January 10, 2023 - State and local property taxes: High property taxes can strain the limited resources of retirees. Fortunately, many states and some local jurisdictions offer senior citizen homeowners some form of property tax exemption, credit, abatement, tax deferral, refund or other benefits.

Many evaluate whether a state taxes Social Security benefits, how property taxes are structured and how retirement income, including pension payments and withdrawals from retirement accounts, is taxed at the state level. Click on a state to see a full overview and calculate your taxes · 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.

December 6, 2023 - The most tax-friendly state for retirees is Alaska, where there's no income tax and no state sales tax, no estate tax and no inheritance tax. Retirement accounts that are tax-exempt, or accounts where your withdrawals are tax-free because you ...

June 24, 2025 - For example, a married couple filing jointly with $100,000 in taxable retirement income and living in high-tax Hawaii would pay approximately $7,690 less annually than a single filer. Invested at the end of each year for 10 years with a 7% return, that would amount to more than $106,000.2 · Nevertheless, if they have a relatively higher amount of retirement income, both the single and married filers might consider moving to a state where IRA withdrawals are fully exempt, such as Iowa or Pennsylvania, where state taxes are lower in general, and the average cost of living is also moderate.3 The married couple filing jointly might also consider California, where taxes on retirement income are lower than most other states.

December 12, 2025 - Slovenia has about 2.1 million people, and Croatia has about 3.9 million, and living costs in the United States are about 45 to 55 percent higher than in both countries. This mix creates an off-beat retire path that still feels stable and friendly. Also read. Retire in Croatia: a comprehensive guide for US expats · Uruguay has about 3.5 million people and is often seen as an underrated place to settle. Tax rules use a territorial idea and treat many foreign pensions with light pressure while keeping a calm sense of stability.

5 days ago - 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:

April 14, 2025 - These states are Arkansas, Arizona, ... the most tax-friendly states for retirees include Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, and Wyoming....

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.

October 3, 2024 - Retirees seeking a tax-friendly state should consider Alaska, Florida, Nevada, South Dakota, Texas, and Wyoming. All of these states offer various benefits when it comes to taxes, such as no income tax on the state level for some or all types ...

September 20, 2023 - NYS Pension Taxation Requirements By State Will Your NYS Pension be Taxed If You Move to Another State? If you are considering moving to another state, you should be mindful of the fact that states often enact, amend, and repeal their tax laws; please contact their Revenue Agency yourself to verify that the information is…

November 1, 2025 - ... Nine states—Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming—have no state income tax. New Hampshire joined the list in 2025 when it repealed its tax on dividend and interest income.

June 5, 2025 - Pensions: According to reporting from AARP in 2021, Washington, Alaska, Nevada, Wyoming, South Dakota, Iowa, Illinois, Texas, Mississippi, Alabama, Tennessee, Florida, Pennsylvania, and New Hampshire have no tax on pension distributions.

September 15, 2025 - Retirement income is not taxed in Pennsylvania as long as plan requirements are met. Withdrawals from retirement plans such as IRAs prior to reaching the necessary age (59 1/2) may result in taxes. Forty-one states plus the District of Columbia do not tax Social Security income for retirees.

September 16, 2025 - Also, Alaska won’t tax your loved ones once you’re gone, since there are no estate or inheritance taxes in Alaska. ... 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.

August 26, 2025 - 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 25, 2024 - However, property taxes can be high in some areas. Nevada. Like Florida, Nevada does not impose state income taxes, offering retirees significant tax savings. The state also boasts a vibrant entertainment scene and a relatively low cost of living. However, sales taxes here can be higher than in other states. Texas. Texas is another state with no state income tax, making it appealing for retirees seeking tax-friendly destinations.

July 12, 2023 - With relatively mild weather and a beneficial tax situation, it’s friendly to seniors. Even though Alabama does have an income tax, it won’t tax your pension or Social Security benefits. 401(k) and IRA distributions are fair game, and are taxed as regular income. That said, beginning in 2023, the first $6,000 of retirement income received by anyone age 65 or older is exempt. State Income Tax Range: No income tax.

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 ...

Other states do not tax pension income — they include:3 ... The state income tax rate is another important consideration. In Arizona, New Mexico, North Dakota and Ohio, for example, marginal income tax rates are below 5%. Colorado, Illinois, Indiana, Michigan and Pennsylvania, meanwhile, ...

August 6, 2025 - Thanks to its warm climate and significant number of retirement communities, Florida is often cited as a top destination for those looking to enjoy their golden years. Florida ranks 4th in tax competitiveness, according to the Tax Foundation’s 2025 State Competitiveness Index. In addition to not having a state income tax, sales taxes here are lower than in many other southern states.