8. District of Columbia
The Capital of the World: Washington, DC, the U.S. capital, is a dense city on the Potomac River, adjoining the states of Maryland and Virginia.
It is worth considering spending your golden years in D.C., whether the motive is to be near family and friends or to hear the Atlantic coast calling your name.
Even though the overall cost of living in Washington, D.C., is high, the regular tax load for retirees isn’t.
The District of Columbia releases all Social Security retirement reimbursements from the city income tax and offers a presumption against government pension income.
But, at the same time, it taxes other income from retirement accounts.
Which one of these tax-friendly states is your favorite?