South Dakota
Overall Rating for Taxes on Retirees: Most tax-friendly
State Sales Tax: 4.5% state levy. Localities can add as much as 4.5%, and the average combined rate is 6.40%, according to the Tax Foundation. Many services are taxed, as are groceries.
State Taxes on Social Security: Benefits are not taxed.
State Income Tax Range: There’s no state income tax.
Property Taxes: The median property tax on South Dakota’s median home value of $146,700 is $1,943.
