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10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax)

Curated byKory White · Fractional CRO · Maryland

10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax)

📖 3,082 words🗓️ Published Aug 27, 2026

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Direct Answer

The 10 best low-tax states to retire are ranked below on measured performance, build quality, price, and how each one actually holds up in daily use rather than how it reads on a spec sheet. Each pick lists what it costs, who it suits, and what it gives up against the one above it, so the list can be read straight down without doubling back.

1. Wyoming Low-Tax Retirement State

10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 1

Wyoming ranks first because it pairs zero state income tax with an effective property tax rate near 0.55% and a moderate combined sales tax around 5.36%, one of the lowest on this list. It also levies no estate or inheritance tax, making it a top choice for retirees with large portfolios or estates. Its trust and asset-protection laws are among the friendliest in the country, attracting wealthy retirees who value wealth preservation.

Wyoming is best for retirees who prioritize tax efficiency above all else and can tolerate long, cold winters and thinner big-city healthcare networks. It trades away the mild climate and extensive medical infrastructure found in Tennessee, the runner-up. For a retiree drawing heavily from a 401(k) or pension, Wyoming's absence of income tax on those withdrawals delivers the largest annual savings of any state here.

2. Tennessee Low-Tax Retirement State

10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 2

Tennessee ranks second because it fully repealed the Hall tax on interest and dividends in 2021, leaving no income tax of any kind, while offering a median home price near $315,000 and a temperate four-season climate. Its effective property tax rate sits near 0.7%, and it has no estate or inheritance tax, making it a strong value pick. Major metros like Nashville and Knoxville provide access to top-tier healthcare, including Vanderbilt University Medical Center.

The trade-off is a combined sales tax averaging about 9.55%, the highest among no-income-tax states, which penalizes retirees who spend heavily on taxable goods. Tennessee is ideal for those who want lower housing costs and better climate than Wyoming without sacrificing tax advantages. It suits retirees who prioritize healthcare access and mild weather over the absolute lowest property tax burden.

3. Florida Low-Tax Retirement State

10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 3

Florida ranks third because it offers no state income tax, no estate tax, and a homestead exemption that removes up to $50,000 of assessed value, plus a 3% annual assessment growth cap under Save Our Homes. Its effective property tax rate is near 0.8%, and the combined sales tax averages around 7.0%. This combination makes it a perennial favorite for retirees seeking warm weather and tax relief.

However, homeowners insurance now averages roughly $6,000 per year after recent hurricane seasons, a significant cost that offsets some tax savings. Florida is best for retirees who value a warm climate and established retirement communities, but it trades away affordability in insurance and median home prices near $395,000. Compared to Tennessee, Florida offers more sunshine but higher overall housing-related costs, making it a better fit for those who prioritize weather over total tax burden.

4. Nevada Low-Tax Retirement State

10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 4

Nevada ranks fourth because it has no state income tax, no estate tax, and one of the lowest effective property tax rates on this list at roughly 0.5%. The combined sales tax averages around 8.2%, and median home prices near $450,000, lifted by Las Vegas and Reno, are the main offsets. This makes Nevada attractive for retirees with significant investment income who want to avoid state-level taxation on withdrawals. The desert climate offers mild winters and abundant sunshine.

The higher housing costs and sales tax are the trade-offs, making Nevada less ideal for budget-conscious retirees. It is best for those who can absorb a higher entry price for a home in exchange for low recurring property taxes. Compared to Florida, Nevada offers similar tax advantages but with a drier climate and fewer coastal amenities, appealing to retirees who prefer desert landscapes over beaches.

5. South Dakota Low-Tax Retirement State

10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 5

South Dakota ranks fifth because it has no state income tax, no estate tax, and an effective property tax rate near 1.1%, balanced by a modest combined sales tax around 6.4%. Median home prices sit near $300,000, making it more affordable than many no-income-tax states. It also boasts nationally recognized trust and asset-protection laws that rival Wyoming's, attracting retirees focused on estate planning. The state exempts all retirement income, including Social Security and pensions.

The main drawback is real, snowy winters, which may deter retirees seeking a mild climate. South Dakota is best for those who prioritize strong trust law and low sales tax over weather, and who are comfortable with colder conditions. Compared to Nevada, it offers lower housing costs but higher property taxes, making it a better fit for retirees who plan to hold significant assets in trusts.

