When you have a fixed income, you want to ensure that you save as much as possible so that your retirement is stress-free. However, when taxes come into the picture, your whole world can turn upside down. Different states offer different taxes. Here are a few things you should know about senior tax breaks for retirees.

States that don’t impose income tax
The best senior tax breaks for retirees is one that doesn’t impose any income tax. Seven states do not tax income. They are Washington, Alaska, South Dakota, Florida, Texas, Nevada, and Wyoming. Dividend and interest income are taxed by New Hampshire and Tennessee. This means that you can freelance or work as a consultant without paying taxes in Tennessee and New Hampshire. However, you should know that they charge taxes through other methods.

• Income tax breaks
  States without income taxes do give senior tax breaks for retirees. For example, most states enable retirees to get tax breaks on their pension income and some or all of Social Security benefits that they receive. Many states provide credit for a part of the pension income. These states include New York, Alabama, Virginia, Colorado, Hawaii, Arkansas, Oklahoma, and Georgia among others.
• Sales tax
  New Hampshire, Delaware, Oregon, and Montana are the only states that do not impose a sales tax. Although Alaska doesn’t have a state sale tax that it imposes, it enables counties to impose sales taxes. These taxes can be as high as 7.5%. The five states that have the lowest sales tax include Alabama, Tennessee, Louisiana, Washington, and Arkansas.
• Property tax
  Housing costs are high and this is why having senior tax breaks for retirees on the property are important. Thankfully, all the states offer some sort of exemption or tax break when it comes to property taxes. If you meet certain income requirements and are over a certain age, then you might have special exemptions. Over forty states give homestead exemptions that enable you to save when it comes to paying taxes.

States that aren’t tax-friendly
Some states might not seem the best for senior tax breaks for retirees. California exempts Social Security but imposes a tax of 13.3% on income that is more than $1 million. Minnesota’s taxes 9.85% of your income when it is more than $160,020. Vermont taxes 8.95% of the income that exceeds $416,650 while also taxing income from Social Security. Other less tax-friendly states for retirees and seniors include Connecticut, Arizona, Idaho, Kansas, Indiana, Nebraska, and Rhode Island.

It can be difficult to determine the best state to retire for everyone because everyone’s circumstances are different. You should take into account how much you earn, the nature of your income, the cash you have, and your home’s value before you make a decision. You can speak to your financial advisor about senior tax breaks for retirees and which state will offer the best value for you.