You may also consider deducting your state and local taxes from your federal tax return if you pay enough via the SALT 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:

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.

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.

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.

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.

April 18, 2025 - Alaska offers the lowest tax burden for seniors, while New York has the highest. Delaware and Tennessee are also tax-friendly, but Vermont and Minnesota are costly.

November 15, 2025 - Using these two sources, we compiled ... on state retirement income taxes, pension, and social security taxes. Gas and diesel tax: Current gas taxes by state reference a 2022 report from IGEN, an excise tax platform. Property tax: State property tax rates are from the most recent U.S. Census data (2020) and Wallet ...

January 10, 2023 - The rates can differ widely across the country. California, the District of Columbia, Hawaii, Iowa, Minnesota, New Jersey, New York, Oregon, and Vermont impose the highest rates on the top income tax brackets (more than 8%)

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 ...

December 6, 2024 - Some states are notorious for being retirement havens, offering a range of tax benefits and incentives specifically tailored to retirees. From states with no income tax to those with a low cost of living (and thus lower consumption tax), we delve into the top contenders for retirees seeking a tax-friendly haven in retirement.

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.

pension and qualified retirement plan income from taxation. You’ll notice that these states are also on the above list of Social · Security-friendly states.

February 27, 2025 - Mississippi is one of the most tax-friendly states for U.S. retirees. Social Security benefits, U.S. Department of Veterans Affairs payments, pensions, 401(k)s, and IRA distributions are exempt from state income tax in Mississippi. It charges a flat income tax rate of 4.4% on other types of income that exceed $10,000, but this rate is set to decrease to 4% in 2026.

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 - 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.

4 weeks ago - Some states exempt multiple forms of retirement income and eight states have no income tax at all. ... Illinois, Iowa, Mississippi, and Pennsylvania are considered to be the most tax-friendly states for retirees.

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.

January 18, 2024 - Just as it is easy to focus on ... income), as listed below: No state income tax: Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, Wyoming · Only interest and dividend income is taxed: New Hampshire ...

August 19, 2025 - Discover the nine states that don’t tax retirement income and other ways to avoid high taxes when you retire.

July 12, 2023 - Average State and Local Sales Tax Rate: The statewide sales tax is 4%, one of the lowest in the U.S., but the local taxes raise that average to 9.24%, which is the fifth-highest in the country. ... Estate Tax or Inheritance Tax: Neither. Alabama has many cities that might be appealing retirement spots, such as the lake city of Guntersville. With relatively mild weather and a beneficial tax situation, it’s friendly to seniors.