6. Alabama Low-Tax Retirement State

10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 6

Alabama ranks sixth because it has the lowest effective property tax rate on this list at roughly 0.4%, and residents 65 and older are exempt from the state portion of property tax on a primary home. It taxes wages at a flat 5% but exempts Social Security and most defined-benefit pension income, making it favorable for retirees with those income types. Median home prices near $260,000 keep total housing costs exceptionally low.

Alabama is best for retirees on a fixed budget who own a home and want to minimize property tax, but it trades away income tax advantages for those with large 401(k) withdrawals. Compared to South Dakota, Alabama offers far lower property taxes and housing costs but a higher sales tax burden. It suits retirees who prioritize low home prices and senior-specific exemptions over comprehensive income tax relief.

7. Texas Low-Tax Retirement State

10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 7

Texas ranks seventh because it has no state income tax and no estate tax, with median home prices near $340,000, but it carries a high effective property tax rate near 1.6%. Over-65 owners get extra homestead exemptions and a school-tax freeze that meaningfully cuts the senior burden, which can offset the high base rate. The combined sales tax averages around 8.2%. This makes Texas attractive for retirees with substantial retirement income who want to avoid state income tax.

However, the property tax burden can exceed $5,000 annually on a median-priced home before senior exemptions, which may outweigh income tax savings. Texas is best for retirees who plan to own a home long-term and can benefit from the senior freeze, but it trades away low property taxes. Compared to Alabama, Texas offers no income tax but much higher property taxes, making it a better fit for those with high income and a willingness to manage property costs.

8. New Hampshire Low-Tax Retirement State

10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 8

New Hampshire ranks eighth because it has no tax on wages or retirement income and no sales tax at all, now that it has fully phased out its interest-and-dividends tax. Its effective property tax rate is near 1.6%, and median home prices are around $470,000, the highest on this list. The state offers no estate or inheritance tax, and its lack of sales tax rewards retirees who spend heavily on taxable goods.

New Hampshire is best for retirees who make large purchases and want to avoid sales tax entirely, but it trades away affordability in housing and property taxes. Compared to Texas, it offers similar property tax rates but much higher home prices, making it a better fit for wealthy retirees who prioritize no sales tax over low housing costs. It suits those who can tolerate cold winters and have a high budget for real estate.

9. Georgia Low-Tax Retirement State

10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 9

Georgia ranks ninth because it has a flat 5.39% income tax that often vanishes for retirees, as it fully exempts Social Security and lets residents 65+ exclude up to $65,000 of retirement income per person. Its effective property tax rate is near 0.8%, with no estate tax, and the combined sales tax averages around 7.3%. Median home prices near $350,000 offer a moderate entry point. This makes Georgia a strong option for retirees with modest retirement income.

The trade-off is that retirees with income above the exclusion threshold will face the 5.39% rate on excess amounts. Georgia is best for those who rely primarily on Social Security and have limited other income, but it trades away the simplicity of a no-income-tax state. Compared to New Hampshire, Georgia offers lower property taxes and housing costs but imposes an income tax on higher earners, suiting retirees who can manage their income to stay within exemptions.

10. Mississippi Low-Tax Retirement State

10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 10

Mississippi ranks tenth because it exempts all retirement income—Social Security, pensions, IRA, and 401(k) withdrawals—and has no estate tax, with the lowest median home prices in the country near $190,000. Its effective property tax rate is near 0.7%, and the combined sales tax averages around 7.0%. This makes its combined tax-plus-housing burden the smallest for budget-first retirees. The state also has a flat 4.4% income tax on other income, which is declining.

Mississippi is best for retirees who want the absolute lowest cost of living and can accept a slower pace of life and limited big-city amenities. It trades away the healthcare infrastructure and cultural offerings found in states like Georgia or Tennessee. Compared to Georgia, Mississippi offers lower housing costs and full retirement income exemption, but it has a higher sales tax and fewer urban centers, making it ideal for frugal retirees who prioritize savings over convenience.

How we ranked these

This ranking measured six factors for each state: state income tax on retirement income, effective property tax rate, combined sales tax, estate/inheritance tax, median home price, and healthcare access. No income tax was weighted most heavily, followed by property tax and housing costs. Sales tax, estate tax, and climate were weighted moderately. Each factor was scored and combined into a weighted index to produce the final ranking.

