New Mexico

When it comes to Social Security benefits, they have taxed to the same extent that they are taxed at the federal level. But, even so, there is no inheritance tax or estate tax in New Mexico. The income tax range is as low as 1.7% (on up to $5,500 of taxable income for single filers and $8,000 for married couples), and as high as 5.9% (on taxable income over $210,000 for single filers and over $215,000 for joint filers).

Also, in New Mexico, the median property tax rate is $776 per $100,000 of assessed home value. While groceries are exempt from taxes, clothing items are taxable.