Your ability to retire in style depends as much on your location as the size of your nest egg.
A trio of states offers a unique combination of benefits that help retirees stretch their savings and sail through tax season, leaving more of their income to finance the lives and lifestyles they imagined during all those years of planning.
If you’re retired or soon will be, consider the following three states, each of which offers unique and valuable moving incentives tailored to your age group.
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Alaska
A regulation called AS 29.45.030(e) provides a mandatory exemption on up to $150,000 of the assessed value for the primary residence of seniors aged 65 years and older. The law also applies to qualifying disabled veterans. Additionally, municipalities have the option of increasing the exemption for seniors and disabled vets beyond the first $150,000.
Further sweetening the pot, Alaska does not have an individual income tax, an estate tax, an inheritance tax or a state sales tax, although localities can charge their own sales taxes. All in all, Alaska ranks No. 4 overall in the Tax Foundation’s 2026 State Tax Competitiveness Index.
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Mississippi
Mississippi is one of the most tax-friendly states for retirement in 2025 — and the situation will get even better in 2026.
Next year, the state’s current 4.4% flat income tax rate for those earning at least $10,000 will drop to just 4% — but that’s not all the state has to offer retirees.
Mississippi does not tax most forms of retirement income, including:
- Military retirement pay
- Both private and government pensions
- Distributions from Roth and traditional 401(k)s, 403(b)s and IRAs
- Social Security benefits
Additionally, Mississippi has a low median property tax bill of just $1,189, but a $7,500 homestead exemption for seniors can reduce that to $0 — or close to it — for many homeowners ages 65 and up.
Wyoming
The Tax Foundation ranked Wyoming No. 1 overall in its 2026 State Tax Competitiveness Index.
It joins North Dakota as one of only two states that do not levy an income tax on either individuals or corporations. Like Mississippi, retirees in Wyoming don’t pay taxes on Social Security benefits, pension payments or 401(k) and IRA withdrawals. Groceries are exempt from state and local sales taxes, as are prescription drugs, and there’s no estate or inheritance tax, which is especially important to many older Americans.
Finally, seniors ages 62 and older who have owned their home for at least 10 years can defer up to 50% of their property taxes for principal residences situated on less than 40 acres of land.
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This article originally appeared on GOBankingRates.com: 3 US States With Surprising Retiree Benefits