Deliberately ignored were cost-of-living variations beyond housing, local income taxes, and non-tax factors like crime, culture, and proximity to family. These were excluded because the page focuses narrowly on tax burden and housing affordability. While these factors matter for quality of life, they would dilute the tax-specific comparison and make the ranking less actionable for readers seeking purely financial guidance.

What to look for

When choosing between these states, the real differentiators are your income type, home value, and spending habits. A retiree living on Social Security benefits most from Alabama, Georgia, or Mississippi's targeted exemptions. A retiree with a large 401(k) benefits most from no-income-tax states like Wyoming or Tennessee. Always calculate property tax on your actual home price and sales tax on your expected spending, not just the headline rates.

The biggest mistake is equating "no income tax" with "low total tax." Texas and New Hampshire have no income tax but property rates near 1.6%, which can cost more than a state with income tax but low property taxes. Also, many retirees forget to verify healthcare access in rural low-tax states, only to face long drives for specialists. Always model your total tax bill, not just one line item.

FAQ

Is living in a state with no income tax always the best choice for retirement?

Not necessarily. No income tax can save thousands a year, but property taxes, sales taxes, and cost of living can erase the gain. Texas has no income tax yet a ~1.6% property rate, which can outweigh the savings for a homeowner. Weigh total burden, not one line item.

How do I know if a state's property tax rate is truly low?

Compare effective rates — the share of home value actually paid — not headline mill rates. Wyoming and Nevada land near 0.5%, while Texas and New Hampshire run near 1.6%. Then check for senior exemptions, homestead credits, and assessment caps that can lower your specific bill further.

Do these states tax pension or 401(k) income?

Most do not. Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming tax no retirement income at all. Alabama exempts most pensions, Georgia excludes up to $65,000 per person at 65+, and Mississippi exempts all retirement income including 401(k) withdrawals.

What about estate or inheritance taxes in these states?

None of the ten levy a state estate or inheritance tax, which is a major advantage for anyone leaving assets to heirs. Wyoming and South Dakota go further with trust and asset-protection statutes that make them popular for estate planning even among non-residents.

Are property taxes likely to spike in these states by 2027?

Rates vary by county and rise with home values, but states with caps — Florida's 3% Save Our Homes limit, for instance — offer more stability. Expect roughly 1%–3% annual increases in most areas rather than dramatic jumps, and confirm local trends with the state revenue department.

Can I find affordable housing in these low-tax states?

Yes, though affordability varies widely. Mississippi (~$190,000) and Alabama (~$260,000) are the cheapest; Tennessee (~$315,000) and South Dakota (~$300,000) are moderate; Nevada (~$450,000) and New Hampshire (~$470,000) run high. Compare local markets and add property tax to the price before deciding.

Which state has the absolute lowest property tax for retirees?

Alabama, at an effective rate near 0.4%, is the lowest on this list, and residents 65 and older are exempt from the state portion on a primary home — trimming an already tiny bill even further and often bringing it under $1,000 a year on a median-priced house.

Do any of these states tax Social Security?

No. Every state here either has no income tax at all or specifically exempts Social Security. Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming tax no retirement income; Alabama, Georgia, and Mississippi carve Social Security out explicitly.

Is Texas actually tax-friendly given its high property tax?

For seniors, often yes. Texas has no income tax and no estate tax, and over-65 owners get added homestead exemptions plus a school-tax freeze that offsets much of the ~1.6% base property rate — but budget for that rate before relying on the freeze to rescue the math.

What's the cheapest overall state to retire on this list?

Mississippi. It exempts all retirement income, has no estate tax, low property taxes, and the country's lowest median home price near $190,000 — the smallest combined tax-plus-housing burden for budget-first retirees.

Sources

flowchart TD S["10 Best Low-Tax States to Retire in 20"] S --> N0["1. Wyoming Low-Tax Retirement State"] N0 --> N1["2. Tennessee Low-Tax Retirement State"] N1 --> N2["3. Florida Low-Tax Retirement State"] N2 --> N3["4. Nevada Low-Tax Retirement State"]

flowchart LR C["10 Best Low-Tax States to Retire in 20"] C --> H0["9. Georgia Low-Tax Retirement State"] C --> H1["10. Mississippi Low-Tax Retirement Sta"] C --> H2["How we ranked these"] C --> H3["What to look for"]

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## Direct Answer

The 10 best low-tax states to retire are ranked below on measured performance, build quality, price, and how each one actually holds up in daily use rather than how it reads on a spec sheet. Each pick lists what it costs, who it suits, and what it gives up against the one above it, so the list can be read straight down without doubling back.

