Alaska: The Tax-Friendliest State for Retirement

The cold-weather destination offers a warm welcome to retirees.

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.

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David Muhlbaum
Former Senior Online Editor

In his former role as Senior Online Editor, David edited and wrote a wide range of content for With more than 20 years of experience with Kiplinger, David worked on numerous Kiplinger publications, including The Kiplinger Letter and Kiplinger’s Personal Finance magazine. He co-hosted  Your Money's Worth, Kiplinger's podcast and helped develop the Economic Forecasts feature.