A pleasant break from paying Social Security taxes is provided by certain states! We’ll examine these states’ tax systems, taking into account income, other applicable taxes, and Social Security.
In order to assist you in determining whether tax-free living is in line with your ideal retirement experience, we will also examine the lifestyle aspects of each state.
Thus, this article is for you if you want to keep more of your hard-earned money and optimize your retirement income!
Take a look at the options for living tax-free in these remarkable states when you unpack your baggage!
Wyoming
| Category | Rate/Value |
| State Sales and Average Local Tax | 5.36% |
| State Tax on Social Security | None |
| Effective Property Tax | 0.56% |
| Income Tax Rate (65+) | 0% |
In addition, Wyoming has lower property taxes than Alaska and neither an income tax nor a Social Security levy. Alaska does not have a sales tax, yet it does. It is 4%.
Alaska
| Category | Rate |
| State sales and average local tax | 1.76% |
| State tax on Social Security | None |
| Effective property tax | 1.04% |
| Income tax rate (65+) | 0% |
Due to the absence of both a state income tax and a Social Security levy, Alaska is the most tax-friendly state for seniors. Still, when it comes to expense of living, it ranks highly. Your housing costs will be covered by the tax savings you would get.
Delaware
| Tax Category | Rate |
| State Sales and Average Local Tax | 0.00% |
| State Tax on Social Security | None |
| Effective Property Tax | 0.61% |
| Income Tax Rate (65+) | Graduated rate from 2.2% to 6.6% |
Nevada
| Category | Rate/Value |
| State sales and average local tax | 8.23% |
| State tax on Social Security | None |
| Effective property tax | 0.59% |
| Income tax rate (65+) | 0% |
Florida
| Tax Category | Rate |
| State sales and average local tax | 7.00% |
| State tax on Social Security | None |
| Effective property tax | 0.91% |
| Income tax rate (65+) | 0% |
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