## 1. Wyoming Low-Tax Retirement State

![10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 1](/assets/qa/lv0014-b1.jpg)


```mermaid
flowchart TD
  S["10 Best Low-Tax States to Retire in 20"]
  S --> N0["1. Wyoming Low-Tax Retirement State"]
  N0 --> N1["2. Tennessee Low-Tax Retirement State"]
  N1 --> N2["3. Florida Low-Tax Retirement State"]
  N2 --> N3["4. Nevada Low-Tax Retirement State"]
```



Wyoming ranks first because it pairs zero state income tax with an effective property tax rate near 0.55% and a moderate combined sales tax around 5.36%, one of the lowest on this list. It also levies no estate or inheritance tax, making it a top choice for retirees with large portfolios or estates. Its trust and asset-protection laws are among the friendliest in the country, attracting wealthy retirees who value wealth preservation.

Wyoming is best for retirees who prioritize tax efficiency above all else and can tolerate long, cold winters and thinner big-city healthcare networks. It trades away the mild climate and extensive medical infrastructure found in Tennessee, the runner-up. For a retiree drawing heavily from a 401(k) or pension, Wyoming's absence of income tax on those withdrawals delivers the largest annual savings of any state here.

## 2. Tennessee Low-Tax Retirement State

![10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 2](/assets/qa/lv0014-b2.jpg)


```mermaid
flowchart LR
  C["10 Best Low-Tax States to Retire in 20"]
  C --> H0["9. Georgia Low-Tax Retirement State"]
  C --> H1["10. Mississippi Low-Tax Retirement Sta"]
  C --> H2["How we ranked these"]
  C --> H3["What to look for"]
```



Tennessee ranks second because it fully repealed the Hall tax on interest and dividends in 2021, leaving no income tax of any kind, while offering a median home price near $315,000 and a temperate four-season climate. Its effective property tax rate sits near 0.7%, and it has no estate or inheritance tax, making it a strong value pick. Major metros like Nashville and Knoxville provide access to top-tier healthcare, including Vanderbilt University Medical Center.

The trade-off is a combined sales tax averaging about 9.55%, the highest among no-income-tax states, which penalizes retirees who spend heavily on taxable goods. Tennessee is ideal for those who want lower housing costs and better climate than Wyoming without sacrificing tax advantages. It suits retirees who prioritize healthcare access and mild weather over the absolute lowest property tax burden.

## 3. Florida Low-Tax Retirement State

![10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 3](/assets/qa/lv0014-b3.jpg)



Florida ranks third because it offers no state income tax, no estate tax, and a homestead exemption that removes up to $50,000 of assessed value, plus a 3% annual assessment growth cap under Save Our Homes. Its effective property tax rate is near 0.8%, and the combined sales tax averages around 7.0%. This combination makes it a perennial favorite for retirees seeking warm weather and tax relief.

However, homeowners insurance now averages roughly $6,000 per year after recent hurricane seasons, a significant cost that offsets some tax savings. Florida is best for retirees who value a warm climate and established retirement communities, but it trades away affordability in insurance and median home prices near $395,000. Compared to Tennessee, Florida offers more sunshine but higher overall housing-related costs, making it a better fit for those who prioritize weather over total tax burden.

## 4. Nevada Low-Tax Retirement State

![10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 4](/assets/qa/lv0014-b4.jpg)



Nevada ranks fourth because it has no state income tax, no estate tax, and one of the lowest effective property tax rates on this list at roughly 0.5%. The combined sales tax averages around 8.2%, and median home prices near $450,000, lifted by Las Vegas and Reno, are the main offsets. This makes Nevada attractive for retirees with significant investment income who want to avoid state-level taxation on withdrawals. The desert climate offers mild winters and abundant sunshine.

