13. Kentucky
- State sales and average local tax: 6 percent
- State tax on your Social Security: None
- Effective property tax: 0.82 percent
- Income tax rate (65+): 5 percent
Yes, the income tax rate is pretty high in the Tobacco State, but if you and your spouse decide to retire here, you’ll don’t have to worry about Social Security taxation. It doesn’t exist! You should also take into consideration that Louisville is home to one of the best retirement neighborhoods in the country. Great amenities and a low cost of living are among the best things offered by Louisville’s retirement neighborhoods.
12. Arizona
- State sales and average local tax: 8.40 percent
- State tax on your Social Security: None
- Effective property tax: 0.67 percent
- Income tax rate (65+): 3.34 percent
Getting close to retirement? Then choose Arizona, especially if you want to escape not-so-friendly weather. The income tax rate in Arizona is one of the lowest in the country, and Social Security benefits are free from taxation. A recent study found that Tucson is among the best cities to live on just a Social Security check. Sounds nice, right?
