10 Most Tax-Friendly States For Retired Taxpayers

9th Best: Arkansas

The downside: Arkansas is no stranger to ridiculously high sales taxes. Similar to Tennessee, the combined state and local average is 9.51%. Groceries are subject to a 0.125% tax while prescription drugs are not taxed.

Why it’s still a good place to move: There’s no estate or inheritance tax to pay in Arkansas and Social Security benefits are also non-taxable. On the other hand, other types of retirement income such as distributions from retirement plans, are subject to certain tax after the first $6,000 is exempt.

The median is $612 per $100,000 in home value and property taxes are lower than in most other states in the country.

RELATED: 12 Best States to Retire in 2021

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