Possibly the most tax-friendly state, Alaska has no income tax and doesn't levy a cent on estates, inheritances, or retail sales, though cities and boroughs can impose their own rates, but these average a tiny 1.76%. The property tax rate is slightly in excess of the US average, but this is offset considerably by the oil wealth dividend check permanent residents receive each year. The payment from the Alaska Permanent Fund was a very healthy $992 in 2020.

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The most and least tax-friendly states for retirees