Categories: Featured Post

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

Photo by Jacob Lund from Shutterstock

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.

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