7. Tennessee

• State sales and average local tax: 9.55 percent
• State tax on your Social Security: None
• Effective property tax: 0.73 percent
• Income tax rate (65+): 0 percent

Just like all the states listed in this article, Tennessee doesn’t tax your Social Security benefits either. However, if you want to spend your golden years here, you have to pay attention to the state’s sale tax. Tennessee’s sale tax is actually the second-highest in the country.

6. South Dakota

• State sales and average local tax: 6.40 percent
• State tax on your Social Security: None
• Effective property tax: 1.22 percent
• Income tax rate (65+): 0 percent

South Dakota is one of the few U.S. states that have no income tax. Social Security benefits are also free from taxation, meaning you’ll most likely enjoy all of your retirement income. However, South Dakota’s property tax rate is high compared to most U.S. states.