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

2nd Best: Hawaii

The downside: Hawaii residents, especially those in higher income brackets, paid more than double the national average in state taxes last year. For example, if your income exceeds $200,000 (or $400,000 for joint filers) it’s subject to a hefty 11% income tax.

Estate taxes start at 10% for properties with a value of $5.49 million and more. If you’re part of middle-income earners, Hawaii might not be suitable for you because of its exorbitant housing prices.

Why it’s still a good place to move: For starters, there’s nothing like spending your retirement years in a tropical paradise like Hawaii. Secondly, Hawaii boasts very low property taxes, with a median of just $280 per $100,000 in assessed home value.

What’s more, the sales tax in Hawaii does not exceed 4%, with the combined state and local average tax rate going as high as 4.5% in certain municipalities. Although groceries are taxed, Social Security benefits and employer contributions to pensions and 401(k) plans are exempt from taxes.

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Your email address will not be published.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

  • Older woman in a green coat holding a package and looking at her smartphone beside snow-covered mailboxes outdoors. 12 Scams Targeting Retirees During the Holidays
  • A senior man in glasses opens mail marked "Important Tax Return Document Enclosed" inside a home entryway. 9 Tax Forms Retirees Should Expect in the Mail
  • A man reading a document in a woodworking shop next to a workbench and a wall calendar. 7 Signs Your Tax Bracket Will Change Next Year
  • A mature man in a fleece vest holds a gutter guard and work gloves while standing outside a suburban home in autumn. 7 Insurance Policies Worth Reviewing Every Fall
  • A senior woman reviews tax strategy papers and a checklist at a sunlit greenhouse table filled with plants. 10 Tax Credits Retirees Often Forget to Claim
  • A woman sits at a wooden library desk next to a digital tablet displaying an excellent credit report summary. 9 Reasons Retirees Are Checking Their Credit Reports This Month
  • Senior woman working on a laptop resting on a lap desk while seated comfortably in an armchair with an ottoman. 11 Side Gigs Perfect for Retirees With Mobility Limitations
  • A woman sits at a wooden table reviewing financial documents and account statements beside a window and bookshelf. 9 Things to Do With Inherited Retirement Accounts
  • Senior couple in a sunlit living room with large windows, one looking outside and one browsing a wooden bookshelf. 8 Reasons Retirees Are Choosing Co-Ops Over Condos
  • A smiling senior vendor weighing produce on a hanging scale for a customer at a sunny outdoor farmers market. 7 Part-Time Jobs at Farmers Markets and Local Fairs for Seniors

Newsletter

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

Related Articles

9 Easy Ways to Gradually Transition into Retirement

Consulting Just because you’ve retired, doesn’t mean you have to be out of the game.…

Read More →

12 Most Affordable U.S. Cities Where You’ll Really Want to Retire

Modern glass buildings and busy professionals illustrate the high-cost corporate environment found throughout San Jose.…

Read More →

14 Retirement Cities With Awful Weather

 Grand Forks, North Dakota – Grand Forks in North Dakota has its fair share of…

Read More →
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

Discover how a $150,000 nest egg combined with Social Security can fund a comfortable, vibrant…

Read More →
Adirondack chairs on a wooden deck overlooking a misty lake with a dock, canoe, and lakeside cabin at sunrise.

7 Lakefront Towns Where Retirees Get More House for Less

Explore 7 scenic, budget-friendly lakefront towns across America where retirees can buy spacious waterfront homes…

Read More →

6 Things that Might Happen to Social Security if Trump Gets Reelected

Keep an eye out for potential changes Since we don’t know who will win the…

Read More →
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

Discover the 10 best affordable places to retire, balancing low housing costs, tax-friendly policies, and…

Read More →

We Found The Best 20 Neighborhoods for Retirees

12. Great Northwest — San Antonio Looking for a great retirement destination while on a…

Read More →
A happy retired couple enjoying a sunny afternoon on their patio, representing financial freedom.

8 Types of Retirement Income That Are Exempt From Taxes

Discover 8 effective retirement tax strategies to generate tax-free retirement income, lower your overall tax…

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.