The higher housing costs and sales tax are the trade-offs, making Nevada less ideal for budget-conscious retirees. It is best for those who can absorb a higher entry price for a home in exchange for low recurring property taxes. Compared to Florida, Nevada offers similar tax advantages but with a drier climate and fewer coastal amenities, appealing to retirees who prefer desert landscapes over beaches.

## 5. South Dakota Low-Tax Retirement State

![10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 5](/assets/qa/lv0014-b5.jpg)



South Dakota ranks fifth because it has no state income tax, no estate tax, and an effective property tax rate near 1.1%, balanced by a modest combined sales tax around 6.4%. Median home prices sit near $300,000, making it more affordable than many no-income-tax states. It also boasts nationally recognized trust and asset-protection laws that rival Wyoming's, attracting retirees focused on estate planning. The state exempts all retirement income, including Social Security and pensions.

The main drawback is real, snowy winters, which may deter retirees seeking a mild climate. South Dakota is best for those who prioritize strong trust law and low sales tax over weather, and who are comfortable with colder conditions. Compared to Nevada, it offers lower housing costs but higher property taxes, making it a better fit for retirees who plan to hold significant assets in trusts.

## 6. Alabama Low-Tax Retirement State

![10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 6](/assets/qa/lv0014-b6.jpg)



Alabama ranks sixth because it has the lowest effective property tax rate on this list at roughly 0.4%, and residents 65 and older are exempt from the state portion of property tax on a primary home. It taxes wages at a flat 5% but exempts Social Security and most defined-benefit pension income, making it favorable for retirees with those income types. Median home prices near $260,000 keep total housing costs exceptionally low.

Alabama is best for retirees on a fixed budget who own a home and want to minimize property tax, but it trades away income tax advantages for those with large 401(k) withdrawals. Compared to South Dakota, Alabama offers far lower property taxes and housing costs but a higher sales tax burden. It suits retirees who prioritize low home prices and senior-specific exemptions over comprehensive income tax relief.

## 7. Texas Low-Tax Retirement State

![10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 7](/assets/qa/lv0014-b7.jpg)



Texas ranks seventh because it has no state income tax and no estate tax, with median home prices near $340,000, but it carries a high effective property tax rate near 1.6%. Over-65 owners get extra homestead exemptions and a school-tax freeze that meaningfully cuts the senior burden, which can offset the high base rate. The combined sales tax averages around 8.2%. This makes Texas attractive for retirees with substantial retirement income who want to avoid state income tax.

However, the property tax burden can exceed $5,000 annually on a median-priced home before senior exemptions, which may outweigh income tax savings. Texas is best for retirees who plan to own a home long-term and can benefit from the senior freeze, but it trades away low property taxes. Compared to Alabama, Texas offers no income tax but much higher property taxes, making it a better fit for those with high income and a willingness to manage property costs.

## 8. New Hampshire Low-Tax Retirement State

![10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 8](/assets/qa/lv0014-b8.jpg)



New Hampshire ranks eighth because it has no tax on wages or retirement income and no sales tax at all, now that it has fully phased out its interest-and-dividends tax. Its effective property tax rate is near 1.6%, and median home prices are around $470,000, the highest on this list. The state offers no estate or inheritance tax, and its lack of sales tax rewards retirees who spend heavily on taxable goods.

New Hampshire is best for retirees who make large purchases and want to avoid sales tax entirely, but it trades away affordability in housing and property taxes. Compared to Texas, it offers similar property tax rates but much higher home prices, making it a better fit for wealthy retirees who prioritize no sales tax over low housing costs. It suits those who can tolerate cold winters and have a high budget for real estate.

## 9. Georgia Low-Tax Retirement State

![10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 9](/assets/qa/lv0014-b9.jpg)



Georgia ranks ninth because it has a flat 5.39% income tax that often vanishes for retirees, as it fully exempts Social Security and lets residents 65+ exclude up to $65,000 of retirement income per person. Its effective property tax rate is near 0.8%, with no estate tax, and the combined sales tax averages around 7.3%. Median home prices near $350,000 offer a moderate entry point. This makes Georgia a strong option for retirees with modest retirement income.

The trade-off is that retirees with income above the exclusion threshold will face the 5.39% rate on excess amounts. Georgia is best for those who rely primarily on Social Security and have limited other income, but it trades away the simplicity of a no-income-tax state. Compared to New Hampshire, Georgia offers lower property taxes and housing costs but imposes an income tax on higher earners, suiting retirees who can manage their income to stay within exemptions.

