What states do not tax Social Security income?

As of 2025, 41 states plus the District of Columbia do not tax Social Security income. Only nine states currently tax these benefits to some degree, though many offer exemptions or are phasing out the tax entirely.

What state is best to retire to avoid taxes?

What are the best states to retire for taxes on retirement withdrawals? Nine states have no income tax. These are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. An additional 4 states do not tax income from IRAs.

What states have no property tax for seniors?

States that offer property tax exemptions to seniors

• Alabama: Exempts seniors from the state portion of property taxes; county taxes may still apply.
• Alaska: Exempts the first $150,000 of assessed home value for homeowners aged 65-plus.

What state is best for seniors on Social Security?

For retirees living on Social Security, the best states offer low taxes (no state income tax on SS), low cost of living (especially housing), and affordability, with top contenders often including Mississippi, West Virginia, Arkansas, Iowa, Wyoming, and Florida, while states like Pennsylvania, South Dakota, and Tennessee also rank highly for affordability and favorable tax environments, making every dollar stretch further. 

How much do you have to make to get $3,000 a month in social security?

To get around $3,000/month in Social Security, you generally need a high earning history, around $100,000-$108,000+ annually over your top 35 years, but waiting to claim until age 70 maximizes this amount, potentially reaching it with lower yearly earnings, say under $70k if you wait long enough, as benefits are based on your highest indexed earnings over 35 years. The exact amount depends heavily on your specific earnings history and the age you start collecting benefits. 

What States Do Not Tax Social Security Income? - CountyOffice.org

What is one of the biggest mistakes people make regarding social security?

Claiming Benefits Too Early

One of the biggest mistakes people make is claiming Social Security benefits as soon as they're eligible, which is at age 62. While getting money sooner can be tempting, claiming early has a significant downside: your monthly benefit will be reduced.

Where can I retire on $2000 a month in the United States?

You can retire comfortably on $2,000 a month in the U.S. by focusing on affordable Midwest and Southern cities, with top contenders including Fort Wayne, Indiana, Fargo, North Dakota, Knoxville, Tennessee, Oklahoma City, Cincinnati, Ohio, and several locations in Texas (like Brownsville, Abilene) and Florida (like Tallahassee, Fort Myers), which offer lower costs for housing, groceries, and healthcare while still providing good livability and amenities. 

What is the best state to move to avoid taxes?

Last updated: May 2025. As of 2025, nine U.S. states levy no personal income tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming. For high-net-worth individuals, understanding the nuances of these tax structures is crucial for effective financial planning.

What age do seniors stop paying taxes?

In the United States, there is no specific age at which seniors automatically stop paying taxes. However, as you get older, your tax responsibilities can change.

What is the cheapest and happiest state for retirees?

Cheapest States to Retire In

• Mississippi. Cost of Living: Lowest in the U.S. ...
• Alabama. Cost of Living: Significantly lower than the national average. ...
• Arkansas. Cost of Living: Among the lowest in the nation. ...
• Oklahoma. Cost of Living: Lower healthcare and housing costs. ...
• West Virginia. ...
• Tennessee. ...
• South Carolina. ...
• Kentucky.

Is it better to rent or buy in retirement?

Renting vs. buying in retirement involves a trade-off between flexibility/less responsibility (renting) and stability/equity (owning), with renting offering freedom to move and no maintenance worries but rising costs, while owning provides fixed housing costs (if paid off) and potential appreciation but requires upkeep and commitment, making the best choice highly personal, depending on your finances, health, and desired lifestyle. 

How can I avoid Social Security taxes?

How to minimize taxes on your Social Security

1. Move income-generating assets into an IRA. ...
2. Reduce business income. ...
3. Minimize withdrawals from your retirement plans. ...
4. Donate your required minimum distribution. ...
5. Make sure you're taking your maximum capital loss.

What state is best financially to retire to?

The best states for financially sound retirement balance low taxes (especially no state income tax on retirement income) with affordable living, while also considering healthcare and lifestyle, with top contenders often including Florida, Wyoming, Texas, New Hampshire, Tennessee, and South Dakota, though states like Colorado, Virginia, and Delaware also rank highly for varied reasons like good healthcare or low property taxes. Key financial factors are state income, sales, and property taxes, plus potential deductions for retirement income, with states like Florida and Wyoming often praised for tax-friendliness. 

What states are not going to tax Social Security in 2025?

Most States Won't Tax Social Security in 2025

• Alabama.
• Alaska.
• Arizona.
• Arkansas.
• California.
• Delaware.
• Florida.
• Georgia.

Where is the best place to retire to avoid taxes?

1. Panama: The Gold Standard for Tax-Free Retirement. Panama earns the top spot for a reason: it's the only country in the Americas that offers complete tax exemption on foreign income AND uses the U.S. dollar. No exchange rate stress, no tax worries.

What's the worst state for taxes?

Here are the current states with the highest state taxes, including states with the highest top rates or flat rates:

• California (12.3%, with 1% tax on income in excess of $1 million)
• Hawaii (11%)
• New York (10.9%)
• New Jersey (10.75%)
• District of Columbia (10.75%)
• Oregon (9.9%)
• Minnesota (9.85%)

How much an hour is $70,000 a year after taxes?

Quick Answer: $33.65 Per Hour

A $70,000 annual salary equals $33.65 per hour in California before taxes. After federal and state deductions, your take-home pay ranges from $43,500 to $52,000 annually ($3,625-$4,333 monthly).

What is the cheapest but best state to live in?

The best affordable states to live in consistently include Southern and Midwestern options like Mississippi, Alabama, Arkansas, Ohio, Iowa, Kansas, Missouri, Oklahoma, and West Virginia, known for low housing costs, low taxes (sometimes), and lower overall cost of living indexes compared to the national average, though job opportunities and specific amenities vary, with some states offering strong sectors in manufacturing, healthcare, or logistics. 

What is the $27.40 rule?

The $27.40 Rule is a personal finance strategy to save $10,000 in one year by consistently setting aside $27.40 every single day ($27.40 x 365 days = $10,001). It's a simple way to reach a large financial goal by breaking it down into small, manageable daily habits, making saving feel less intimidating and more achievable by cutting small, unnecessary expenses like daily coffees or lunches.
 

Where is the nicest and cheapest place to retire?

1. Fargo, ND. With its low costs and generous tax situation, North Dakota has consistently ranked high among our best states for retirement.

Can you retire at 70 with $400,000?

Typical lifetime payout rates at age 70 are about 5%–8% depending on carrier and terms. On $400,000, that's roughly $20,000–$32,000 per year for life, before Social Security. Favor increasing-income GLWBs when available so your paycheck can step up over time to fight inflation.

What is the number one regret of retirees?

Among the biggest mistakes retirees make is not adjusting their expenses to their new budget in retirement. Those who have worked for many years need to realize that dining out, clothing and entertainment expenses should be reduced because they are no longer earning the same amount of money as they were while working.

What does Dave Ramsey say about Social Security?

Dave Ramsey views Social Security as a supplement, not a primary retirement income, emphasizing that relying on it is a "dumb" idea; he advocates for claiming benefits as early as 62 if you're debt-free to invest the money for potentially higher returns, while also warning about potential future cuts due to trust fund depletion and urging strong reliance on 401(k)s and IRAs. 

What is happening on March 31, 2025 with Social Security?

At the conclusion of the transition period, on March 31, 2025, SSA will enforce online digital identity proofing and in-person identity proofing. SSA will permit individuals who do not or cannot use the agency's online “my Social Security” services to start their claim for benefits on the telephone.