13 Low Tax States to Retire

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4. Illinois

Nicknamed “the Prairie State,” this midwestern state is marked by farmland, forests, rolling hills, and wetlands. It’s also known as the “Land of Lincoln” as Abraham Lincoln spent most of his life there.

Illinois allows retiree residents to subtract their Social Security and pension income from their federal adjusted gross income.

But real estate taxes are high, costing homeowners a median of $4,480 in 2018. Shoppers also pay a 6.25% sales tax on many purchases.

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