5 States That Do Not Tax Social Security or Retirement Income

This article takes a look at the 5 states that do not tax social security or retirement income. If you wish to check out our detailed analysis on social security gaps, investment strategies, and tax-friendly states, you may go to 15 States That Do Not Tax Social Security or Retirement Income.  

5. South Dakota

Insider Monkey Score: 17

Tax Friendliness: Very Tax Friendly

Cost of Living Index: 91.8

South Dakota is a very tax-friendly state with a cost of living that is 8.2% lower than the national average. The state does not have an income tax. Therefore, social security retirement benefits and all sorts of retirement income aren’t taxed at the state level. The state also boasts low sales taxes. However, property taxes are high here.