Mississippi
Mississippi wins against Arkansas when it comes to the average cost of owning a home (which comes up to around $140,000); however, you would have to pay a few dollars extra when it comes to Medicare. This shouldn’t discourage you if you have been thinking about the Magnolia State as a viable option for your retirement, as you will not regret coming here to settle down for your golden years.
As a resident of this state, you will be able to enjoy mild winters while still enjoying all four seasons, and it is cheaper to live here when compared to the national average. What’s more, they are also known to be extremely tax-friendly with their residents, going so far as to be considered one of the most tax-friendly states for retirees.
Mississippi’s tax system makes sure that you will not be taxed for any retirement income that comes from Social Security benefits, 401(k)s, 403(b)s, 457(b)s, all pensions, IRAs, and SEP-IRAs. However, any income that comes from work is going to be taxed according to the state’s income tax rules. They are known to have some low taxes when it comes to properties, as well as moderate sales taxes. If you are worried about potential inheritance or estate taxes, you are in luck! Mississippi does not have either of those taxes!
Do not sleep on this midwestern state, as it may surprise you with how much of a goldmine it can be for retirees!