Best States to Retire in Without Social Security Taxes
Want to not pay as much tax? Well, you’re hardly alone there. Some people move all the way across the country in an attempt to pay less tax, in fact. They often find themselves at one of these tax-friendly states, where Social Security is not taxed. This list will tell you where the best places out of them are.
Alaska
Alaska is absolutely a tax retiree’s dream: there’s no state income tax or state-level taxation on Social Security, pensions, IRAs, or 401(k) withdrawals. Bear in mind that it still has a high cost of living, though, so it still helps to be rich before you move there.
Wyoming
Wyoming is about as tax-retiree-friendly as it gets - no state tax on Social Security, pensions, 401(k)s, IRAs, or any other retirement income. There's also no estate or inheritance tax, and property taxes are super low. It does have a 4% sales tax, though.
Delaware
Delaware is a laid-back state that’s great for the bank account: no taxes on Social Security, no sales tax at all, and property tax breaks for seniors. On top of that, it doesn’t hit you with estate or inheritance tax. There is however a graduated income tax, so bear that in mind.
New Hampshire
New Hampshire is a pretty good place to consider if you’re worried about tax. There’s no state income tax, and on top of that, there’s no sales tax, estate tax, or inheritance tax. The only catches? Property taxes are quite high - around a 1.6% effective rate – and there’s a flat 4% tax on income from interest and dividends.
Nevada
Nevada, the gambling capital of the world, is pretty good with taxes. There’s no state income tax, which means Social Security income, pensions, IRAs, and 401(k)s all go untaxed at the state level. There’s no estate or inheritance tax and property taxes are minimal.
Florida
Florida isn’t just about theme parks – it’s an absolute paradise for retirees. There’s no state income tax at all, which means Social Security, pensions, IRAs - you name it - are tax‑free. There’s also no estate or inheritance tax. Property tax is average, and the days are long and sunny!
South Dakota
South Dakota has no state income tax, no estate tax, and no inheritance tax. Property tax is however higher than average, but the cheap cost of living in the state weighs that out in the eyes of many. It’s definitely a state to consider if you’re moving for tax reasons.
North Dakota
What about South Dakota’s twin, North Dakota? Well, since 2021, it no longer taxes Social Security benefits, and there’s no estate tax or inheritance tax either. It does tax retirement accounts though, like IRAs or 401(k)s, depending on your income.
