In some states tax season is harder than the others, but don’t worry — we’ve got your back! To make the most out of your retirement, we’ve rounded up the most tax-friendly states considering taxes on retirement inheritance, distributions, property, sales, Social Security, and estates.
#1 State: Alaska
In this state there’s no income tax, no state sales tax, and in Anchorage and Fairbanks there’s no local sales tax. The average local sales tax is 1.43 percent. There’s actually no inheritance tax, no estate tax, and all permanent residents who live there more than one year get a piece of the state’s oil dividends ($1,600 last year).
The median property tax on the median home value of $257,100 is $3,048, which isn’t great, but homeowners 65 and older (or surviving spouses 60 and older) are exempt from municipal taxes on the first $150,000 of assessed value of their property.