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It also helps if your overall tax burden is less based on where you live out your retirement years.
This can be easier when you live in the right state.
However, here are GOBankingRates five picks for the besttax-friendly states for retirementin 2025.
Wyoming
Wyoming stands out for its overall low tax burden, Jameson said.
It imposes no state income tax,making it an excellent choice for retireesdrawing income from pensions or investments.
The state has no inheritance tax, nor does it have an estate tax.
Previously, the Hall income tax was paid on stock dividends and interest earned on bonds and notes.
Retirees enjoy tax-free Social Security benefits and withdrawals from retirement accounts, she explained.
While property taxes are moderate, the lack of estate and inheritance taxes adds to Nevadas appeal.
Pennsylvania
I would be remiss not to highlight my home state of Pennsylvania, added Jameson.
Caitlyn Moorheadcontributed to the reporting for this article.
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