Here are 10 states that impose some of the lowest taxes on retirees in the United States, according to Kiplinger’s Personal Finance analysis of state tax rules. In each of these states, social security benefits are exempted from taxation (and some impose no state income tax at all). Even military and private pensions may be exempted in these states. A few offer exclusions on part of distributed income from IRAs or 401Ks.Review all of your sources of income before you decide which state may be the best fit for your retirement home.
The most tax-friendly states are:
1. Alaska 6. Alabama
2. Nevada 7. South Carolina
3. Wyoming 8. Louisiana
4. Mississippi 9. Delaware
5. Georgia 10. Pennsylvania
The least tax-friendly states are Connecticut, Vermont, Rhode Island, Montana, Minnesota, Nebraska, Oregon, California, New Jersey and New York.
