Pennsylvania

While you may have heard of the fact that Independence State has a flat tax rate of 3.07%, it is a different story when we stop to look at retirement distributions. Pennsylvania is actually considered a very tax-friendly state when it comes to retirees, as they exempt retirement income from income tax as long as the plan requirements are met. They fully exempt any income that comes from Social Security benefits, IRAs, and 401(k)s. However, in order for your pension to be exempt as well, seniors will have to have turned 60 years old.

Like in Nevada, you should keep an eye on certain taxes, as Pennsylvania has a higher-than-average tax on property. Despite the hits, they make it up when it comes to sales taxes, as they are in the top 20 states with the lowest sales tax in the country!