Top Tax-Friendly U.S. Cities for Retirement Planning in 2024
As you think about the best place to enjoy your retirement, many factors come into play: from living costs and climate to the proximity of family and access to your favorite activities. One crucial aspect often overlooked in retirement planning is taxes. Even if you are not paying income tax, other taxes can significantly impact your retirement funds, making it essential to understand the tax implications of your ideal retirement location.
GOBankingRates conducted research on the 50 largest U.S. cities based on housing market data from Zillow as of December 2024. The study aims to identify the most and least tax-friendly cities for retirees. Whether your retirement is imminent or years away, having insights into how taxes will factor into your finances is vital. Below are the cities ranked from the most tax-friendly to those that may require more financial planning.
1. Philadelphia, Pennsylvania
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $210,087
- Annual property tax estimate by county: $1,912
- Property tax rate: 0.9%
- Sales tax: 8%
also see: How Long $1 Million in Retirement Will Last in Every State
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2. Jacksonville, Florida
- Annual state retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $301,125
- Annual property tax estimate by county: $2,560
- Property tax rate: 0.9%
- Sales tax: 7.5%
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3. Las Vegas, Nevada
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $437,635
- Annual property tax estimate by county: $3,151
- Property tax rate: 0.7%
- Sales tax: 8.4%
4. Orlando, Florida
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $406,483
- Annual property tax estimate by county: $3,821
- Property tax rate: 0.9%
- Sales tax: 6.5%
5. Louisville, Kentucky
- Annual retirement taxes: $383
- Effective retirement tax rate: 0.5%
- Home value: $240,324
- Annual property tax estimate by county: $2,163
- Property tax rate: 0.9%
- Sales tax: 6%
6. Memphis, Tennessee
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $140,178
- Annual property tax estimate by county: $1,934
- Property tax rate: 1.4%
- Sales tax: 9.8%
7. Nashville, Tennessee
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $436,745
- Annual property tax estimate by county: $4,193
- Property tax rate: 1%
- Sales tax: 9.8%
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8. Atlanta, Georgia
Retirement Tax Landscape Across Major U.S. Cities
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $440,612
- Annual property tax estimate by county: $4,759
- Property tax rate: 1.1%
- Sales tax: 8.9%
9. Miami
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $642,609
- Annual property tax estimate by county: $6,555
- Property tax rate: 1%
- Sales tax: 7%
10. Mesa, Arizona
- Annual retirement taxes: $976
- Effective retirement tax rate: 1.3%
- Home value: $446,897
- Annual property tax estimate by county: $2,637
- Property tax rate: 0.6%
- Sales tax: 8.3%
11. Phoenix
- Annual retirement taxes: $976
- Effective retirement tax rate: 1.3%
- Home value: $425,953
- Annual property tax estimate by county: $2,513
- Property tax rate: 0.6%
- Sales tax: 8.6%
12. Chicago
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $300,169
- Annual property tax estimate by county: $4,142
- Property tax rate: 1.4%
- Sales tax: 10.3%
Find out here how much your state collects on every type of tax
13. Cincinnati
- Annual retirement taxes: $442
- Effective retirement tax rate: 0.6%
- Home value: $237,015
- Annual property tax estimate by county: $3,636
- Property tax rate: 1.5%
- Sales tax: 6.5%
14. Tucson, Arizona
- Annual retirement taxes: $976
- Effective retirement tax rate: 1.2%
- Home value: $335,769
- Annual property tax estimate by county: $2,720
- Property tax rate: 0.8%
- Sales tax: 8.7%
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15. El Paso, Texas
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $222,153
- Annual property tax estimate by county: $4,643
- Property tax rate: 2.1%
- Sales tax: 7.3%
16. Seattle
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $914,171
- Annual property tax estimate by county: $8,045
- Property tax rate: 0.9%
- Sales tax: 10.4%
17. Columbus, Ohio
- Annual retirement taxes: $442
