Asked by: Carlotta Aufderhar MD | Last update: April 5, 2025 Score: 4.5/5
(14 votes)
Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming are the top tax-friendly states for retirees. All of them have no personal income taxes. 1 Other taxes, cost of living, and overall quality of life are also important considerations.
What is the best state to retire to avoid taxes?
Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming stand out for their tax-friendly policies and other amenities that retirees may enjoy.
What state is best financially to retire to?
A: The best state to retire in 2024 is sunny Florida, thanks to its relative affordability and high quality of life for seniors. That's followed by Colorado, Virginia, and Delaware. Q: What state has the lowest cost of living for retirees? A: Alabama ranks as the most affordable state to retire in.
What state has the lowest property taxes for retirees?
To help minimize these expenses, it's important to consider property taxes when determining where you want to retire. Based on effective real estate tax rates (per WalletHub), Hawaii, Alabama, Colorado, Nevada, South Carolina, and Louisiana have the lowest property tax rates in the nation.
What 6 states don't tax retirement income?
The nine states that don't tax income
Alaska.
Florida.
Nevada.
New Hampshire.
South Dakota.
Tennessee.
Texas.
Washington.
10 Most Tax Friendly States for Retirees 2024
18 related questions found
What state is best for seniors on Social Security?
9 Best States to Retire
Delaware. Delaware offers a comfortable environment for retirees, boasting a moderate climate that experiences all four seasons without any extremes. ...
Georgia. Georgia is a compelling choice for retirees seeking a diverse and enriching lifestyle. ...
Maryland. ...
New Jersey. ...
Pennsylvania. ...
South Carolina.
What is the most tax-friendly state to live in?
Alaska. #1 in Low Tax Burden. #45 in Best States Overall. ...
Florida. #2 in Low Tax Burden. #9 in Best States Overall. ...
South Dakota. #3 in Low Tax Burden. ...
Wyoming. #4 in Low Tax Burden. ...
Tennessee. #5 in Low Tax Burden. ...
New Hampshire. #6 in Low Tax Burden. ...
Texas. #7 in Low Tax Burden. ...
Oklahoma. #8 in Low Tax Burden.
What states give property tax breaks to seniors?
The following states offer partial exemption on property taxes for seniors and people over 65.
Hawaii. In Hawaii, if you're 65 or older, you could knock $160,000 off your home's assessed value, reducing your property tax liability. ...
Louisiana. ...
Alaska. ...
New York. ...
Washington. ...
Mississippi. ...
Florida. ...
South Dakota.
At what age do you stop paying property taxes in the USA?
As a senior citizen, you probably will end up paying property taxes for as long as you are a homeowner. However, depending on the state you live in and often once you hit your 60s (usually around the ages of 61 to 65), you may be eligible for a property tax exemption.
Where do the happiest retirees live?
Here are the top 10 cities in the U.S. to retire for the highest quality of life, according to WalletHub.
Pearl City, Hawaii.
Honolulu.
Scottsdale, Arizona.
Columbia, Maryland.
Fremont, California.
Glendale, California.
Madison, Wisconsin.
San Jose, California.
What state has the best healthcare for retirees?
The Best States for Senior Healthcare
Montana – Overall Grade: A+ (100) ...
North Dakota – Overall Grade: A+ (98.3) ...
South Dakota – Overall Grade: A (92.9) ...
Minnesota – Overall Grade: A (92.6) ...
5. California – Overall Grade: A (92.3)
What state pays the highest retirement benefits?
These 10 states have the highest monthly Social Security payouts
New Jersey: $1,768.61/month.
Connecticut: $1,757.00.
Delaware: $1,704.26.
New Hampshire: $1,700.75.
Maryland: $1,689.86.
Michigan: $1,682.68.
Washington: $1,672.05.
Minnesota: $1,656.27.
Which states have no property tax?
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.
Where is the safest and most affordable place to retire?
Read on to explore the cities with the most affordable housing that notched highly on the U.S. News 2024 Best Places to Retire ranking.
Lexington, Kentucky.
Oklahoma City.
Omaha, Nebraska.
Montgomery, Alabama.
Davenport, Iowa.
Green Bay, Wisconsin.
Hickory, North Carolina.
Wichita, Kansas.
Which state does not tax Social Security?
All states and the District of Columbia impose these taxes except Alaska, Delaware, Montana, New Hampshire and Oregon. The highest state sales taxes are in California (7.25%), Indiana, Mississippi, Rhode Island and Tennessee (7.0% in each).
What US state has the lowest property tax?
1. Hawaii. Hawaii has the lowest property tax rate in the U.S. at 0.27%. The Aloha state has a home median value of $764,800.
What are the most tax efficient states for retirees?
Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming are the top tax-friendly states for retirees. All of them have no personal income taxes. 1 Other taxes, cost of living, and overall quality of life are also important considerations.
At what age do you stop paying property taxes in FL?
You are 65 years of age, or older, on January 1; You qualify for, and receive, the Florida Homestead Exemption; Your total 'Household Adjusted Gross Income' for everyone who lives on the property cannot exceed statutory limits.
What is the happiest state to retire in?
The results
The top two states to retire in according to our formula are — drumroll please — Alaska and New Hampshire!
Where are retirees moving to in 2024?
It's no secret why Florida continues to be one of the best states to retire in 2024. With a warm and sunny climate, retirees enjoy Florida's beautiful beaches and outdoor activities year-round. From the Gulf Coast to the Atlantic, Florida offers endless opportunities for leisure.
What is the cheapest state to live in when you retire?
According to the Missouri Economic Research and Information Center, the lowest overall costs of living were found in Mississippi, Oklahoma, Kansas, Alabama, and West Virginia: Cheapest states to retire.
What state has the worst tax rate?
In fact, the states with the highest tax in the U.S. in 2021 are:
California (13.3%)
Hawaii (11%)
New Jersey (10.75%)
Oregon (9.9%)
Minnesota (9.85%)
District of Columbia (8.95%)
New York (8.82%)
Vermont (8.75%)
What is the best state to live in financially?
Arkansas. #1 in Cost of Living. #47 in Best States Overall. ...
Mississippi. #2 in Cost of Living. #48 in Best States Overall. ...
Alabama. #3 in Cost of Living. ...
South Dakota. #4 in Cost of Living. ...
Iowa. #5 in Cost of Living. ...
North Dakota. #6 in Cost of Living. ...
Oklahoma. #7 in Cost of Living. ...
West Virginia. #8 in Cost of Living.
What is the best state to retire on a fixed income?
Best state to retire on a fixed income
Alabama homes are affordable and increase in value by about 4.84% percent annually. Delaware is also a good choice for tax reasons. There is no sales tax, no death tax, and very low property taxes.