In The Top Ten States for Military Retirees- Part One, we gave you the top five best picks to spend military retirement in. Five others fall among the best states for military retirees.
In the top ten states for military retirees part one, at the top of the list, in the number one spot was Florida, followed by Texas, Alabama, Tennessee and Mississippi.Wondering what other states made the list? If the top five didn’t catch your attention, maybe one of these will:
#6-Nevada: Are you a military retiree who likes to gamble? In sixth place is Nevada. Nevada has no income tax and no tax on retirement income and social security benefits. Although, there is a 6.5% state sales tax and there are also no property tax breaks for seniors in Nevada (perhaps you’ll win this back on weekend trips to Las Vegas).
#7-Washington: Washington ranks as the seventh best state to live in for military retirees. All retirees don’t pay taxes on their retirement income, social security benefits or pensions. Like Nevada, Washington has a 6.5% state sales tax and this percent can even increase to 9.5%, depending on the local tax. There is a four property-tax relief program for seniors owning homes.
#8-Illinois: Illinois at seventh place, exempts retirement tax for military retirees and does not tax social security benefits. The state sales tax is also 6.25% and can go as high as 10% in some areas. For seniors, there is a homestead exemption which allows $5000 reduction of the property that is paid taxes on. Illinois does not have an inheritance tax.
#9-Pennsylvania: Pennsylvania also does not tax military retirees nor does it tax social security benefits. The state sales tax is 6% although prescription and no prescription drugs are exempt along with food, clothing. For homeowners or renters that are 65 or older who live off of a limited income, rebates of paid property tax or rent may be offered.
#10-Ohio: At the bottom of the top ten list is Ohio. Ohio is ranked as one of the best northern states because of the lack of military retiree taxes and also because the state does not tax social security benefits. There is also no inheritance or estate tax. There is a homestead exemption for homeowners over 65 to exempt $25,000 of the market value of their home from local property taxes. The sales tax in Ohio is 5.5% and exempts prescription drugs, food, newspapers, and telephone services.
Other states that didn’t make it on our top ten list who also don’t tax military retirement include Hawaii, Kansas, Louisiana, Massachusetts, New Jersey, New York, Wisconsin, New Hampshire, South Dakota, Wyoming and Alaska.
Perhaps one of the top ten states that don’t tax military retirement pay really caught your attention. Ultimately, your decision lies in other factors like where your family is, what climate you prefer, etc.
Maybe you’ll end up spending retirement in the number one pick, Florida, or maybe in the number #10 pick, Ohio. Regardless of where you retire to, always remember you can file your retirement income on RapidTax.
I moved to florida last year and I sold my home in WV this year. it was sold for 100k and the bank took 2.74% as wv tax. I though anything under 250k was not taxable. is the sale taxed as income? and can I get it back from WV.
Hi Orval,
This will depend on your specific town and county in West Virginia. This does seem a bit high as most locations in West Virginia are taxed at less than 1%. I suggest giving West Virginia’s state revenue department a call directly to see that this is accurate.
I just did my research!! Wow PA exempts military (20 yr reservist) I collect my military when I turn 60 in May, SS benefits, In state pensions (does that mean if I was employed within the state of PA or a state employee?) anyways a teamster for 19 years with a defined pension, and as I just found out from a distribution I received from a 401k (all distributions if eligible). However, this may seem great, but PA is one of the most heavily taxed states in the U.S. My property, local, and school taxes are $5,500 per year along with a state sales tax of 6%. The trade off comes with access to VA healthcare (Pa is also one of the best states). I guess I will move into a trailer or see if I can get some kind of property tax rebate.
I know New York didn’t make the top 10 of this list, but consider this. Most towns in New York also give you a break on local property taxes and a big cost savings all of New York falls under the US Family Health Care(Tricare Prime) which means if you qualify you get top notch health insurance for your whole family for under $500.00 a year. Put these together and compare against other states and you may see that once you add it all up New York may just move up on the list.
Hi Herb,
Thanks for the comment, we appreciate your contribution regarding New York State! We created this article specifically with taxation rates in mind.