5 States That Don’t Tax Pension Income in the US

4. South Dakota 

Individual Income Tax Rate: 0%

Statewide Sales Tax Rate: 4.20%

Property Tax Rate: 1.01%

Combined State Sales & Property Tax Rate: 5.21%

South Dakota is another prominent retiree haven with no income taxes and a property tax of just over 1%. Senior citizens with a minimum age of 70 years can benefit from the Homestead Exemption Program, which allows delaying property tax payment until the property is sold, with accrued taxes subject to a 4% annual interest rate. Other requirements to be part of the plan include residing in the state for a minimum of 5 years or owning a house for at least 3 years.