Ten Tax-Friendly States for Retirees

If you’re looking for the best place to retire, you may want to consider one of these most tax-friendly states for retirees.

US map made of money
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When choosing which state to retire, taxes may have crossed your mind. Knowing which are the most tax-friendly states for retirees may help you decide. Just keep in mind that no state has zero taxes. So, where some taxes are low, other types may be high. 

Considering the pros and cons of state taxes in retirement will provide you with the best overall tax picture. Additionally, how the IRS taxes various types of retirement income can affect your tax burden.

(Note: This ranking only considers state tax burdens. You may want to consider other factors, like cost of living, political climate, and crime rates, before deciding where to relocate.)

Most tax-friendly states for retirees

The ranking for the most tax-friendly states for retirees is based on two major factors. 

Only states that don't tax retirement benefits were considered. Of those 13 states, the 10 with the lowest median property taxes paid were chosen. 

Property tax bill amounts are based on the most recent 5-year estimate available) from the US Census Bureau.

Katelyn Washington
Former Tax Writer

Katelyn has more than 6 years of experience working in tax and finance. While she specialized in tax content while working at Kiplinger from 2023 to 2024, Katelyn has also written for digital publications on topics including insurance, retirement, and financial planning and had financial advice commissioned by national print publications. She believes knowledge is the key to success and enjoys providing content that educates and informs.

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