What states do not tax SS benefits?

As of 2025, the majority of states—41 plus Washington D.C.—do not tax Social Security benefits. This includes the nine states that have no state income tax at all, as well as many others that specifically exempt Social Security income from taxation.

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 state is best for seniors on Social Security?

9 Best States to Retire

• Alabama. Alabama offers that classic Southern charm and a slower pace of life that appeals to many retirees. ...
• Delaware. ...
• Florida. ...
• Georgia. ...
• Maryland. ...
• New Jersey. ...
• North Carolina. ...
• Pennsylvania.

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 States Do Not Tax Social Security Benefits? - InsuranceGuide360.com

What is the cheapest and happiest state for retirees?

The cheapest and happiest states for retirees often overlap in the Midwest and Southeast, with West Virginia, Mississippi, Kansas, and Oklahoma frequently cited for low costs, while happiness is subjective but linked to affordability and quality of life, with states like New Hampshire (overall best), Delaware, and Utah also scoring high in overall satisfaction or specific senior metrics, making West Virginia a strong contender for both affordability and general satisfaction due to low living costs and senior-friendly factors like healthcare. 

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

You can retire on $2,000 a month in affordable U.S. cities, especially in the **Midwest and <</a>>South, by choosing locations with lower costs for housing, groceries, and healthcare, like Fort Wayne (IN), Knoxville (TN), El Paso (TX), or Cleveland suburbs (OH) . Focus on cities in states like Ohio, Michigan, Indiana, Texas, Tennessee, and North Carolina, where a lower cost of living makes a budget of $2k/month feasible, often with access to good amenities and healthcare. 

At what age do seniors stop paying federal 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. Seniors often have different tax rules than younger taxpayers.

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

One of the biggest mistakes people make with Social Security is claiming benefits too early (at age 62) without understanding the permanent reduction, which significantly lowers their monthly income for life, instead of waiting until their Full Retirement Age (FRA) or even age 70, where benefits grow substantially. Many also fail to consider how their decision impacts spousal or survivor benefits, missing out on thousands of dollars in potential lifetime income. 

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

To get around $3,000 a month in Social Security, you generally need high lifetime earnings, often requiring over $100,000 annually for your 35 highest-earning, inflation-adjusted years, and claiming benefits at your full retirement age (FRA) or waiting until age 70 for the maximum, though some high earners claim earlier for slightly less. The Social Security Administration (SSA) calculates benefits based on your Average Indexed Monthly Earnings (AIME) from your top 35 years, so consistently earning above the wage base cap helps significantly. 

What is the friendliest state for seniors?

Key Takeaways

A new study ranks Hawaii No. 1 and Florida No. 2 as states most prepared for an aging population.

What is the $1000 a month rule for retirement?

The $1,000 a month retirement rule is a guideline suggesting you need $240,000 saved for every $1,000 in monthly income you want from your investments in retirement, based on a 5% annual withdrawal rate (which yields $12,000/year or $1,000/month). Popularized by financial planner Wes Moss, it helps estimate savings goals but doesn't account for inflation, healthcare, or other income like Social Security, making it a useful starting point but needing adjustment for real-life planning. 

What are the worst states to retire in for tax purposes?

Eight of the 10 worst states for retirees are in the Sun Belt, including Alabama, Arkansas, Florida, Louisiana, Oklahoma, California, New Mexico and Texas.

What states have no property tax after 65?

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 is the new $6,000 tax deduction for seniors?

Joint filers over 65 will be able to deduct up to $46,700 from their 2025 return. The standard deduction has been super-sized for seniors. Thanks to provisions in the One Big Beautiful Bill Act, taxpayers 65 and older can claim an additional $6,000 without itemizing their deductions.

What is the $27.40 rule?

The "27.40 rule" is a simple personal finance strategy where you save $27.40 every single day for one year to accumulate approximately $10,000, making wealth-building feel less intimidating by focusing on small, consistent, automated habits rather than huge sacrifices. This method promotes financial discipline by making saving automatic, often through daily or bi-weekly transfers to a high-yield savings account, turning a big goal ($10k) into manageable daily micro-goals.
 

What is the cheapest state to live in for seniors?

The cheapest states for seniors often include Mississippi, Alabama, West Virginia, Tennessee, Kansas, Oklahoma, and Ohio, thanks to low housing costs, affordable healthcare, and favorable taxes (like not taxing Social Security). Mississippi frequently tops lists for its low overall cost of living and minimal taxes on retirement income, while West Virginia leads due to extremely affordable housing. 

Can you retire at 70 with $400,000?

Yes, you can likely retire at 70 with $400,000, but it requires a frugal lifestyle, relying heavily on Social Security and potentially annuities for guaranteed income, as $400k alone provides modest annual income ($16k-$20k initially) before inflation and longevity risks. A personalized plan balancing withdrawals, investments, and expenses (especially housing and healthcare) is crucial for making your savings last, potentially combining with other income sources like a pension or part-time work to create a more comfortable retirement. 

What is the #1 retirement state?

While Florida is frequently ranked as the #1 retirement state for its tax benefits (no income tax), warm weather, and senior-friendly services, other studies place states like New Hampshire, Wyoming, or Nebraska at the top due to factors like overall affordability, healthcare quality, safety, or low taxes, showing the best choice depends on individual priorities like cost, climate, or quality of life. 

Is it better to rent or buy in retirement?

Many financial experts suggest that renting is preferable because it allows you to decide where to invest your money. Also, if funds are tight, renting gives you more disposal capital so you can enjoy a higher quality of life.

What state has the lowest cost of living but high pay?

For the best combination of low living costs and higher pay, states like Texas, Tennessee, Indiana, North Carolina, and Missouri often rank well due to no state income tax or low housing, while West Virginia, Mississippi, and Arkansas offer the absolute cheapest living, though with lower median incomes, making Southern/Midwestern states generally strong contenders for balancing affordability with earning potential.