5 Most Tax-Friendly States for Retirees: Some with No Property Tax

2. Nevada

Insider Monkey Score: 53    

Combined State Sales Tax Rate: 8.236%    

Average Effective Property Tax Rate: 0.50%          

Tax Friendliness: Very Tax Friendly          

Cost of Living Index: 101

Number two on our list of most tax-friendly states is Nevada. The state of Nevada is considered “very tax-friendly” for retirees, considering there is no state income tax here. All retirement income goes tax-free at the state level. This is complemented by its affordable cost of living, which is only an estimated 1% higher than the national average. Sales taxes are higher than the national average, but property taxes are low. The state of Nevada doesn’t offer general property tax exemptions for seniors. However, there are other exemptions available such as a veteran’s exemption, and blind’s exemption, to name a few.