Best States for Retirees (Tax Rankings) (2025)
Retirement tax friendliness depends on multiple factors: whether the state taxes Social Security, pension/401(k) exclusions, property tax burden, estate/inheritance tax, and overall tax burden. We score each dimension and rank the total.
| Rank | State | Rating |
|---|---|---|
| 1 | Alaska | Very Friendly |
| 2 | Arizona | Very Friendly |
| 3 | Florida | Very Friendly |
| 4 | Mississippi | Very Friendly |
| 5 | Nevada | Very Friendly |
| 6 | New Hampshire | Very Friendly |
| 7 | South Carolina | Very Friendly |
| 8 | South Dakota | Very Friendly |
| 9 | Tennessee | Very Friendly |
| 10 | Texas | Very Friendly |
| 11 | Wyoming | Very Friendly |
| 12 | Colorado | Friendly |
| 13 | Delaware | Friendly |
| 14 | Georgia | Friendly |
| 15 | Illinois | Friendly |
| 16 | Louisiana | Friendly |
| 17 | Missouri | Friendly |
| 18 | New Mexico | Friendly |
| 19 | North Carolina | Friendly |
| 20 | North Dakota | Friendly |
| 21 | Oklahoma | Friendly |
| 22 | Pennsylvania | Friendly |
| 23 | Washington | Friendly |
| 24 | Alabama | Moderate |
| 25 | Arkansas | Moderate |
| 26 | Hawaii | Moderate |
| 27 | Idaho | Moderate |
| 28 | Indiana | Moderate |
| 29 | Iowa | Moderate |
| 30 | Kansas | Moderate |
| 31 | Kentucky | Moderate |
| 32 | Maine | Moderate |
| 33 | Maryland | Moderate |
| 34 | Massachusetts | Moderate |
| 35 | Michigan | Moderate |
| 36 | Montana | Moderate |
| 37 | Nebraska | Moderate |
| 38 | New Jersey | Moderate |
| 39 | New York | Moderate |
| 40 | Ohio | Moderate |
| 41 | Oregon | Moderate |
| 42 | Rhode Island | Moderate |
| 43 | Virginia | Moderate |
| 44 | Wisconsin | Moderate |
| 45 | California | Unfriendly |
| 46 | Connecticut | Unfriendly |
| 47 | Minnesota | Unfriendly |
| 48 | Utah | Unfriendly |
| 49 | Vermont | Unfriendly |
| 50 | West Virginia | Unfriendly |
Methodology
Composite score based on: Social Security taxation (25%), retirement income exclusions (25%), property tax rate (20%), estate/inheritance tax (15%), and total tax burden (15%).
Frequently Asked Questions
Frequently Asked Questions
Most states do not tax Social Security. As of 2025, only a handful of states tax Social Security income, and several of those offer partial exemptions based on income level.
Key factors include: no tax on Social Security, exemptions for pension and 401(k) income, low property taxes, no estate or inheritance tax, and a low overall tax burden.
No. Cost of living, healthcare access, climate, and quality of life matter too. A state with slightly higher taxes but lower housing costs and better healthcare may be a better overall choice.
More Tax Rankings
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State Income Tax Rates Ranked
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Property Tax Rates by State
All 50 states ranked by effective property tax rate, from Hawaii's 0.27% to New Jersey's 2.23%.
Sales Tax Rates by State
All 50 states ranked by combined state and local sales tax rate, including the 5 states with no sales tax.
Capital Gains Tax by State
How all 50 states tax capital gains, from no-tax states to California's 13.3% top rate on investment income.
Estate & Inheritance Tax by State
Which states have estate or inheritance taxes, exemption amounts, and how they compare, including Maryland, the only state with both.
See How Taxes Affect Your Paycheck
Use our income tax calculator to compare your after-tax income across states.
Try the Tax CalculatorSource: U.S. Internal Revenue Service, 2026.