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

Best: Delaware

The downside: The major bummer in Delaware? The income taxes start at 2.2% on taxable income from $2,001 to $5,000 and go as high as 6.6% on taxable income surpassing $60,000.

Why it’s still a good place to move: The First State is one of just four states in the nations with no sales tax but is also has the lowest property tax rates of any state. There’s also no estate or inheritance tax. Some might say it’s a tax haven.

Property tax averages somewhere at $562 per $100,000 in assessed home value and eligible seniors can benefit from school property tax credits. More than that, Social Security benefits are not taxed, and retirees aged 60 and over can get an exemption of up to$12,500 in retirement income, including dividends, interest, pensions and IRA and 401(k) distributions.

Congratulations, Delaware! You’re the most tax-friendly state for retirees!

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Your email address will not be published.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

  • Illustration of an open health roadmap planner on a desk overlooking a winding coastal path with a walking couple. 9 Medical Tests Seniors Can Ask About Covered by Medicare
  • A smiling older woman in a sunlit kitchen reads a health benefits booklet next to delivered medical and wellness supplies. 12 Medicare Advantage Perks Retirees Forget to Use
  • Smiling older couple shopping for apples at a busy outdoor autumn farmers market in a historic town square. 11 Perks of Retiring in a Small Town Instead of a Big City
  • An older man wearing an apron carves a floral design into a linoleum block on a wooden workshop table. 9 Free Classes and Courses Retirees Can Access Locally
  • Senior woman repairing an intricate antique wooden clock with fine tools in a sunlit workshop. 7 Social Security Myths That Refuse to Die
  • A woman sits at a kitchen counter inserting a hardware security key into her laptop for two-factor authentication. 7 Signs Your Social Security Account Needs a Security Check Right Now
  • An older woman on her front porch reads a county property tax statement while holding a pen. 10 Property Tax Relief Programs Seniors Should Apply For
  • Mature man wearing safety glasses and an apron tests a solar power inverter circuit board in an electronics workshop. 8 Paid Training Programs for Low-Income Workers Over 55
  • Man at a wooden table holding a Health Savings debit card beside a tablet displaying an HSA balance and benefits documents. The One Account Where the IRS Lets You Avoid Taxes Three Ways
  • Watercolor illustration of a scenic riverside town commons with a church, library, shops, and gathered residents at sunset. 10 Affordable Retirement Towns With Strong Faith and Community Groups

Newsletter

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

Related Articles

An older couple reviews Medicare paperwork at their kitchen table in warm morning light.

9 Medicare Rules Around Second Opinions

Discover how Medicare covers second and third medical opinions, Part B costs, specialist network rules,…

Read More →
A stylized gouache illustration of a western landscape featuring mountains, red rock mesas, and pine forests under a warm afternoon sun.

10 Western Retirement Spots with Incredible Lifestyle Appeal

Discover ten western retirement destinations that offer breathtaking scenery, excellent healthcare, active lifestyle communities, and…

Read More →

7 Reasons Renting Fits Perfectly With Your Retirement

7. Get help with daily tasks When it’s time to pick a rental property, you…

Read More →

6 Warning Signs Your Retirement Money Won’t Last

Nobody wants to be broke in retirement. Unless you prepare very well, you might discover…

Read More →

10 Unexpected Threats to Your Retirement in 2022

Long-term care expenses – If you haven’t planned for a sudden medical situation that might have…

Read More →
Illustration of three senior couples dancing shag, two-step, and ballroom styles across a lit outdoor terrace at sunset.

11 Retirement Towns With Active Dance Clubs and Social Groups

Explore 11 top retirement towns with active dance clubs, vibrant social lives, and tax-friendly perks…

Read More →
A panoramic view of the twin crater lakes of Sete Cidades in the Azores, featuring one blue and one green lake surrounded by lush green hill

9 Scenic (and Cheap) Destinations That Rarely Disappoint

Discover nine scenic and affordable travel destinations perfect for retirees, featuring hidden gems that maximize…

Read More →

7 Best Things You Could Do With Your Found Money

A woman holds a cup and looks at the beach, enjoying the rewards of her…

Read More →
Older woman wearing an I Voted sticker on her coat outside a town hall polling station with people on the steps.

11 States Where Retirees Make Up a Huge Share of Voters

Explore the 11 states where retirees make up a massive share of the electorate, driving…

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.