- Effective retirement tax rate: 0.6%
- Home value: $253,028
- Annual property tax estimate by county: $4,226
- Property tax rate: 0.7%
- Sales tax: 7.5%
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Fresno, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $387,228
- Annual property tax estimate by county: $2,517
- Property tax rate: 0.7%
- Sales tax: 7.5%
Pittsburgh, Pennsylvania
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $221,573
- Annual property tax estimate by county: $4,919
- Property tax rate: 2.2%
- Sales tax: 7%
Colorado Springs, Colorado
- Annual retirement taxes: $1,678
- Effective retirement tax rate: 2.2%
- Home value: $455,111
- Annual property tax estimate by county: $2,139
- Property tax rate: 0.5%
- Sales tax: 8.2%
San Antonio, Texas
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $255,554
- Annual property tax estimate by county: $5,418
- Property tax rate: 2.1%
- Sales tax: 8.3%
Oklahoma City, Oklahoma
- Annual retirement taxes: $1,468
- Effective retirement tax rate: 1.9%
- Home value: $198,018
- Annual property tax estimate by county: $1,901
- Property tax rate: 1%
- Sales tax: 8.6%
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New York City, New York
- Annual retirement taxes: $1,248
- Effective retirement tax rate: 1.6%
- Home value: $786,397
- Annual property tax estimate by county: $4,797
- Property tax rate: 0.6%
- Sales tax: 8%
Sacramento, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $484,408
- Annual property tax estimate by county: $3,294
- Property tax rate: 0.7%
- Sales tax: 8.8%
Bakersfield, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $386,283
- Annual property tax estimate by county: $3,090
- Property tax rate: 0.8%
- Sales tax: 8.3%
Virginia Beach, Virginia
- Annual retirement taxes: $1,624
- Effective retirement tax rate: 2.1%
- Home value: $408,861
- Annual property tax estimate by county: $3,312
- Property tax rate: 0.8%
- Sales tax: 6%
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Comparing Retirement Taxes Across Major U.S. Cities
27. Denver
- Annual retirement taxes: $1,678
- Effective retirement tax rate: 2.2%
- Home value: $587,101
- Annual property tax estimate by county: $3,170
- Property tax rate: 0.5%
- Sales tax: 9.2%
28. Detroit
- Annual retirement taxes: $1,199
- Effective retirement tax rate: 1.6%
- Home value: $71,089
- Annual property tax estimate by county: $1,472
- Property tax rate: 2.1%
- Sales tax: 6%
29. Houston
- Annual retirement taxes: $0
- Effective retirement tax rate: 0.0%
- Home value: $271,965
- Annual property tax estimate by county: $6,282
- Property tax rate: 2.3%
- Sales tax: 8.3%
30. Indianapolis
- Annual retirement taxes: $1,613
- Effective retirement tax rate: 2.1%
- Home value: $223,801
- Annual property tax estimate by county: $2,574
- Property tax rate: 1.2%
- Sales tax: 7%
31. Dallas
- Annual retirement taxes: $0
- Effective retirement tax rate: 0.0%
- Home value: $321,537
- Annual property tax estimate by county: $7,010
- Property tax rate: 2.2%
- Sales tax: 8.3%
32. Washington, D.C.
- Annual retirement taxes: $2,138
- Effective retirement tax rate: 2.8%
- Home value: $723,556
- Annual property tax estimate by county: $3,328
- Property tax rate: 0.5%
- Sales tax: 6%
33. Kansas City, Missouri
- Annual retirement taxes: $1,450
- Effective retirement tax rate: 1.9%
- Home value: $232,081
- Annual property tax estimate by county: $2,947
- Property tax rate: 1.3%
- Sales tax: 9%
34. Long Beach, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $873,848
- Annual property tax estimate by county: $5,156
- Property tax rate: 0.6%
- Sales tax: 10.3%
35. Fort Worth, Texas
- Annual retirement taxes: $0
- Effective retirement tax rate: 0.0%
- Home value: $300,505
- Annual property tax estimate by county: $7,122
- Property tax rate: 2.4%
- Sales tax: 8.6%
36. Baltimore
- Annual retirement taxes: $1,978
- Effective retirement tax rate: 2.8%
- Home value: $180,051
- Annual property tax estimate by county: $2,071
- Property tax rate: 1.2%
- Sales tax: 6%
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10 States With Low Taxes and Low Living Costs for Retirees
Identifying ideal states for retirement involves examining both tax rates and cost-of-living metrics. Here is a list of states featuring lower taxes and more affordable living conditions, specifically for retirees.
