The Retirement Living Information Center provides retirement tax information by state, according to its website. In addition to retirement benefit tax information, it also provides information on sales, personal income, property, and inheritance and estate taxes. Take all types of state taxes into consideration when choosing where to retire.
Retirement benefit taxes vary widely from state to state, but according to the Retirement Living Information Center, seven states do not tax any individual income. These states are Alaska, Florida, Nevada, South Dakota and Texas, as well as Washington and Wyoming. Also, New Hampshire and Tennessee only tax dividends and interest on an individual's income taxes.