5 States That Do Not Tax Social Security or Retirement Income

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1. Mississippi

Insider Monkey Score: 23

Tax Friendliness: Very Tax Friendly

Cost of Living Index: 86.7

The state of Mississippi is one of the best states to retire on social security owing to its tax-friendliness and low cost of living. All forms of retirement income in the state are exempted from taxation. This includes social security benefits, income from IRAs, pension incomes, and even income from 401(k)s. Not only do seniors enjoy tax-free retirement income at the state level, but also get to stretch their retirement savings from low living costs. The cost of living in this state is 13.3% lower than the national average.

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