11. Indiana

• State sales and average local tax: 7 percent
• State tax on your Social Security: None
• Effective property tax: 0.87 percent
• Income tax rate (65+): 3.23 percent

Indiana is another good retirement option. Its income tax rate is among the twenty lowest in the country, and there’s virtually no tax on Social Security benefits. The only downside is that Indiana’s sales tax is one of the highest in the U.S. This is a deal-breaker for most seniors.

10. Hawaii

• State sales and average local tax: 4.44 percent
• State tax on your Social Security: None
• Effective property tax: 0.30 percent
• Income tax rate (65+): 8.25 percent

Well… living in heaven comes at a price. Although Social Security benefits are free from taxation, the cost of living in Hawaii is pretty high. Yet, it’s a good retirement option because Aloha State has one of the lowest property tax rates in the country. Plus, who doesn’t want to move to Hawaii?

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