10 Best States to Retire in for Taxes and Cost of Living

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9. Illinois

Tax-friendliness: Tax-friendly

Cost of living: 90.8

Almost all of retirement incomes in Illinois goes untaxed, including social security retirement benefits, retirement saving accounts income, and pension incomes. Property and sales taxes are some of the highest in the US. However, a 9.2% lower-than-national-average cost of living seems to offset its impacts.

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