25. Michigan
- State sales and average local tax: 6 percent
- State tax on your Social Security: None
- Effective property tax: 1.44 percent
- Income tax rate (65+): 4.25 percent
If you actually decide to move to Michigan, good for you! All retirees here benefit from a low-income tax rate. Plus, there are literally no taxes on your Social Security benefits, so you’ll be able to allocate that money to something else, like a well-deserved vacation. There’s a downside, though… Michigan’s residents have to pay 6 percent in sales tax.
24. South Carolina
- State sales and average local tax: 7.46 percent
- State tax on your Social Security: None
- Effective property tax: 0.56 percent
- Income tax rate (65+): 7 percent
Palmetto State has a pretty low property tax rate. Relocating here will also free your Social Security benefits from taxes; however, you should also consider the fact that South Carolina’s income tax rate is actually the second-highest on this list.
