in our free newsletter.

Thousands benefit from our email every week.

  • Discounts and special offers
  • Subscriber-only articles and interviews
  • Breaking news and trending topics

Already a subscriber?

By signing up, you accept Moneywise's Terms of Use, Subscription Agreement, and Privacy Policy.

Not interested ?

Florida

Let’s get the obvious choice out of the way: The Sunshine State is very hospitable to retirees and their money. The state famously lacks a state income tax, which means you won’t pay any tax on your pension.

Assuming you can stomach the state’s real estate costs and the occasional hurricane, your 401(k) and IRA distributions will go further since Florida doesn’t tax distributions from those plans. And Social Security? No taxes on that, either.

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

Get Started

Nevada

Retiring to the Silver State is a safe bet, since Nevada is another state that doesn’t have income tax, which like Florida means no taxes on pensions, retirement plan distributions or Social Security.

Nevada is home to many of the nation’s top retirement destination towns, with the suburbs outside of Las Vegas offering the tempting combination of warmer temperatures in winter and access to casinos and other entertainment year-round.

Texas

Though recent winter conditions have proven more challenging, you can generally expect to stay warm in the Lone Star State. The tax breaks will warm your heart, too.

Texas doesn’t tax state income. Nor does it tax Social Security, pension income or distributions from retirement plans. Those factors, combined with a general lower cost of living and comparatively lower real estate costs, make Texas an attractive landing spot.

But government money lost to those tax breaks has to come from somewhere, which explains why the state has some of the nation’s highest property tax rates.

Trade your favorite stocks any time

Investing doesn't have to be hard. Robinhood is the only place you can trade stocks, options and ETFs 24 hours a day, 5 days a week, all still commission-free. Start building your portfolio with as little as $1.

Get Started

Tennessee

If it's good enough for Dolly Parton, why not you too?

There's no income tax in this state, which means residents of Tennessee don't pay taxes on their pensions, 401(k)s, IRAs or Social Security benefits. The state also boasts a low cost of living, included low property taxes.

And if you're looking for company in your golden years, Tennessee is also home to a number of retirement communities, which it promotes through the Tennessee Department of Tourist Development.

Bonus: Hawaii

What about that other idyllic landing spot, Hawaii?

Unfortunately, Hawaii doesn't quite make the cut: while Social Security income isn’t taxed in the state, private pensions and retirement plan distributions are.

Of course, there’s a good chance that if you’re even considering Hawaii — with its high cost of living and soaring real estate valuations — you’ve probably determined that you can survive those levies.

Sponsored

Meet Your Retirement Goals Effortlessly

The road to retirement may seem long, but with WiserAdvisor, you can find a trusted partner to guide you every step of the way

WiserAdvisor matches you with vetted financial advisors that offer personalized advice to help you to make the right choices, invest wisely, and secure the retirement you've always dreamed of. Start planning early, and get your retirement mapped out today.

About the Author

Chris Clark

Chris Clark

Freelance Contributor

Chris Clark is freelance contributor with MoneyWise, based in Kansas City, Mo. He has written for numerous publications and spent 18 years as a reporter and editor with The Associated Press.

What to Read Next

Disclaimer

The content provided on Moneywise is information to help users become financially literate. It is neither tax nor legal advice, is not intended to be relied upon as a forecast, research or investment advice, and is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy. Tax, investment and all other decisions should be made, as appropriate, only with guidance from a qualified professional. We make no representation or warranty of any kind, either express or implied, with respect to the data provided, the timeliness thereof, the results to be obtained by the use thereof or any other matter.