Top 10 Tax-Friendly Retirement States

What's Hot

23 Upgrades Under $50 to Make Your House Look AwesomeAround The House

Trump Worth $10 Billion Less Than If He’d Simply Invested in Index FundsBusiness

Do This or Your iPhone Bill May SkyrocketSave

11 Places in the World Where You Can Afford to Retire in StyleMore

19 Moves That Will Help You Retire Early and in StyleFamily

What You Need to Know for 2017 Obamacare EnrollmentFamily

8 Things Rich People Buy That Make Them Look DumbAround The House

50 Ways to Make a Fast $50 (or Lots More)Grow

32 of the Highest-Paid American SpeakersMake

The 35 Two-Year Colleges That Produce the Highest EarnersCollege

5 DIY Ways to Make Your Car Smell GreatCars

Amazon Prime No Longer Pledges Free 2-Day Shipping on All ItemsMore

More Caffeine Means Less Dementia for WomenFamily

7 Household Hacks That Save You CashAround The House

5 Reasons a Roth IRA Should Be Part of Your Retirement PlanGrow

30 Awesome Things to Do in RetirementCollege

Beware These 10 Retail Sales Tricks That Get You to Spend MoreMore

9 Tips to Ensure You’ll Have Enough to RetireFamily

Where will your retirement dollars be worth the most? Check out the list.

Kiplinger‘s investigated the tax situations retirees will face across the country. Here’s a couple of the states where they make out well…

10. Pennsylvania. Pennsylvania is one of only two states (Mississippi is the other) that exempts all retirement income — including public and private pensions, IRAs and 401(k) distributions — from its state income tax. Non-retirement income is taxed at a low, flat rate of 3.07%. Food, clothing and medicine are exempt from state sales taxes. But property taxes can be high in the Keystone State, especially near larger cities. One caveat for the wealthy: Your heirs won’t get off so easily. Pennsylvania is one of a handful of states to have an inheritance tax, paid by the heirs.

8. Louisiana. For retirees, every day is like Mardi Gras in Louisiana. Social Security and military, civil service, and state and local government pensions are exempt from state income taxes, plus up to $6,000 per person of pension and annuity income. Personal income tax rates max out at 6% on taxable income over $50,000. Property taxes are among the lowest in the nation, according to the Tax Foundation. Assessments are based on 10% of the fair market value. Homeowners receive a homestead exemption of $7,500 of their home’s assessed value, and homeowners 65 and older may qualify for a freeze on the value of their home. But sales taxes can be steep. The statewide sales tax is 4%, and local parishes and jurisdictions within those parishes can add their own sales taxes. Louisiana’s average combined sales tax rate of 8.86% ranks third-highest in the nation, according to the Tax Foundation. But food and drugs are exempt from sales taxes throughout the state.

Check the link for the rest. No. 1? Alaska, if you can stand it.

Stacy Johnson

It's not the usual blah, blah, blah

I know... every site you visit wants you to subscribe to their newsletter. But our news and advice is actually worth reading! For 25 years, I've been making people richer without making their eyes glaze over. You'll be glad you did. I guarantee it!


Read Next: 9 Tips to Ensure You’ll Have Enough to Retire

Check Out Our Hottest Deals!

We're always adding new deals and coupons that'll save you big bucks. See the deals to the right and hundreds more in our Deals section.

Click here to explore 1,668 more deals!