What is the best state to retire to avoid taxes?

Asked by: Aryanna Jerde DDS  |  Last update: April 5, 2024
Score: 4.8/5 (26 votes)

The following nine states have no income tax, including retirement income:
  • Alaska.
  • Florida.
  • Nevada.
  • New Hampshire (Note: It has a dividends and interest tax which will phase out in 2024)
  • South Dakota.
  • Tennessee.
  • Texas.
  • Washington.

What state has the lowest property taxes for retirees?

Alabama, Alaska, Florida, Georgia, Mississippi, and South Dakota stand out as states with no property taxes for seniors aged 65 and above. Alabama exempts seniors entirely, while Alaska offers a $150,000 exemption. Florida provides benefits for retirees, including property tax exemptions.

What is the best tax-friendly state for retirees?

Surprising Data Reveals The Top 25 Tax-Friendly States To Retire
  1. Alaska. State sales and average local tax: 1.76%
  2. Wyoming. State sales and average local tax: 5.36% ...
  3. Delaware. State sales and average local tax: 0% ...
  4. New Hampshire. State sales and average local tax: 0% ...
  5. Nevada. ...
  6. Florida. ...
  7. South Dakota. ...
  8. North Dakota. ...

What is the #1 retirement state?

Iowa ranks as the number one state to retire to.

Since health care is a top priority for retirees looking to move, Iowa may be a good choice as it ranks well for medical care and access. Iowa also holds lower crime rates for senior citizens.

What is the most tax-friendly state to live in?

MoneyGeek's analysis found that Wyoming is the most tax-friendly state in America, followed by Nevada, Tennessee, Florida and Alaska. States that received a grade of A all share something in common: no state income tax.

5 State RETIREMENT Tax Considerations You're Likely Not Considering... (State Taxes Explained)

17 related questions found

What is the best state to live in financially in 2023?

Alabama ranked the best state to live in for affordability, while California ranked the worst for this metric. New York had the best ranking for quality of life, while Alaska had the worst ranking for this same category.

What is the best state to retire on a fixed income in 2023?

Key takeaways. The best state to retire is Iowa because of its lower cost of living, affordable but high-quality healthcare and low crime. Delaware, West Virginia, Missouri and Mississippi round out the top five.

Why are retirees leaving Florida?

A recent analysis from retirement experts for GOBankingRates found some people are rethinking the Sunshine State as the go-to retirement destination. The cost of housing in Florida has skyrocketed, with a median home value of nearly $393,000, according to Zillow.

What's the best state to live in if your on Social Security?

1. Iowa. Iowa tops the list for best states to live on just a Social Security check thanks to a number of factors. Overall, the monthly cost of living-rent, groceries, healthcare, utilities, transportation, and any miscellaneous expenses-comes to just under $3,000.

What are the 10 most expensive states to retire in?

According to the Composite Cost of Living Index, the 10 most expensive states to live in (and retire to) are: Hawaii, Massachusetts, California, New York, Alaska, Washington, New Hampshire, Vermont, Maryland, and Oregon.

What 12 states don t tax retirement income?

States with no income tax
  • Alaska.
  • Florida.
  • Nevada.
  • South Dakota.
  • Tennessee.
  • Texas.
  • Washington.
  • Wyoming.

What is the cheapest state tax wise to live in?

Alaska is renowned for having the lowest tax burden among all states. With no state income tax or state sales tax, Alaskans enjoy the advantage of keeping more of their earnings.

At what age do you no longer have to pay taxes?

Taxes aren't determined by age, so you will never age out of paying taxes. Basically, if you're 65 or older, you have to file a tax return in 2022 if your gross income is $14,700 or higher.

Which state has no property tax in USA?

Sadly for investors, the answer is no, there are no states without property tax. This is because property tax is a useful way for local governments to fund public services such as schools, fire and police departments, infrastructure and libraries.

What are the top 5 states to retire to?

The top five best states to retire to in 2024 are New Hampshire (1), Utah (2), Minnesota (3), Connecticut (4), and Colorado (5). The bottom five worst states to retire to in 2024 are Louisiana (50), Kansas (49), West Virginia (48), Arkansas (47), and Mississippi (46).

Where can I retire on $2000 a month in the United States?

Here are the best US cities where you can retire on $2,000 a month:
  • Brownsville, Texas. Insider Monkey Score: 5. ...
  • North Royalton, Ohio. Insider Monkey Score: 6. ...
  • Augusta, Georgia. Insider Monkey Score: 8. ...
  • Abilene, Texas. Insider Monkey Score: 8. ...
  • Fargo, North Dakota. ...
  • Greeley, Colorado. ...
  • Fort Wayne, Indiana. ...
  • Bellevue, Nebraska.

Does Social Security pay the same in every state?

As a federal program, the SSA does not pay much mind to which state you live in, meaning most disability benefits are the same no matter where you are located. Social Security Disability Insurance (SSDI) is one form of disability benefits that will not be affected by where you live.

What state has the best senior benefits?

States ranking for best health and healthcare for senior adults in the U.S. in 2023. In 2023, across all states in the United States, Utah was ranked as the healthiest state for older adults aged 65 years and above, followed by New Hampshire and Colorado.

Can I retire in Florida on $3000 a month?

Q: Can I retire in Florida on $3,000 a month? A: According to a GOBakingRates study, there are several cities in Florida where you can live on $3,000 — or even less — each month, including Pensacola and Panama City.

Where are people retiring instead of Florida?

If you're nearing retirement, you may want to choose a less traditional region to reside in post-work. Towns like Sequim, Washington; Linden, Michigan and Thermopolis, Wyoming offer perks like more affordable housing, favorable tax treatment and proximity to major metros.

Where are retirees moving 2023?

These five states drew the largest percentage of interstate moves by retirees in 2023:
  • Florida (11.1% of all inbound moves)
  • South Carolina (10%)
  • New Jersey (6%)
  • Texas (5.8%)
  • Washington (5. 3%)

Where is the happiest place to retire?

Whether it reflects the warmer weather, quality healthcare or a low tax burden, Florida ranks number one as a retirement paradise on WalletHub's 2024 survey. Florida, Colorado and Virginia top the list of the best places to retire in the U.S. in 2024, according to a new survey from WalletHub.

Where is the cheapest warm place to retire?

Methodology
  • Corozal, Belize. ...
  • Panama City, Panama. ...
  • San Miguel de Allende, Mexico. ...
  • Santiago, Dominican Republic. ...
  • Lake Chapala, Mexico. ...
  • La Serena, Chile. Average Monthly Cost of Living: $1,640. ...
  • Cuenca, Ecuador. Average Monthly Cost of Living: $1,500. ...
  • Da Nang, Vietnam. Average Monthly Cost of Living: $1,500.

Where is the best place for seniors to live?

The 10 Best Places to Retire in the U.S. in 2024:
  • Lancaster, Pennsylvania.
  • Scranton, Pennsylvania.
  • Allentown, Pennsylvania.
  • New York City.
  • York, Pennsylvania.
  • Daytona Beach, Florida.
  • Youngstown, Ohio.
  • Pittsburgh.

What state is most moved to in 2023?

The most moved-to states in 2023 were South Carolina, North Carolina, Tennessee, Arizona and Florida. Among the top inbound states in the Moving Migration Report, some cities saw a higher influx of new residents than others. The top cities in 2023 include: Tucson, Arizona.