• The tax trifecta: Alaska and New Hampshire levy no tax on sales, income or Social Security. Alaska offers another bonus to residents: an annual cash payment from royalties on the state's vast oil deposits. In 2013 the Alaska Permanent Fund Dividend was $900.
• Seven decent sanctuaries: Florida, Nevada, South Dakota, Tennessee, Texas, Washington and Wyoming have sales taxes but don't impose state income taxes, or levies on Social Security and pension income.
• Three shopping shelters: Delaware, Montana and Oregon do not have a sales tax.
• Friends of retirees: Income from Social Security gets a pass in 36 states and Washington, D.C.; Iowa will join the club this year.
• The fine print: A number of states have other levies, such as taxes on interest and dividends (New Hampshire and Tennessee), big sales taxes (New York and Arizona) or high property taxes (New Jersey and Connecticut). So consult a financial adviser before pulling up stakes for the haven of your dreams.
Also of Interest
- Does money buy you happiness?
- 10 budget-friendly trips
- Need Help Filing Your Taxes? Get free assistance from AARP Foundation Tax-Aide
Join AARP Today — Receive access to exclusive information, benefits and discounts
Next ArticleRead This