5 States That Don’t Tax Retirement Income

2. Mississippi

Insider Monkey Score: 44

Cost of Living Index: 86.3    

Tax-Friendliness: Very Tax-Friendly

Statewide Sales Tax Rate: 7%

Average Local Tax Rate: 0.062%    

Average Property Tax Rate: 0.75%

Mississippi offers a tax haven for retirees with its exemption of all retirement income from taxation. Enjoy warm winters and a cost of living 13.7% below the national average. With low property taxes and moderate sales tax, it’s financially favorable. Seniors can also benefit from a homestead exemption.