Retirees can significantly boost their income by understanding which states do not tax Social Security. This information, combined with cost-of-living indexes, facilitates informed decisions about retirement location.
Missouri
Missouri is phasing out taxes on Social Security for many residents. With a low cost of living index of 88.4 and increasing tax friendliness, the state is becoming more attractive to retirees.
Nebraska
Social Security is no longer subject to taxes in Nebraska. With a moderate cost of living of 90.1, its very high tax friendliness and entertainment options attract many retirees.
Nevada
Nevada’s lack of state income tax means untaxed Social Security benefits. Despite a cost of living index of 101.3, its high tax friendliness and entertainment options appeal to many retirees.
New Hampshire
New Hampshire does not tax earned income of Social Security but does tax dividends and interest. Its cost of living index is 115 is offset by high tax friendliness and no sales tax.
New Jersey
New Jersey exempts Social Security from state taxes and offers some exclusions for other retirement income. However, its cost of living index of 114.1 and moderate tax friendliness are impacted by high property taxes.
New York
New York does not tax Social Security and offers deductions for other retirement income. Its high cost of living index of 125.1 and moderate tax friendliness can be challenging for retirees, especially in urban areas.
North Carolina
North Carolina exempts Social Security from state taxes and has a flat income tax rate. With a cost of living index of 96.1 and high tax friendliness, it offers a balance of affordability and amenities.
North Dakota
North Dakota does not tax Social Security and has a low overall tax burden. Its moderate cost of living index of 94.6 and high tax friendliness, combined with outdoor recreation opportunities, appeal to many retirees.
Ohio
Ohio exempts Social Security from state taxes and offers credits for other retirement income. Its moderate cost of living index of 94 and high tax friendliness make it an affordable option for seniors.
Oklahoma
Oklahoma does not tax Social Security and offers deductions for other retirement income. With a low cost of living index of 86 and high tax friendliness, it provides a feasible retirement option.
Oregon
Oregon exempts Social Security from state taxes but has high-income tax rates on other retirement income. The lack of sales tax combined with the beauty of the state balances the higher cost of living index of 115.1.
Pennsylvania
There is no tax on Social Security in Pennsylvania. With a cost of living index of 99 and very high tax friendliness, it is an attractive option for many retirees.
South Carolina
South Carolina does not tax Social Security and offers generous deductions for other retirement income. Its cost of living index of 96.5 and high tax friendliness, plus a warm climate attract many seniors.
South Dakota
South Dakota’s lack of state income tax means untaxed Social Security benefits. Its low cost of living index of 93.8 and very high tax friendliness, combined with outdoor attractions, appeal to many.
Tennessee
Tennessee has no state income tax, leaving Social Security benefits untaxed. Despite higher sales tax, its low cost of living index of 90.4 and very high tax friendliness are liked by many retirees.
Texas
Texas does not have a state income tax, so Social Security remains untaxed. Its cost of living index of 93 and very tax friendliness are attractive, though property taxes should be considered.
Virginia
Virginia exempts Social Security from state taxes and offers some deductions for other retirement income. With a cost of living index of 103.1 and high tax friendliness, it provides a balanced option for retirees.
Washington
Washington’s lack of state income tax means untaxed Social Security benefits. Despite a cost of living index of 115.1, its very high tax friendliness and natural beauty attract many retirees.
Wisconsin
Wisconsin has phased out taxes on Social Security. With a cost of living index of 95, increasing tax friendliness, and the state’s natural beauty, it is becoming more attractive to retirees.
Wyoming
Wyoming has no state income tax, leaving Social Security untaxed. Its low cost of living index of 92.8 and very high tax friendliness makes it appealing to nature-loving retirees.
