Retired in America

Your Guide to a Confident Retirement

  • Home
  • Personal finance
  • Retirement Life
  • Saving & Spending

10 Most Tax-Friendly States For Retired Taxpayers

May 31, 2021 · Retirement Life

2nd Best: Hawaii

The downside: Hawaii residents, especially those in higher income brackets, paid more than double the national average in state taxes last year. For example, if your income exceeds $200,000 (or $400,000 for joint filers) it’s subject to a hefty 11% income tax.

Estate taxes start at 10% for properties with a value of $5.49 million and more. If you’re part of middle-income earners, Hawaii might not be suitable for you because of its exorbitant housing prices.

Why it’s still a good place to move: For starters, there’s nothing like spending your retirement years in a tropical paradise like Hawaii. Secondly, Hawaii boasts very low property taxes, with a median of just $280 per $100,000 in assessed home value.

What’s more, the sales tax in Hawaii does not exceed 4%, with the combined state and local average tax rate going as high as 4.5% in certain municipalities. Although groceries are taxed, Social Security benefits and employer contributions to pensions and 401(k) plans are exempt from taxes.

Pages: 1 2 3 4 5 6 7 8 9 10 11

Share this article

Facebook Twitter Pinterest LinkedIn Email

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Search

Latest Posts

  • A senior man sits at a wooden table reviewing a Social Security Administration statement with a pen and notebook. Why So Few Retirees Qualify for Social Security’s Biggest Possible Monthly Check
  • A woman reviews a retirement planning calendar and binder at a sunlit wooden table near a window. Key Retirement Milestone Ages Most People Miss
  • Mature couple sitting at a wooden kitchen table reviewing a calendar and open notebook with a cup of coffee. The Average Social Security Check by Age
  • 8 Medicare Billing Errors Worth Appealing 8 Medicare Billing Errors Worth Appealing
  • An older couple reviews Medicare paperwork at their kitchen table in warm morning light. 9 Medicare Rules Around Second Opinions
  • An older woman looks over healthcare paperwork at her kitchen table under warm light, looking concerned. 7 Signs Your Medicare Advantage Plan Restricts Specialist Access
  • An older woman practices balance therapy with a physical therapist in a bright, sunlit rehabilitation room. 8 Medicare Rules for Skilled Nursing Facility Stays
  • An older couple sitting at a wooden kitchen table reviewing Medicare booklets together in warm morning light. 9 Signs You Should Compare Medicare Plans This Fall
  • An older couple in their home kitchen reviewing Medicare documents next to a CPAP medical device on the table. 7 Medicare Coverage Rules for Durable Medical Equipment
  • An older man at a wooden kitchen table reviews a long pharmacy receipt next to a prescription bottle in warm morning light. 8 Signs Your Medicare Plan's Drug Formulary Has Changed

Newsletter

Get retirement planning tips, savings strategies, and lifestyle insights delivered to your inbox.

Related Articles

A candid photo of a grandmother and grandson laughing while playing at a kitchen island in a busy, warm family home.

The Rise of Multi-Generational Living: Why Retirees Are Moving in with Family

Discover why more retirees are choosing multi-generational living to share financial burdens, combat isolation, and…

Read More →

Are Your Retirement Savings Safe? 6 Surprises That May Derail Your Retirement Plans!

Millennials who won’t move out A survey by Country Financial Security Index found that 1…

Read More →

11 Countries to Retire Where $150K Is More Than Enough

Peru  Peru is the perfect choice for adventure lovers. For retirees, the cost of living…

Read More →

14 Retirement Cities With Awful Weather

 Grand Forks, North Dakota – Grand Forks in North Dakota has its fair share of…

Read More →

5 Medicare Changes We Will Face in 2022

Returning to normal As evidenced by the MA and Part D final rule for 2022,…

Read More →

6 States That Are Perfect for Healthy and Active Seniors

1. Hawaii Finally, the best state for retirees in terms of health care in Hawaii.…

Read More →

10 Hidden Drawbacks of 401(k)s That Will Leave You Speechless

Tax Laws May Change One of the advantages of a 401(k) plan is that it…

Read More →
A man in his 60s reviews retirement savings charts on a tablet at his kitchen table in the morning light.

Is Your 401(k) Keeping Pace? See the Average Balance by Age in 2026

Discover the average 401(k) balance by age in 2026 and learn actionable strategies to benchmark…

Read More →

Top 11 Medical Alerts Systems

Medical alert systems have become a popular choice for many older Americans, especially those who…

Read More →
Retired in America

Your Guide to a Confident Retirement

Inedit Agency S.R.L.
Bucharest, Romania

contact@retiredinamerica.com

Trust & Legal

About Us

Editorial Policy

Advertiser Disclosure

Frequently Asked Questions

Contact Us

Disclaimer

Terms and Conditions

Privacy Policy

Subscribe

Unsubscribe

Categories

  • Personal finance
  • Retirement Life
  • Saving & Spending

© 2026 Retired in America. All rights reserved.