When considering the perfect spot to spend your golden years, you’ll likely take many factors into account: cost of living, weather, proximity to loved ones and maybe even your ability to pursue hobbies that are important to you.
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Nothing says comfortable retirement quite like living near your family or access to great restaurants, nightlife or outdoor activities. One piece of the retirement-planning puzzle that can easily be overlooked is taxes. Though you won’t be paying income tax anymore, there are other taxes to consider that can deplete your nest egg way too quickly. So, it’s important to know what your ideal retirement city’s tax situation looks like.
GOBankingRates looked at the 50 biggest cities in the U.S. by housing market, according to Zillow’s December 2024 data, and ranked them to determine the most and least tax-friendly cities for retirees.
Whether your retirement is years down the road or just around the corner, it’s important to know how taxes will affect your outlook. Starting with the most tax-friendly cities for retirees, learn the best and worst places to retire when it comes to taxes.
1. Philadelphia
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $210,087
- Annual property tax estimate by county: $1,912
- Property tax rate: 0.9%
- Sales tax: 8%
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2. Jacksonville, Florida
- Annual state retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $301,125
- Annual property tax estimate by county: $2,560
- Property tax rate: 0.9%
- Sales tax: 7.5%
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3. Las Vegas
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $437,635
- Annual property tax estimate by county: $3,151
- Property tax rate: 0.7%
- Sales tax: 8.4%
4. Orlando, Florida
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $406,483
- Annual property tax estimate by county: $3,821
- Property tax rate: 0.9%
- Sales tax: 6.5%
5. Louisville, Kentucky
- Annual retirement taxes: $383
- Effective retirement tax rate: 0.5%
- Home value: $240,324
- Annual property tax estimate by county: $2,163
- Property tax rate: 0.9%
- Sales tax: 6%
6. Memphis, Tennessee
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $140,178
- Annual property tax estimate by county: $1,934
- Property tax rate: 1.4%
- Sales tax: 9.8%
7. Nashville, Tennessee
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $436,745
- Annual property tax estimate by county: $4,193
- Property tax rate: 1%
- Sales tax: 9.8%
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8. Atlanta
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $440,612
- Annual property tax estimate by county: $4,759
- Property tax rate: 1.1%
- Sales tax: 8.9%
9. Miami
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $642,609
- Annual property tax estimate by county: $6,555
- Property tax rate: 1%
- Sales tax: 7%
10. Mesa, Arizona
- Annual retirement taxes: $976
- Effective retirement tax rate: 1.3%
- Home value: $446,897
- Annual property tax estimate by county: $2,637
- Property tax rate: 0.6%
- Sales tax: 8.3%
11. Phoenix
- Annual retirement taxes: $976
- Effective retirement tax rate: 1.3%
- Home value: $425,953
- Annual property tax estimate by county: $2,513
- Property tax rate: 0.6%
- Sales tax: 8.6%
12. Chicago
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $300,169
- Annual property tax estimate by county: $4,142
- Property tax rate: 1.4%
- Sales tax: 10.3%
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13. Cincinnati
- Annual retirement taxes: $442
- Effective retirement tax rate: 0.6%
- Home value: $237,015
- Annual property tax estimate by county: $3,636
- Property tax rate: 1.5%
- Sales tax: 6.5%
14. Tucson, Arizona
- Annual retirement taxes: $976
- Effective retirement tax rate: 1.2%
- Home value: $335,769
- Annual property tax estimate by county: $2,720
- Property tax rate: 0.8%
- Sales tax: 8.7%
15. El Paso, Texas
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $222,153
- Annual property tax estimate by county: $4,643
- Property tax rate: 2.1%
- Sales tax: 7.3%
16. Seattle
