Hey retirees, If you want to avoid tax as a retiree then you can go to these eight US States where you can enjoy your golden years without paying taxes on your Social Security Benefits and retirement income. Your Social Security Benefits and retirement saving will be use further because you do not have to pay taxes. Let’s see which state you like the most.
Table of Contents
Alaska, Tax free Living State
Imagine living in a state with no income tax, no social security tax, and a sales tax rate of just 1.76%! Alaska is the ultimate tax-friendly destination for retirees. However, keep in mind that it’s also one of the most expensive states to live in.
Wyoming, Low Taxes and Wide Open Spaces
Wyoming is another no-tax haven for retirees, with no social security tax, income tax, or sales tax. Plus, property taxes are super low! Just be prepared for a more rural lifestyle.
Delaware, No Sales Tax
Delaware has no sales tax or social security tax, but there is a progressive income tax that might affect your retirement income. Still, it’s worth considering, especially if you’re looking for a more urban vibe.
New Hampshire, Quality of Life and Low Taxes
New Hampshire offers a great quality of life, low taxes, and no social security tax. However, there is a 4% income tax on interest income and dividends – but not social security benefits!
Nevada, No Taxes
Nevada is a retiree’s paradise, with no state social security tax or income tax. Just be prepared for a slightly higher sales tax rate of 8.23%.
Florida, Heaven for Retirees
Florida is a popular destination for retirees and heaven for retirees to, there is no tax no social security tax or income tax. Plus, the effective property tax is just 0.91%! No wonder millions of retirees call Florida home.
North Dakota, Low taxes
North Dakota offers low taxes, a high quality of life, and no state social security tax. The income tax rate for those over 65 is just 1.10% – and that’s only on retirement account income.
South Dakota, A Tax free Dream
Last but not least, South Dakota has no social security tax, no income tax, and a low sales tax rate of 4.35%. Plus, the effective property tax is just 1.28%!
So, which of these eight states will you call home in your retirement? Remember, you’ve already paid your dues – now it’s time to enjoy your golden years tax-free.
FAQs
Which US states do not tax Social Security benefits?
Alaska, Wyoming, Delaware, New Hampshire, Nevada, Florida, North Dakota, and South Dakota do not tax Social Security benefits.
Are there any states with no income tax?
Yes, Alaska, Wyoming, Nevada, Florida, and South Dakota have no state income tax.
Which state has the lowest property tax rate?
Wyoming has an effective property tax rate of 0.56%, making it one of the lowest in the country.
Are there any states with no sales tax?
No, but some states like New Hampshire and Delaware have low or no local sales tax.
Are there any tax breaks for retirees in these states?
Yes, some states offer additional tax breaks or discounts for retirees, such as reduced property tax or exemptions on certain types of income.
Can I still receive federal benefits if I move to one of these states?
Yes, moving to one of these states will not affect your eligibility for federal benefits like Social Security or Medicare.
