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

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5. Alabama

Tax-friendliness: Tax-friendly

Cost of living: 88.8

Social security retirement benefits are fully exempt from income taxes in Alabama. Property taxes are some of the lowest in the country too, a plus for homeowners in the state. Cost of living is 11.2% lower than the national average, another major draw for retirees. However, sales taxes are high in the state.

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