Top tax-friendly states for retirees

Want to retire to a place where state income and sales taxes, plus inheritance and estate taxes, aren't a burden? Consider these 10 states.

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VIDEO ON MSN MONEY

75Comments
Nov 17, 2012 4:36PM
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When normal, middle income, people retire they are usually "cash strapped" and looking for warmer places to retire.

Some of these states have a cost of living that requires a high income, such as Alaska while others are so frigid, like Wyoming (and Alaska) that makes it unattractive for the older retiree. 

Someone at MSN should filter these articles as they are all over the place and not well constructed for the real people who retire on limited funds.
Nov 17, 2012 4:54PM
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Texas was not listed, low cost of living, and no state income tax??

Nov 17, 2012 5:41PM
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Why isn't property tax mentioned???
Nov 17, 2012 5:35PM
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It seems like someone took a hatful of states and picked the first 10 for results of nothing.

Is it me or is the media making up stories to fill up space on the computer???

Nov 17, 2012 5:03PM
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The article is partially incorrect about Louisiana.  They do tax state pensions for persons receiving pensions from another state.  We live in Louisiana and my wife retired from Mississippi as a teacher.  Her "Mississippi Teacher's retirement" is taxed in Louisiana. If she had retired as a teacher from Louisiana, her retirement would not have been taxed.   Also, the article leads one to believe that there is no sales tax on Food and Drugs.  The State of Louisiana doesn't tax them, but local governments can tax them and many do.
Nov 17, 2012 7:42PM
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While some of states mentioned have low income tax and sales taxes, there are other issues that seniors have to look at.  Things like, what real estate is going for in those areas.  Also, will they be able to afford to live in an area that has decent hospitals or medical facilities.  Some states, such as Illinois won't make you pay income tax on social security as long as you earn below a certain dollar amount. but that is pretty much asking you to live at poverty level and have your house paid for in full.  Most seniors don't want to live in cold climates such as Alaska even though you receive a check from the state just for being a permanent resident.  Sure you could live quite comfortably in Biloxi Mississippi, but you run the risk of losing everything you own in a hurricane. A number of seniors are becomming ex-pats and living outside the Unite States where their dollar can stretch a little further too.  There is more to look at than just income and sales tax though it does factor in.
Nov 17, 2012 9:09PM
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Too bad...another example of INCOMPLETE research and reporting. You included PA in your article, and while what you did report was correct, you failed to provide a complete picture. PA has State, County, and Local taxes on real estate in most of the state. So depending on the area in which you choose to retire, you could make an annual School Tax payment well in excess of your mortgage payment to say nothing of the "real-estate" portion of the taxes. You also don't include the "restaurant" tax of 6% - so not all your food is tax free. While the State Sales Tax of 6% is correct, Allegheny County is 7% and Philadelphia County is 8%. 

 

DO MORE RESEARCH BEFORE YOU REPORT! 

Nov 17, 2012 6:47PM
Nov 17, 2012 5:54PM
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Yes the state has low taxes, but the school taxes will eat up your retirement income. The state has about 500 school districts and they answer to no one. The state regulation of their spending habits make a strainer look like a solid bowl. Many people have lost their homes due to nonpayment to these little fiefdoms. Our tax has gone up about 120% in 12 years. The state has a homestead rebate for money from gambling and that does not even cover the yearly increase in the school tax.
Nov 17, 2012 7:55PM
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If you retire from Cali don't bother leaving. They'll tax your retirement no matter where you move...yeah, they're that broke...
Nov 17, 2012 8:27PM
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Arkansas has many retirees.. because our cost of living is wonderful  for those people. plus if or when they do finally come here.. they love Arkansas, many buy property and if not move back soon will when they finally do retire.

 Our Governor Beebe , has just  presented his New Legislation list for the 2013  Legislative Session which begins soon, one of his prime points is to remove more sales tax from food, he hopes to totally eleminate any tax on food., our state will make up the diffrence on other things, if it's needed.

 Our STATE is mandated to stay within our STATE Budget. ( it cannot go over the monies we have in our state budget )

Come one and all to our beautiful state, once you see it YOU too will love it here.

Nov 17, 2012 6:39PM
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They forgot New Hampshire does not have a sales tax, state income tax, inheritance tax or estate tax.
It's the Live Free or Die State.  We do have property taxes, though you wouldn't know it given the state of education in NH.  NH does NOT support education.  Florida has better schools!

Nov 17, 2012 8:23PM
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Would you please get someone who knows what they are writing about!!
Nov 17, 2012 5:12PM
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How is it possible for a company to offer full pension to someone who had to retire early (after 22 years) because of cancer, then turn around and take half of that pension back all because that person applied for and received Social Security Disability Income?  That SSDI and the pension is all that person is receiving and it doesn't even cover his food and housing bill.  Is what that company doing legal?  I don't think so.  By the way, the company is Chrysler (before Fiat took over).
Nov 17, 2012 8:43PM
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Another IGNORANT MSN article. No Texas and no Florida listed? Seriously?
Nov 17, 2012 9:36PM
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retire onto a houseboat and go up rivers in the summer time and down river in the winter - have a great time!!
Nov 17, 2012 8:52PM
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to Hazelstars, don't knock Alaska unless you've lived here.  Our winters are NOT as cold as S.D. N.D. WI, MI, etc., know your facts.  The only difference is the winters are longer.  We also, usually do not have near as much snow as the states listed above.  We do have a lot of tax breaks, and I assure you that if Obama tried giving AK away, he'd have a major fight on his hands.  Houses are not higher, and some states real estate is much higher, WA for example.  I know, I've lived there too.  After 65 you do not pay property tax, nor vehicle tags, there is a program for people that need heating assistance, etc.  I'm 71 and been here 30+ years, live by myself and manage just FINE!!!!
thank you very much

Nov 17, 2012 6:01PM
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Just what I was thinking... paddle faster, I hear banjos!
Nov 17, 2012 9:22PM
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90% of those places are too hot and humid.  That fact would trump all the other advantages.

I thought San Diego was a good place to retire because of the weather.
Nov 17, 2012 4:15PM
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