13 Low Tax States to Retire

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1. Alabama

Welcome to the “Heart of Dixie” and the “Cotton State”, Alabama. This Gulf Coast state doesn’t tax Social Security benefits.

Traditional pension payments are also excluded from taxable state income. Property owners in Alabama paid a median of just $591 in real estate taxes in 2018.

The state sales tax rate is also a relatively low 4%, but there may be additional local sales taxes in some areas of the state.

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