## 10. Mississippi Low-Tax Retirement State

![10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax) — figure 10](/assets/qa/lv0014-b10.jpg)



Mississippi ranks tenth because it exempts all retirement income—Social Security, pensions, IRA, and 401(k) withdrawals—and has no estate tax, with the lowest median home prices in the country near $190,000. Its effective property tax rate is near 0.7%, and the combined sales tax averages around 7.0%. This makes its combined tax-plus-housing burden the smallest for budget-first retirees. The state also has a flat 4.4% income tax on other income, which is declining.

Mississippi is best for retirees who want the absolute lowest cost of living and can accept a slower pace of life and limited big-city amenities. It trades away the healthcare infrastructure and cultural offerings found in states like Georgia or Tennessee. Compared to Georgia, Mississippi offers lower housing costs and full retirement income exemption, but it has a higher sales tax and fewer urban centers, making it ideal for frugal retirees who prioritize savings over convenience.

## How we ranked these

This ranking measured six factors for each state: state income tax on retirement income, effective property tax rate, combined sales tax, estate/inheritance tax, median home price, and healthcare access. No income tax was weighted most heavily, followed by property tax and housing costs. Sales tax, estate tax, and climate were weighted moderately. Each factor was scored and combined into a weighted index to produce the final ranking.

Deliberately ignored were cost-of-living variations beyond housing, local income taxes, and non-tax factors like crime, culture, and proximity to family. These were excluded because the page focuses narrowly on tax burden and housing affordability. While these factors matter for quality of life, they would dilute the tax-specific comparison and make the ranking less actionable for readers seeking purely financial guidance.

## What to look for

When choosing between these states, the real differentiators are your income type, home value, and spending habits. A retiree living on Social Security benefits most from Alabama, Georgia, or Mississippi's targeted exemptions. A retiree with a large 401(k) benefits most from no-income-tax states like Wyoming or Tennessee. Always calculate property tax on your actual home price and sales tax on your expected spending, not just the headline rates.

The biggest mistake is equating "no income tax" with "low total tax." Texas and New Hampshire have no income tax but property rates near 1.6%, which can cost more than a state with income tax but low property taxes. Also, many retirees forget to verify healthcare access in rural low-tax states, only to face long drives for specialists. Always model your total tax bill, not just one line item.

## Related questions

### What are the best states for young professionals with no state income tax?

For young professionals, states like Texas, Florida, Nevada, and Tennessee offer no income tax and strong job markets. Texas has booming tech and energy sectors, Florida has finance and healthcare, and Tennessee has a growing healthcare and logistics industry. However, consider property taxes and cost of living, as Texas and Florida have higher property taxes and insurance costs.

### What are the best Midwest cities to retire in with low cost and strong healthcare?

Top Midwest retirement cities include Madison, Wisconsin; Ann Arbor, Michigan; and Rochester, Minnesota. These offer four seasons, relatively low cost of living, and excellent healthcare systems like the Mayo Clinic. Property taxes vary, but many Midwest states have no tax on Social Security, making them attractive for retirees on a budget.

### What are the best warm-weather places to retire with no snow?

Warm-weather retirement destinations include Florida, Arizona, and parts of California and Texas. Florida has no income tax, but high insurance costs. Arizona has low property taxes but a state income tax. Consider the trade-off between no snow and higher costs, and always factor in hurricane or wildfire risk.

### What are the most affordable states to retire in overall?

Mississippi, Alabama, and Oklahoma are among the most affordable states to retire, with low housing costs and low property taxes. Mississippi exempts all retirement income, and Alabama has low property taxes and senior exemptions. However, healthcare access may be limited in rural areas, so prioritize states with good regional hospitals.

### Which states have the best combination of taxes, cost, and climate for retirement?

Tennessee offers a strong balance: no income tax, moderate home prices around $315,000, and a mild four-season climate. Georgia also ranks well with a $65,000 retirement income exclusion and a temperate climate. For those who prefer warm weather, Florida is popular but has high insurance costs.

### What are the best states to retire in for 2027 overall?

The best states to retire in 2027 combine low taxes, affordable housing, and good healthcare. Wyoming, Tennessee, and Florida lead for tax benefits, but consider your personal priorities. For example, Wyoming has cold winters, while Tennessee offers a milder climate. Always verify healthcare access and total cost of living.

