#10 State: Georgia
This state is definitely a retirement destination. Georgia doesn’t impose either an estate or inheritance tax, has an average state and local sales tax of 7.23 percent, and has state income tax ranging from 1 percent (on the first $750 of taxable net income for single filers or $1,000 for joint filers) to 6 percent (on taxable income over $7,000 for single filers or $10,000 for joint filers).
Social Security income is exempt from state taxes, as is up to $35,000 of most types of retirement income (pensions, annuities, interest, dividends, net income from rental property, capital gains, royalties, and the first $4,000 of earned income). For those 65 and older, the exemption is $65,000 per taxpayer, or $130,000 per couple.
