Free and Clear

What about exempting all individual income from taxes? You might want to turn your attention to Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming, then. New Mexico is also a good bet, but only if you think you’ll live past 100. Only then will you be able to skip state taxes on income.

As of right now, New Hampshire and Tennessee only tax dividend and interest income, though Tennessee is working on removing this extra tax burden for seniors. As such, the changes are said to set in by 2022, so if you’re planning on retiring around that time, it’s definitely good news for your wallet.