Ready to Retire? Here Are the Top 25 Most Tax-Friendly States For You

5. Florida

• State sales and average local tax: 7.08 percent
• State tax on your Social Security: None
• Effective property tax: 0.94 percent
• Income tax rate (65+): 0 percent

Unsurprisingly, the Sunshine State is one of the most tax-friendly states for you and your spouse. It has no taxes on your Social Security benefits or income. Another good aspect of retiring here is that Florida’s property and sales tax rates are reasonable.

4. Nevada

• State sales and average local tax: 8.23 percent
• State tax on your Social Security: None
• Effective property tax: 0.66 percent
• Income tax rate (65+): 0 percent

Nevada doesn’t impose a state income tax. Plus, the state doesn’t tax your Social Security benefits, making it a tax paradise for most seniors. The only problem here is that its sales tax is pretty high compared to other U.S. states.

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