Taxes in Retirement: How All 50 States Tax Retirees

We rated every state, plus the District of Columbia, on their taxes in retirement. Some of the results might surprise you.

picture of elderly couple driving down a road in the country
(Image credit: Getty Images)

To move or not to move? That is the question for many retirees. If you want to be closer to your grandchildren, enjoy better weather or pay less for housing, moving to a different state may be the way to go. But retirees often overlook an important factor when deciding if, or where, they should relocate — state and local taxes.

Your overall state and local tax burden can vary widely from one place to another. The difference between taxes in one location versus another could be in the tens of thousands of dollars for some people. And, while most people tend to focus on income taxes, other taxes — like sales and property taxes — can add up quickly, too.

So, if you're thinking of moving in retirement, where does your current state and your destination state fit it when it comes to taxes? We ranked all 50 states, plus the District of Columbia, based on how they tax retirees. The results are below, along with an overview for each state of taxes that most affect retirees. Hopefully, the information below will help you determine if moving to a different state makes sense for your retirement budget.

States are listed alphabetically. Income tax bracket information is for the 2022 tax year, unless otherwise noted. Sales tax values are for 2022 and were compiled by the Tax Foundation. Property tax values are for 2020, which is the most recent data available. Details on tax data sources and our ranking methodology can be found at the end of this article.