo, a WalletHub analyst, though he cautioned that high prices are spurring some retirees to look elsewhere.

June 24, 2025 - Discover which states offer the lowest taxes on IRA income and how your location can affect your retirement nest egg.

October 3, 2024 - Take advantage of resources from The Institute of Financial Wellness to help manage financial well-being in retirement. Retirees seeking a tax-friendly state should consider Alaska, Florida, Nevada, South Dakota, Texas, and Wyoming.