10 Best Low Tax Places to Retire

Planning to retire – or retired – where will you retire to? When considering downsizing or relocating you will likely consider taxes; on a retirement budget, this is a major consideration unless you select a low-tax state. If you live in these states, you will not be taxed on your Social Security and various other incomes. For those seeking the most advantageous tax benefits, here are ten best low tax places for retirement.

1. Alaska – Although the cold weather in Alaska might make you think twice, the fact that you are exempt from just about every tax is a major plus. The State of Alaska does not tax you on Social Security, there is no state income tax and any other retirement income is also tax exempt.

2. Florida – This state is a heaven for many seniors thanks to its great weather and beautiful beaches. There is another reason why more and more retirees are flocking to Florida. The state does not tax Social Security or pensions although the state sales tax rate is 6%. If considering Florida as your retirement destination, there are a number of active adult communities in Florida including Shea Homes at Ocala Preserve in Ocala and The Atwater at Nocatee in Ponte Vedra.

3. Illinois – Although Social Security and individual retirement accounts along with federally qualified retirement plans are not taxed, Illinois state tax is 6.25% and property taxes are also quite high when compared to other states.

4. Mississippi – In Mississippi, you are exempt from paying taxes on Social Security and other retirement incomes. However, the 7% state sales tax should be considered.

5. Nevada – Although the state sales tax is 6.85%, there is no individual income tax. So, if you are considering Nevada as a low-tax retirement destination, Trilogy® in Summerlin® and Trilogy® Sunstone by Shea Homes in Las Vegas deserve a closer look.

6. Pennsylvania – The Keystone State is extremely friendly to retirees. Pensions and Social Security are not taxed in Pennsylvania; State sales tax is 6%. Homeowners and renters over the age of 65, and widows and widowers over 50 on limited incomes are eligible for rebates of paid property tax or rent. Pennsylvania has 355 active adult communities.

7. South Dakota – The state sales tax in South Dakota is at an extremely low 4.5%. In addition, there is no income tax and Social Security, and pensions are also exempt from taxes.

8. Texas – In Texas, as with Pennsylvania and Nevada, the state sales tax is 6.25%. Apart from this, there is no income tax and no taxes on Social Security and pensions. There are several active adult communities in Texas. If you are retiring to this low-tax state, consider looking into communities like Heritage Ranch in Fairview, Union Park by Del Webb in Little Elm and Frisco Lakes in Frisco.

9. Washington – This is a state with absolutely no taxes on various incomes including Social Security and pensions. Washington is a great attraction and draws plenty of retirees as it is a place with loads of outdoor activities and is also close to the beach and mountains.

10. Wyoming – Similar to South Dakota, Wyoming also does not tax any form of income including Social Security and pensions. In addition, the state sales tax is also extremely low at 4%.

These are the ten low-tax places to consider for retirement. If you need more information on active adult communities in these states, please visit our website ActiveAdultLiving.com®. Our website provides you with an in-depth look into some of the greatest active adult communities in the state. You are bound to find the right fit, no matter what lifestyle you are looking for.