10 Great Low-Tax Places to Retire

These havens are lighter on your wallet and offer good quality of life.

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Perhaps the most tax-friendly state for retirees is Alaska. The geographically largest state in the union is the only one without any kind of income or sales tax. The city of Juneau levies a 5 percent sales tax, but seniors ages 65 and older who have lived in the city for at least 30 days and plan to remain indefinitely in the state can get a Senior Sales Tax Exemption Card for a $20 application fee. Those over age 65 may also be eligible for a senior-citizen property tax exemption on the first $150,000 of assessed value. All Alaska residents with at least one year in the state also receive annual Alaska Permanent Fund dividends. The payout was an unusually high $3,269 in 2008, but even more typical dividends have been nothing to scoff at, ranging from $827 to $1,964 over the past two decades. This dividend may be taxed as income on federal tax returns.