Tax-friendly states for retirees
By Sol Lakein, founder of Slower Sundays. Updated November 2026.
- Delaware#1 for retireesScore 84 of 100
- Wyoming#2Score 84 of 100
- Alaska#3Score 84 of 100
The 10 most tax-friendly states for retirees
| # | State | Score | Taxes Social Security | Income tax | Property tax | Sales tax |
|---|---|---|---|---|---|---|
| 1 | Delaware | 84 | No | 6.60% | 0.49% | 0.00% |
| 2 | Wyoming | 84 | No | None | 0.56% | 5.56% |
| 3 | Alaska | 84 | No | None | 1.06% | 1.82% |
| 4 | New Hampshire | 82 | No | None | 1.43% | 0.00% |
| 5 | Nevada | 81 | No | None | 0.47% | 8.24% |
| 6 | Tennessee | 78 | No | None | 0.46% | 9.61% |
| 7 | Florida | 78 | No | None | 0.80% | 6.98% |
| 8 | Idaho | 76 | No | 5.30% | 0.42% | 6.03% |
| 9 | Arizona | 76 | No | 2.50% | 0.44% | 8.52% |
| 10 | South Dakota | 76 | No | None | 1.04% | 6.11% |
How we scored them
- 30% Social Security not taxed by the state
- 25% Lower top income tax rate
- 25% Lower effective property tax rate
- 20% Lower combined sales tax rate
Income tax uses the top 2026 rate on wages, so it overstates the tax for many retirees with modest incomes. Property tax is the statewide median bill divided by the median home value. Sales tax is the state rate plus the average local rate. Pension and retirement-account rules are not scored because they depend on age, income and the type of pension.
Every state, ranked
| # | State | Score | Taxes Social Security | Income tax | Property tax | Sales tax |
|---|---|---|---|---|---|---|
| 1 | Delaware | 84 | No | 6.60% | 0.49% | 0.00% |
| 2 | Wyoming | 84 | No | None | 0.56% | 5.56% |
| 3 | Alaska | 84 | No | None | 1.06% | 1.82% |
| 4 | New Hampshire | 82 | No | None | 1.43% | 0.00% |
| 5 | Nevada | 81 | No | None | 0.47% | 8.24% |
| 6 | Tennessee | 78 | No | None | 0.46% | 9.61% |
| 7 | Florida | 78 | No | None | 0.80% | 6.98% |
| 8 | Idaho | 76 | No | 5.30% | 0.42% | 6.03% |
| 9 | Arizona | 76 | No | 2.50% | 0.44% | 8.52% |
| 10 | South Dakota | 76 | No | None | 1.04% | 6.11% |
| 11 | West Virginia | 75 | No | 4.58% | 0.51% | 6.59% |
| 12 | Kentucky | 75 | No | 3.50% | 0.72% | 6.00% |
| 13 | South Carolina | 73 | No | 5.21% | 0.45% | 7.49% |
| 14 | North Carolina | 73 | No | 3.99% | 0.64% | 7.00% |
| 15 | Mississippi | 73 | No | 4.00% | 0.65% | 7.06% |
| 16 | Indiana | 73 | No | 2.95% | 0.74% | 7.00% |
| 17 | Oregon | 73 | No | 9.90% | 0.79% | 0.00% |
| 18 | Washington | 73 | No | None on wages | 0.81% | 9.51% |
| 19 | Arkansas | 71 | No | 3.70% | 0.50% | 9.46% |
| 20 | Virginia | 71 | No | 5.75% | 0.71% | 5.77% |
| 21 | North Dakota | 71 | No | 2.50% | 0.92% | 7.09% |
| 22 | Hawaii | 70 | No | 11.00% | 0.26% | 4.50% |
| 23 | Alabama | 70 | No | 5.00% | 0.38% | 9.46% |
| 24 | Louisiana | 70 | No | 3.00% | 0.55% | 10.11% |
| 25 | Pennsylvania | 69 | No | 3.07% | 1.12% | 6.34% |
| 26 | Georgia | 68 | No | 4.99% | 0.77% | 7.49% |
| 27 | Texas | 68 | No | None | 1.32% | 8.20% |
| 28 | Oklahoma | 66 | No | 4.50% | 0.76% | 9.06% |
| 29 | Missouri | 66 | No | 4.70% | 0.79% | 8.44% |
| 30 | Maine | 66 | No | 7.15% | 0.92% | 5.50% |
| 31 | Michigan | 66 | No | 4.25% | 1.17% | 6.00% |
| 32 | Ohio | 66 | No | 2.75% | 1.22% | 7.29% |
| 33 | Maryland | 65 | No | 6.50% | 0.98% | 6.00% |
| 34 | Iowa | 64 | No | 3.80% | 1.27% | 6.94% |
| 35 | District of Columbia | 62 | No | 10.75% | 0.67% | 6.00% |
| 36 | Nebraska | 62 | No | 4.55% | 1.31% | 6.98% |
| 37 | Wisconsin | 60 | No | 7.65% | 1.20% | 5.72% |
| 38 | Massachusetts | 59 | No | 9.00% | 1.01% | 6.25% |
| 39 | Kansas | 58 | No | 5.58% | 1.24% | 8.69% |
| 40 | Montana | 53 | Some | 5.65% | 0.69% | 0.00% |
| 41 | California | 50 | No | 13.30% | 0.72% | 8.99% |
| 42 | Illinois | 48 | No | 4.95% | 1.92% | 8.96% |
| 43 | New York | 45 | No | 10.90% | 1.42% | 8.54% |
| 44 | Utah | 43 | Some | 4.50% | 0.50% | 7.42% |
| 45 | New Jersey | 43 | No | 10.75% | 1.82% | 6.60% |
| 46 | Colorado | 42 | Some | 4.40% | 0.52% | 7.89% |
| 47 | New Mexico | 38 | Some | 5.90% | 0.63% | 7.67% |
| 48 | Rhode Island | 33 | Some | 5.99% | 1.02% | 7.00% |
| 49 | Minnesota | 24 | Some | 9.85% | 1.04% | 8.14% |
| 50 | Connecticut | 24 | Some | 6.99% | 1.59% | 6.35% |
| 51 | Vermont | 22 | Some | 8.75% | 1.51% | 6.39% |
Retirement taxes: questions people ask
What is the most tax-friendly state for retirees?
On our four-tax ranking, Delaware, followed by Wyoming and Alaska. Delaware does not tax Social Security, has a top income tax rate of 6.60%, an effective property tax rate of 0.49% and a combined sales tax of 0.00%.
What is the least tax-friendly state for retirees?
Vermont scores lowest on the same four measures.
Does this ranking include pensions, 401(k)s and IRAs?
No. States treat pension and retirement-account withdrawals very differently by age, income and type of pension, so a single score would mislead. If most of your income comes from a pension or IRA, check that state's rules before you decide.
How is the score calculated?
Each state gets points on four measures compared with the other states and DC: social security not taxed by the state (30%), lower top income tax rate (25%), lower effective property tax rate (25%), lower combined sales tax rate (20%). The points add up to a score out of 100.
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Sources for this page
- Property tax paid and home value: US Census Bureau, American Community Survey 2025 1-year, tables B25103 and B25077
- Income tax rates: Tax Foundation, State Individual Income Tax Rates and Brackets, 2026 (as of January 1, 2026), with Georgia and South Carolina updated for 2026 laws signed later
- Sales tax rates: Tax Foundation, State and Local Sales Tax Rates, 2026 (January 20, 2026)
- States that tax Social Security in 2026: Kiplinger, States That Tax Social Security Benefits in 2026