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Kiplinger: 10 Most Tax-Friendly States for Retirees

1. Alaska

State Income Tax: None

State Sales Tax: None

Estate Tax/Inheritance Tax: None/None

Alaska is a true tax haven for retirees -- if you don't mind the cold weather and you enjoy rugged outdoor beauty. In addition to enjoying no state income tax, Alaska residents benefit from the cold, hard cash of an annual dividend ($1,174 for 2011) from the state's oil reserves that is distributed to every permanent resident who has lived there for at least one year. There is no statewide sales tax. But some localities impose a sales tax, at an average of less than 2%. Alaska real estate taxes and home prices can be high, but homeowners 65 and older are exempt from municipal taxes on the first $150,000 of the assessed value of their home. "Alaskans are consistently the least taxed residents in the nation," according to the Tax Foundation.


More From Kiplinger:
Kiplinger’s State-by-State Guide to Retiree Taxes
10 Things You Must Know About Social Security
12 Smart Year-End Tax Moves for 2012

The opinions expressed are solely those of the author and do not necessarily reflect the views of Comcast.

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