Where to Live Tax-Free: 5 States Without Social Security Taxes

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%

The good news for Delawareans is that there are no municipal or state taxes in the state. On the other hand, your earnings will be subject to a graduated income tax.

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%

Not only is Social Security untaxed in Nevada, but there is no income tax as well. Nevertheless, you will always be responsible for paying taxes on the real estate you own, and the average sales and local tax in Nevada is somewhat high.

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%

It makes sense why so many retired people move to Florida. Income and Social Security benefits are not subject to taxes. Its sales tax rate is quite low when compared to other states, and its property tax is approximately average for the US.

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