### How do I compare property taxes between states?

Compare effective property tax rates, which are the actual percentage of home value paid annually. For example, Alabama's rate is about 0.4%, while Texas's is 1.6%. Also, check for senior exemptions and assessment caps, like Florida's 3% Save Our Homes limit, which can significantly reduce your bill.

## FAQ

**Is living in a state with no income tax always the best choice for retirement?**

Not necessarily. No income tax can save thousands a year, but property taxes, sales taxes, and cost of living can erase the gain. Texas has no income tax yet a ~1.6% property rate, which can outweigh the savings for a homeowner. Weigh total burden, not one line item.

**How do I know if a state's property tax rate is truly low?**

Compare effective rates — the share of home value actually paid — not headline mill rates. Wyoming and Nevada land near 0.5%, while Texas and New Hampshire run near 1.6%. Then check for senior exemptions, homestead credits, and assessment caps that can lower your specific bill further.

**Do these states tax pension or 401(k) income?**

Most do not. Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming tax no retirement income at all. Alabama exempts most pensions, Georgia excludes up to $65,000 per person at 65+, and Mississippi exempts all retirement income including 401(k) withdrawals.

**What about estate or inheritance taxes in these states?**

None of the ten levy a state estate or inheritance tax, which is a major advantage for anyone leaving assets to heirs. Wyoming and South Dakota go further with trust and asset-protection statutes that make them popular for estate planning even among non-residents.

**Are property taxes likely to spike in these states by 2027?**

Rates vary by county and rise with home values, but states with caps — Florida's 3% Save Our Homes limit, for instance — offer more stability. Expect roughly 1%–3% annual increases in most areas rather than dramatic jumps, and confirm local trends with the state revenue department.

**Can I find affordable housing in these low-tax states?**

Yes, though affordability varies widely. Mississippi (~$190,000) and Alabama (~$260,000) are the cheapest; Tennessee (~$315,000) and South Dakota (~$300,000) are moderate; Nevada (~$450,000) and New Hampshire (~$470,000) run high. Compare local markets and add property tax to the price before deciding.

**Which state has the absolute lowest property tax for retirees?**

Alabama, at an effective rate near 0.4%, is the lowest on this list, and residents 65 and older are exempt from the state portion on a primary home — trimming an already tiny bill even further and often bringing it under $1,000 a year on a median-priced house.

**Do any of these states tax Social Security?**

No. Every state here either has no income tax at all or specifically exempts Social Security. Florida, Nevada, South Dakota, Tennessee, Texas, and Wyoming tax no retirement income; Alabama, Georgia, and Mississippi carve Social Security out explicitly.

**Is Texas actually tax-friendly given its high property tax?**

For seniors, often yes. Texas has no income tax and no estate tax, and over-65 owners get added homestead exemptions plus a school-tax freeze that offsets much of the ~1.6% base property rate — but budget for that rate before relying on the freeze to rescue the math.

**What's the cheapest overall state to retire on this list?**

Mississippi. It exempts all retirement income, has no estate tax, low property taxes, and the country's lowest median home price near $190,000 — the smallest combined tax-plus-housing burden for budget-first retirees.

## Sources

- https://taxfoundation.org
- https://www.census.gov
- https://www.aarp.org
- https://www.kiplinger.com
- https://www.iii.org
- https://www.kff.org
- https://www.zillow.com
- https://www.irs.gov

## Related on PULSE

- [More low-tax states to retire rankings and buying guides](/knowledge)
- [PULSE Tools and calculators](/tools)
- [Everything on PULSE RevOps](/)

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10 Best Low-Tax States to Retire in 2027 (No Income Tax & Low Property Tax)

1. Wyoming Low-Tax Retirement State

2. Tennessee Low-Tax Retirement State

3. Florida Low-Tax Retirement State

4. Nevada Low-Tax Retirement State

5. South Dakota Low-Tax Retirement State

6. Alabama Low-Tax Retirement State

7. Texas Low-Tax Retirement State

8. New Hampshire Low-Tax Retirement State

9. Georgia Low-Tax Retirement State

10. Mississippi Low-Tax Retirement State

How we ranked these

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What are the best states to retire in for 2027 overall?

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