9. Oregon

• State sales and average local tax: 0 percent
• State tax on your Social Security: None
• Effective property tax: 0.98 percent
• Income tax rate (65+): 9 percent

Even though Beaver State has the highest income tax rate in our country, it’s still one of the tax friendliest states for most seniors out there. Why? Because Social Security income isn’t taxed, and the state has literally no sales tax.

8. Washington

• State sales and average local tax: 9.23 percent
• State tax on your Social Security: None
• Effective property tax: 0.92 percent
• Income tax rate (65+): 0 percent

For some may sound surprising, but overall, Washington is a tax-friendly place. It has no income tax, and Social Security benefits aren’t taxed either. In addition, the property tax rate is quite low compared to other U.S. states. But the problem is its sales tax.

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