5 Most Tax-Friendly States for Retirees: Some with No Property Tax

This article takes a look at the 5 most tax-friendly states for retirees: some with no property tax. If you wish to check out our detailed analysis on You Earned It, You Keep It” Act, you may go to 10 Most Tax-Friendly States for Retirees: Some with No Property Tax.

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5. Mississippi

Insider Monkey Score: 46    

Combined State Sales Tax Rate: 7.062%    

Average Effective Property Tax Rate: 0.76%          

Tax Friendliness: Very Tax Friendly          

Cost of Living Index: 86.3

Mississippi has been the top contender in our list of best states to retire for taxes and cost of living. Offering living expenses that are 13.7% lower than the national average, and boasting zero taxes on retirement income, it surely is an affordable state to retire to for those with smaller nest eggs. Moreover, property taxes in the state are lower than the national average, making it one of the states with the lowest property taxes. According to Redfin, the median sale price of a home in the state is $243,700, which is well below the national median and probably the reason why property taxes are low as well. For seniors, in particular, there is even better news. According to the Mississippi Department of Revenue, seniors who are 65 years or older, who are otherwise eligible for homestead exemption, “are exempt from taxes on the first $75,000 of true value on their home”.