8 Most Tax-Friendly States for Retired Taxpayers

tax-friendly states
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1. Tennessee

We start off this list of tax-friendly states with Tennessee, which is the 16th state, located in the upper South of the eastern United States, and borders eight states: Alabama, Arkansas, Georgia, Kentucky, Mississippi, Missouri, North Carolina, and Virginia.

Tennessee expects to appeal to retirees who hinge profoundly on investment income since Tennessee does not charge any income taxes.

Consequently, Social Security retirement reimbursements and income from retirement accounts are not taxed at the state level. Property taxes in Tennessee are quite low too.

Offering new arrivals lots of outdoor recreation and a countryside lifestyle, Tennessee is one of the fastest budding and tax-friendly states in the U.S. with one of the fastest-growing cities – Nashville, the heart of the country-music scene, with the long-running Grand Ole Opry, the Country Music Hall of Fame and Museum.

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8 Responses

  1. I am astounded you have left out NH. Taxes were a primary consideration after I retired from the Army in 1992. We have have NO income tax or state sales tax in our state. Need I say more? In addition we have the lowest state tax on gasoline in New England. The argument that our high property taxes wipe out the other tax advantages does not fly!

  2. Utah would be a much better place to live than Nevada with its dependence upon gambling taxes.

  3. we live in Arkansas and we are at full retirement age. if we still work do we need to have taxes held out of our social security checks

  4. Does anyone have personal experience with retirement in South Carolina? Is it as tax-friendly as it sounds?

  5. Does anyone know if Arizona has an income tax for seniors? I’ve been thinking of moving there to be closer to family, but I would like a first-hand account from someone who retired there!

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