State and local taxes can have a big impact on your retirement budget. By the editors of Kiplinger's Personal Finance Originally published November 12, 2015 No matter where you live in retirement, your federal taxes will be about the same if you take the standard deduction. Not so for state and local taxes.See Also: Cheapest Places Where You Will Want to Retire Start with income tax. Seven states--Alaska, Florida, Nevada, South Dakota, Texas, Washington and Wyoming--have no state income tax whatsoever. Next, consider taxes on Social Security. Thirteen states tax your retirement benefits to some degree. Then there’s sales tax. Some states exempt food and medicine, while others famously have no sales tax at all. Some states will tax every dime you spend. Most states allow cities and counties to assess sales taxes, too. Advertisement Finally, weigh property taxes. Rates vary from state to state and even among cities in the same state. Luckily, many places offer retirees breaks on property taxes. It pays to check. Taxes are just one aspect of a happy retirement, but they can be a costly one. Use Kiplinger’s state-by-state guide to taxes on retirees to help you evaluate potential retirement destinations. To give you a head start on your search we already identified the 10 most tax-friendly states for retirees. Take a look.