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What are the most tax-friendly states for retirees?

Some states are more tax-friendly for retirees than others because they exempt Social Security, pensions, or other retirement income and/or have low property and sales taxes. The most tax-friendly states include:

• Florida – No state income tax at all; Social Security and retirement income are not taxed.
• Delaware – No state sales tax; Social Security and most retirement income are tax-exempt.
• Pennsylvania – Social Security and most retirement income (pensions, 401(k)s) are tax-free for residents.

Even in tax-friendly states, retirees should consider:

• Property taxes (some states allow exemptions or reductions for seniors)
• Sales taxes (can affect day-to-day spending)
• Income taxes on retirement savings (rules vary for 401(k), IRA, and pension withdrawals)

When planning retirement, consider both lifestyle and taxes. Choosing a tax-friendly state can help your savings last longer and make your retirement more predictable.