3. Delaware
- State sales and average local tax: 0 percent
- State tax on your Social Security: None
- Effective property tax: 0.58 percent
- Income tax rate (65+): 5.55 percent
If you want to retire taxwise, move to Delaware! There’s virtually no sales tax, and Social Security benefits aren’t taxed either. Besides, Delaware’s property tax rate is one of the lowest on the list.
2. Wyoming
- State sales and average local tax: 5.33 percent
- State tax on your Social Security: None
- Effective property tax: 0.55 percent
- Income tax rate (65+): 0 percent
Avoiding a big tax bite doesn’t have to be difficult, especially if you’re a Wyoming resident. Social Security benefits are free from taxation, and the state doesn’t have an income tax. When it comes to its sales and property tax rates, Wyoming scores great, too. All in all, Wyoming is a great option.
1. Alaska
- State sales and average local tax: 1.76 percent
- State tax on your Social Security: None
- Effective property tax: 1.02 percent
- Income tax rate (65+): 0 percent
The last entry on our list is Alaska. Most retirees think that Alaska is the most tax-friendly U.S. state. It has no income tax or tax on Social Security benefits. On top of that, Last Frontier’s sales tax rate is actually the fourth-lowest on the list. However, in general, the cost of living here is a little bit higher than in most U.S. states.
Psst! Living in one of these 16 states? This Is Why You’re Struggling To Pay The Bills
*Which state will be your final destination? Please, leave a comment down below with your favorite retirement place!
