10 Best States to Retire in for Taxes and Cost of Living

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6. Arkansas

Tax-friendliness: Tax-friendly

Cost of living: 90.3

Arkansas also provides a good mix of affordable living and tax-friendly environment to retirees. Cost of living is 9.7% lower than the national average, with no taxes on social security benefits. Public and private pension incomes are partially taxed in the state. Moreover, while property taxes are low, sales taxes are quite high here.

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