Low Tax States for Retirees
37. Raleigh, North Carolina
- Annual retirement taxes: $1,481
- Effective retirement tax rate: 2.4%
- Median home value: $443,388
- Annual property tax (estimate): $3,591
- Property tax rate: 0.8%
- Sales tax: 7.3%
38. Los Angeles, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Median home value: $989,702
- Annual property tax (estimate): $5,839
- Property tax rate: 0.6%
- Sales tax: 9.5%
39. San Diego, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Median home value: $1,119,226
- Annual property tax (estimate): $6,827
- Property tax rate: 0.6%
- Sales tax: 7.8%
40. San Francisco, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Median home value: $1,353,281
- Annual property tax (estimate): $7,443
- Property tax rate: 0.6%
- Sales tax: 8.6%
41. Charlotte, North Carolina
- Annual retirement taxes: $1,841
- Effective retirement tax rate: 2.4%
- Median home value: $401,024
- Annual property tax (estimate): $4,211
- Property tax rate: 1.1%
- Sales tax: 7.3%
Cost-Effective Living States for Retirement
42. Austin, Texas
- Annual retirement taxes: $0
- Effective retirement tax rate: 0.0%
- Median home value: $548,997
- Annual property tax (estimate): $10,870
- Property tax rate: 2.0%
- Sales tax: 8.3%
43. Boston, Massachusetts
- Annual retirement taxes: $2,247
- Effective retirement tax rate: 2.9%
- Median home value: $785,253
- Annual property tax (estimate): $6,125
- Property tax rate: 0.8%
- Sales tax: 6.3%
44. Albuquerque, New Mexico
- Annual retirement taxes: $2,759
- Effective retirement tax rate: 3.6%
- Median home value: $327,626
- Annual property tax (estimate): $2,654
- Property tax rate: 0.8%
- Sales tax: 7.6%
45. San Jose, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Median home value: $1,463,410
- Annual property tax (estimate): $9,805
- Property tax rate: 0.7%
- Sales tax: 9.4%
46. Buffalo, New York
- Annual retirement taxes: $1,248
- Effective retirement tax rate: 1.6%
For additional insights regarding retirement savings, explore how far $500,000 in retirement savings plus Social Security will go in various states.
Tax-Friendly Cities for Retirees: A Deep Dive into Key Data
- Home value: $219,743
- Annual property tax estimate by county: $5,823
- Property tax rate: 2.7%
- Sales tax: 8.8%
Learn More: The Money You Need To Save Monthly To Retire Comfortably in Every State
Milwaukee, Wisconsin
- Annual retirement taxes: $2,124
- Effective retirement tax rate: 2.8%
- Home value: $195,562
- Annual property tax estimate by county: $4,381
- Property tax rate: 2.2%
- Sales tax: 5.9%
Rochester, New York
- Annual retirement taxes: $1,248
- Effective retirement tax rate: 1.6%
- Home value: $207,750
- Annual property tax estimate by county: $6,066
- Property tax rate: 2.9%
- Sales tax: 8%
Portland, Oregon
- Annual retirement taxes: $3,456
- Effective retirement tax rate: 4.5%
- Home value: $543,024
- Annual property tax estimate by county: $5,376
- Property tax rate: 1%
- Sales tax: 0%
Omaha, Nebraska
- Annual retirement taxes: $3,098
- Effective retirement tax rate: 4%
- Home value: $273,938
- Annual property tax estimate by county: $5,397
- Property tax rate: 2%
- Sales tax: 7%
Travis Woods contributed to the reporting for this article.
Methodology: GOBankingRates analyzed the 50 largest U.S. cities based on housing market data from Zillow, ranking them according to tax friendliness for retirees. Each city’s score was based on five key factors: (1) estimated annual retirement taxes; (2) effective retirement tax rate; (3) average annual property taxes; (4) property tax rate; and (5) city sales tax rate. Estimated retirement taxes were calculated for a single filer turning 65 in 2025, receiving the national average retirement benefits, while factors like the majority of income from retirement accounts were also considered. Data reflects estimates from February 4, 2025.
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This article originally appeared on GOBankingRates.com: The Most and Least Tax-Friendly Cities for Retirees
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