Most and least tax-friendly states for retirees
RETIREMENT RANKED
Tax season takes a bigger bite out of retirement in some states than in others, but that doesn't mean you should flee to a low-tax state. Recent tax reform capped the amount of state or local income tax, property tax, or sales tax that taxpayers can deduct at $10,000 from 2018 through 2025. Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming don't have state income tax, but retirees also need to consider taxes on sales, Social Security, retirement distributions, property, estates, and inheritance. That effective tax rate is what makes some states retirement havens and others a drain on retiree resources. With the help of data compiled by the folks at Kiplinger, GoBankingRates, and WalletHub, we took a look at the tax burden for retirees in each state and found the 10 best and worst for retirement living.
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