Best States to Retire for Tax Savings in 2026

Top Retirement-Friendly States

Florida — No income tax, no tax on Social Security or pensions

2. Texas — No income tax, no tax on retirement accounts

3. Nevada — No income tax

4. Tennessee — No income tax

5. Alaska — No income tax, pays residents dividends

6. South Dakota — No income tax

7. Pennsylvania — Retirement income fully exempt

8. Illinois — Retirement income fully exempt

9. Mississippi — Social Security exempt

10. Georgia — Retirement income deductions available

What to Watch For

States with no income tax often have higher property or sales taxes. Factor in your expected spending patterns.