Retirees have special concerns when it comes to taxes. Does the state tax Social Security benefits? Are there property tax breaks for seniors? The answers can have a big impact on a fixed income.
We analyzed the tax policies of all 50 states and the District of Columbia to identify the tax-friendliest state for retirement. Surprisingly, our top pick isn’t Florida or Arizona, though both earn high marks. You need to head north—way north—to find the best state for taxes on retirees. It’s Alaska.
The Last Frontier isn’t a natural choice for retirement, but perhaps it should be. Yes, it’s cold. But it’s also a haven for outdoorsy types and the scenery is spectacular. As for taxes, there’s no state sales tax, estate tax, inheritance tax or income tax.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
Alaska residents enjoy an added bonus: a cut of the state’s oil riches. The annual dividend check topped $2,000 in 2015.
Check out 14 more high-ranking states for taxes on retirees.
-
Retirement Account Moves to Make Before December 31You can make retirement account moves before year-end. Consider topping off your contributions and taking your RMDs.
-
Three Essential Strategies for Managing Your Inheritance
Before you start spending your windfall, take some time to figure out your taxes, how you might invest and what your long-term plan looks like.
-
150,000 Minnesota Tax Rebate Checks Are on the Way — Again
Tax Rebates Unclaimed Minnesota rebate checks could be forfeited to the state, so you don’t want to miss your payment this time around.
-
Estate Tax Exemption Amount Increases for 2024
Estate Tax The estate tax exemption amount is going up for 2024. Will your heirs escape a tax bill?
-
How Much Is the Child Tax Credit for 2024?
Tax Credits What family tax credits and deductions will you qualify for in 2024? And how much are they worth?
-
How Much Can You Contribute to Your HSA and FSA in 2024?
Medical Savings The IRS has announced HSA and FSA contribution limits for 2024.
-
Standard Deduction 2024 Amounts Are Here
Income Tax What will the standard deduction for your filing status be in 2024?
-
How Does Being a Veteran Affect Your Taxes?
Veterans Veterans may be eligible for certain federal and state tax benefits.
-
The Extra Standard Deduction for People Age 65 and Older
Tax Deductions The extra standard deduction can help older adults reduce their taxable income.
-
Charitable Donations: What To Know About Scams and Taxes Before You Give
Donations Giving to a charity can make you feel good and lower your tax bill, but the IRS says to beware of fake charities.
