Friendly States for Senior Tax Breaks for Retirees
Senior tax breaks for retirees can enable you to save taxes. While some states are quite tax-friendly, the others may impose hefty taxes on retirees. When you have to live with a fixed income, consider looking for places that are easy with taxes so that you can enjoy your golden years. Here is a round-up of the best states for tax breaks for retirees. Wyoming Wyoming is one of the best places for retirees because there is no income tax and the average state tax is just above 5%. There are no inheritance or estate taxes with low state taxes. The average property tax in Wyoming is about $635 for a property that is worth $100,000. Wyoming ensures that seniors get refunds for their property taxes if they meet certain income requirements. Arizona Arizona imposes a state income tax that is relatively lower. Moreover, it has a state and local sales tax of 8%. There are no estate or inheritance taxes that are imposed. It doesn’t impose taxes on Social Security benefits as well. In addition, it exempts up to $2,500 of your income from retirement plans. Lastly, some portion of the income from military retirement is exempted, too. Tennessee Tennessee does not have an estate tax or inheritance tax.