How All 50 States Are Taxing Retirees In 2021

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9.Delaware: very tax-friendly

Delaware is the perfect place to retire because you’ll have no sales tax, low property taxes, or death taxes there. Also, you’ll have more disposable income to spoil your grandchildren, because property taxes are so low.

  • The State Income Tax Range here is 2.2% (on taxable income from $2,001 to $5,000)- 6.6% (on taxable income above $60,000);
  • There’s no Average Combined State and Local Sales Tax Rate;
  • The Median Property Tax Rate is $562/$100,000 of assessed home value;
  • No Estate Tax or Inheritance Tax.

10.District of Columbia: very tax-friendly

Washington, D.C., is a good place to consider as your next retirement home, mostly for middle and lower-income seniors. Even though D.C. exempts Social Security income, mostly all the other forms of retirement income are taxed by the city.

  • The State Income Tax Range is 4%(on taxable income up to $10,000) – 8.95% (on taxable income over $1,000,000);
  • The Average Combined State and Local Sales Tax Rate is 6%;
  • The Median Property Tax Rate is $564/$100,000 of assessed home value;
  • There is Estate Tax, but no Inheritance Tax.

11.Georgia: tax-friendly

The Peach State is a great place to retire, thanks to its low-tax climate.

  • The State Income Tax Range is 1%(on the first $1,000 of taxable net income for married couples; on the first $750 for individual filers; on the first $500 for married filers that filled separately)- 5,75% (on the first $1,000 of taxable net income for married filing together; on the first $750 for individual filers; and on the first $500 for married couples filing individually);
  • The Average Combined State and Local Sales Tax Rate is 7.33%;
  • The Median Property Tax Rate is $875/$100,000 of assessed home value;
  • No Estate Tax or Inheritance Tax.

12.Hawaii: very tax-friendly

Although Hawaii is famous for its high costs of living, for seniors it can be a great place to retire.

  • The State Income Tax Range is 1.4% (on taxable income up to $4,800 for married joint filers; up to $2,400 for married couples that are filing separately and individual filers)- 11%(on taxable income over $400,000 for married couples filing together and surviving spouses; on over $200,000 for married couples filing separately and individual filers);
  • The Average Combined State and Local Sales Tax Rate is 4.44%;
  • The Median Property Tax Rate is $280/$100,000 of assessed home value;
  • There is Estate Tax, but no Inheritance Tax.
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