Retired in America

Your Guide to a Confident Retirement

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

8 Most Tax-Friendly States To Retire in 2022

November 16, 2021 · Personal finance
Photo by Rawpixel.com from Shutterstock
  • Tennessee – Residents that live in the Volunteer State don’t have to pay any taxes on Social Security benefits, pensions, or distributions from their retirement plans. That’s due to the fact that Tennessee is one of the few states with no income tax. Also, there aren’t any estate or inheritance taxes, which could put your heirs at ease. The situation is just as good when it comes to property taxes. A hypothetical couple with a $250,000 home would have to pay about $1,590 per year in property taxes, which is well below the national average.
  • Arkansas – Although you may not think that Arkansas is one of the places you’d consider as a retirement destination, maybe it should be. The Natural State has many things to offer to retirees. Arkansas has income tax rates that are structured to advantage retirees with lower incomes. Social Security benefits are tax-free, and the state gives you a broad-based exemption of up $6,000 for other types of retirement income.
  • Arizona – The State of the Grand Canyon exempts Social Security benefits from state income taxes, plus up to $2,500 of income from federal and any retirement plan from the Arizona government. Plus, the income tax rates are relatively low for many retirees. The estimated property tax on a hypothetical retired couple with a $250,000 home in Arizona is no more than $1,543 per year. For a second hypothetical couple with a $350,000 residence, the estimated annual tax is only $2,160. For the record, both these amounts are below the national average.
  • South Carolina – The Palmetto State can welcome you with a handful of good old southern hospitality, by offering a charming collection of income tax breaks. First, Social Security benefits are completely exempt. Second, taxpayers aged 65 or older can exclude up to $10,000 of their retirement income or deduct $15,000 of other taxable income. There are also low property tax rates that are extremely helpful. The average property tax throughout the state on a $250,000 home is only $1,363. These numbers make South Carolina the sixth lowest in the country when it comes to houses at this price point.
Pages: 1 2 3

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 woman looking thoughtfully at her phone in a bright, modern home office. 6 Social Security Scams You Need to Pay Attention to
  • A happy retired couple enjoying the sunset on a beautiful porch. 8 States to Retire For Less Than 45K a Year
  • A retired couple looking at a map on a sunny balcony overlooking a beautiful coastal town. 10 Countries to Retire Where $150K Is More Than Enough
  • A happy retiree working on a laptop on a sunny patio, symbolizing flexible part-time work. 20 Great Part-Time Jobs For Retirees
  • A senior couple smiling while looking at a tablet in a bright, modern kitchen. 5 Crucial Medicare Changes Coming Soon
  • A senior couple happily unpacking groceries in a bright, modern kitchen. 9 Ways to Shop at Costco Without a Membership
  • A happy retired couple stands on the porch of a beautiful, sunny home, symbolizing an affordable and joyful retirement. 10 Best Places to Retire That Won't Break the Bank
  • An older man confidently using a laptop in a sunlit home office, symbolizing digital security. 7 Common Passwords To Avoid
  • A retired couple looking out a window in their bright, downsized modern home. 11 Mistakes to Avoid When Downsizing Your Home
  • A retired couple smiling on a balcony overlooking a scenic coastal village at sunset. 12 Best Countries to Live Perfectly Well on Social Security

Newsletter

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

Related Articles

22 Useful Tips to Maximize Your Retirement Benefits

Wait until age 70 Workers can start claiming Social Security benefits as early as age…

Read More →

11 Out of the Box Methods to Save for Retirement

Put Your Emergency Fund To Work For Your Nest Egg By now you’ve probably learned…

Read More →

25 Changes to Your 401(K) Plan That Can Save Your Retirement

Reconcile Your Investment Objectives and Risk Tolerance Once again, it all goes back to your…

Read More →

Divorcing in Retirement? Here Are 15 Ways To Safeguard Your Financial Future

A senior wearing a wedding ring uses a calculator and tablet to determine their total…

Read More →

11 Social Security Mistakes That Could Ruin Your Retirement

1. Trying to claim benefits before you’re eligible to get them You probably know that…

Read More →
A senior couple smiling while looking at a tablet in a bright, modern kitchen.

5 Crucial Medicare Changes Coming Soon

Discover the 5 crucial Medicare changes coming soon, from negotiated drug prices and out-of-pocket caps…

Read More →

8 Things Medicare Does NOT Cover Right Now

Medicare doesn’t cover prescription drugs – Although Medicare doesn’t provide any coverage for outpatient prescription drugs,…

Read More →

12 States That Tax Social Security Benefits

Colorado For some beneficiaries that are younger than 65, Social Security benefits that are up…

Read More →

8 Reasons Your Retirement Will Be Tougher Than You Expect

2. Seniors can’t shake recent tough times Nowadays we think of the Great Recession as…

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.