States with low taxes and affordable living for retirees

States that combine low taxes with an affordable cost of living are especially attractive for retirees on a fixed income. The best options tend to have no (or very low) state income taxes, exemptions or credits for retirement income, and a lower overall cost of everyday living.

Top States for Low Taxes and Affordability

Wyoming: No state income tax, low property taxes, and no estate tax. The cost of living in smaller communities is relatively affordable, and the state has a 4% base sales tax.
Tennessee: No state income tax, Social Security and retirement income are untaxed, and property taxes are lower than the national average. The cost of living is about 10% below the U.S. average.
Florida: No state income tax, no tax on retirement income, and no inheritance or estate taxes. Affordable living is still possible in less tourist-heavy regions, and the state features abundant senior amenities.
Texas: No state income tax and a range of affordable communities. However, property taxes can be high, so choosing the right location within the state is important.
Delaware: No state or local sales tax, low property taxes, and no tax on Social Security benefits. Certain towns offer reasonable living costs while being close to urban amenities.
South Carolina: No tax on Social Security benefits, deductions for other types of retirement income, and low property taxes. The cost of living is about 6% below the national average.
Mississippi: No income tax on retirement income, very low property taxes, and among the lowest living costs nationally—though healthcare access may vary by region.
Pennsylvania: No tax on Social Security or most retirement income, with a flat 3.07% income tax on other earnings. Many communities are affordable, especially outside Philadelphia and Pittsburgh.
Nevada: No state income tax, relatively low property taxes, and affordable living, especially in cities like Reno and Las Vegas. The state also enables access to good healthcare.

Key Considerations

Nine U.S. states have no income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming.
States like Illinois, Iowa, Mississippi, and Pennsylvania (after 65) don’t tax retirement income, making them appealing even with a low flat tax on other types of income.
Property and sales taxes can affect affordability, so review local rates when choosing a location.

Please check state government websites before making any decisions to see if any changes have been made to their tax laws.