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

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1. Wyoming

Insider Monkey Score: 62    

Combined State Sales Tax Rate: 5.441%    

Average Effective Property Tax Rate: 0.58%          

Tax Friendliness: Very Tax Friendly          

Cost of Living Index: 92.4

Wyoming is one of the best states to retire in the US financially. Retirees love it for its very tax-friendly status. The state has zero state income tax, which means all retirement income goes tax-free at the state level. The average effective property tax rate is also lower than the national average. The State of Wyoming has a property tax deferral program for seniors, whereby seniors over 62 years of age with limited income and who have purchased the property 10 years before applying for a deferral of taxes can defer up to ½ of property taxes on a qualifying residence. Currently, only Teton County authorizes the program for residents of Teton County.

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