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

4. Delaware

Insider Monkey Score: 50    

Combined State Sales Tax Rate: 0.000%    

Average Effective Property Tax Rate: 0.55%          

Tax Friendliness: Tax Friendly

Cost of Living Index: 101.1

Known for its peaceful and relaxed vibe, Delaware is another one of the tax-friendly states to retire to in the US. The state doesn’t tax Social Security retirement benefits and is also one of the states with no sales taxes at the state or local level. The average effective property tax rate is also below the national average, making it quite cost-effective for retirees to live in. Living expenses in the state are also only 1% higher than the national average. According to the Delaware Department of Finance, homeowners aged 65 and above are eligible for a tax credit against regular school taxes of 50% (up to $500). It is important to note that taxpayers “must pay their property tax bill in full by the end of each tax year to qualify for this credit for the subsequent property tax year”.