The Lowest Tax States for Retirees

Reader Comments
Back to blog

new hampshire may not have sales tax but gets it out of you with ultra high property taxes and high registration fees.

ron of NH 4:44PM April 17, 2010

Take Florida for example, which has no state income tax. Although there are restrictions on how much property taxes can increase per year, this state's property taxes are at least three times the amount North Carolina charges.
Don't be fooled, Government always finds a way to build it's empire !

Larry Ingle of FL 3:54PM April 17, 2010

Property taxes in no-income tax Nevada are relatively low. State law limits them to a maximum of 1.26% of the fair market value of your home and also strictly limits annual increases if the market value goes up. Many places in Nevada have half that rate. Where I live, the annual property tax on a typical modern 3 bedroom 2 bathroom home on a large lot is about $650. Of course, in no-income tax Wyoming, that would be more like $75 per year...
Home prices are relatively low, too. I purchased a nice 2500 square foot home with what I saved on my California state income taxes the first year that I moved from there to here. I have been laughing all the way to the bank ever since!

D. Pearson of NV 3:07PM April 17, 2010

Think North Carolina which doesn't charge state income tax on retired state or Federal pensions. Its called the Bailey exemption.

Dave of NC 1:14PM April 17, 2010

Most retirees own their homes, so what about property taxes? That adds up to way more than income or sales taxes, at least in Texas.

Lugan Smeltnik of TX 1:10PM April 17, 2010

Hey Attila, how do you feel about Paul Wolfowitz getting his girlfriend a job at the World Bank at about $193K per year, EXEMPT from US income taxes? I'm thinking that wasn't a Democratic Party initiative!

Tom A of IA 6:38PM April 15, 2010

Governments at all levels will raise income and capital gains taxes until there is no income or profits left to tax. Then they will impose a tax on net worth until they destroy most if not all personal wealth. These people,like Obama, Reid, Pelosi, Biden, Schumer, Reich, Miller, Clinton, hate personal freedom and independence (except theirs)and want to iliminate it under the broad heading of "social justice."

Norman Parsons of CA 3:04PM April 15, 2010

You had mentioned that Tennessee was a runner-up in the Lowest State Tax Catagory because they taxed only dividends and interest. They also tax Capital Gains! The tax on dividends, interest and capital gains is 6%. There is no tax if you receive dividends, interest and capital gains from Tennessee investments. My wife and I moved to Tennessee a few years ago. I thought there wasn't a State tax, but found out there was. I tried to get the forms for filing and could't find any. What you have to do is down load them or get them from the State Capital or some other State office. You can't go to the library or any other convient place and pick them up. I had a question about the tax so I called the State revenue office. After their answering my question, I mentioned that I thought a third of the people who should be paying State tax aren't because they don't even know there is one. I was SHOCKED by his response. He said that he thought the percentage was higher.

Terry Schuller of TN 10:50AM April 15, 2010

You failed to include the high (some locals very high) property taxes and multiple state, county, city and association utility taxes. For example, Texas does not tax income, but, in the wrong area you may be paying three to four times as much tax as other states .

dennis edwards of TX 10:42AM April 15, 2010

while it is true the state sales tax in Louisiana is only 4% you can't forget the local option sales tax which in my town is 5.25% additional. Most Town and cities in Louisiana have a local taxthat pushes the sales tax to almost 10% which is applied to everything you buy including groceries and medicines.

Gary of LA 9:31AM April 15, 2010