5 States That Don’t Tax Retirement Income

This article takes a look at the 5 states that don’t tax retirement income. If you wish to check out our detailed analysis on navigating retirement taxes, you may go 13 States That Don’t Tax Retirement Income.

5. Nevada

Insider Monkey Score: 35

Cost of Living Index: 101     

Tax-Friendliness: Very Tax-Friendly          

Statewide Sales Tax Rate: 6.85%

Average Local Tax Rate: 1.386%    

Average Property Tax Rate: 0.48%

Nevada’s lack of state income tax means retirees can enjoy their retirement income tax-free. With its sunny climate and cost of living near the national average, Nevada offers an appealing retirement destination. Property taxes are low, though sales tax is higher than average. Despite this, retirees find their dollars stretch further here, and it’s even feasible to retire solely on social security. Notably, Nevada boasts one of the lowest average retirement ages in the US, at 63 years.