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $914,171
- Annual property tax estimate by county: $8,045
- Property tax rate: 0.9%
- Sales tax: 10.4%
17. Columbus, Ohio
- Annual retirement taxes: $442
- Effective retirement tax rate: 0.6%
- Home value: $253,028
- Annual property tax estimate by county: $4,226
- Property tax rate: 0.7%
- Sales tax: 7.5%
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18. Fresno, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $387,228
- Annual property tax estimate by county: $2,517
- Property tax rate: 0.7%
- Sales tax: 7.5%
19. Pittsburgh
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $221,573
- Annual property tax estimate by county: $4,919
- Property tax rate: 2.2%
- Sales tax: 7%
20. Colorado Springs
- Annual retirement taxes: $1,678
- Effective retirement tax rate: 2.2%
- Home value: $455,111
- Annual property tax estimate by county: $2,139
- Property tax rate: 0.5%
- Sales tax: 8.2%
21. San Antonio
- Annual retirement taxes: $0
- Effective retirement tax rate: 0%
- Home value: $255,554
- Annual property tax estimate by county: $5,418
- Property tax rate: 2.1%
- Sales tax: 8.3%
22. Oklahoma City
- Annual retirement taxes: $1,468
- Effective retirement tax rate: 1.9%
- Home value: $198,018
- Annual property tax estimate by county: $1,901
- Property tax rate: 1%
- Sales tax: 8.6%
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23. New York City
- Annual retirement taxes: $1,248
- Effective retirement tax rate: 1.6%
- Home value: $786,397
- Annual property tax estimate by county: $4,797
- Property tax rate: 0.6%
- Sales tax: 8%
24. Sacramento, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $484,408
- Annual property tax estimate by county: $3,294
- Property tax rate: 0.7%
- Sales tax: 8.8%
25. Bakersfield, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $386,283
- Annual property tax estimate by county: $3,090
- Property tax rate: 0.8%
- Sales tax: 8.3%
26. Virginia Beach, Virginia
- Annual retirement taxes: $1,624
- Effective retirement tax rate: 2.1%
- Home value: $408,861
- Annual property tax estimate by county: $3,312
- Property tax rate: 0.8%
- Sales tax: 6%
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27. Denver
- Annual retirement taxes: $1,678
- Effective retirement tax rate: 2.2%
- Home value: $587,101
- Annual property tax estimate by county: $3,170
- Property tax rate: 0.5%
- Sales tax: 9.2%
28. Detroit
- Annual retirement taxes: $1,199
- Effective retirement tax rate: 1.6%
- Home value: $71,089
- Annual property tax estimate by county: $1,472
- Property tax rate: 2.1%
- Sales tax: 6%
29. Houston
- Annual retirement taxes: $0
- Effective retirement tax rate: 0.0%
- Home value: $271,965
- Annual property tax estimate by county: $6,282
- Property tax rate: 2.3%
- Sales tax: 8.3%
30. Indianapolis
- Annual retirement taxes: $1,613
- Effective retirement tax rate: 2.1%
- Home value: $223,801
- Annual property tax estimate by county: $2,574
- Property tax rate: 1.2%
- Sales tax: 7%
31. Dallas
- Annual retirement taxes: $0
- Effective retirement tax rate: 0.0%
- Home value: $321,537
- Annual property tax estimate by county: $7,010
- Property tax rate: 2.2%
- Sales tax: 8.3%
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32. Washington, D.C.
- Annual retirement taxes: $2,138
- Effective retirement tax rate: 2.8%
- Home value: $723,556
- Annual property tax estimate by county: $3,328
- Property tax rate: 0.5%
- Sales tax: 6%
33. Kansas City, Missouri
- Annual retirement taxes: $1,450
- Effective retirement tax rate: 1.9%
- Home value: $232,081
- Annual property tax estimate by county: $2,947
- Property tax rate: 1.3%
- Sales tax: 9%
34. Long Beach, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $873,848
- Annual property tax estimate by county: $5,156
- Property tax rate: 0.6%
- Sales tax: 10.3%
35. Fort Worth, Texas
- Annual retirement taxes: $0
- Effective retirement tax rate: 0.0%
- Home value: $300,505
- Annual property tax estimate by county: $7,122
- Property tax rate: 2.4%
- Sales tax: 8.6%
36. Baltimore
- Annual retirement taxes: $1,978
- Effective retirement tax rate: 2.8%
- Home value: $180,051
- Annual property tax estimate by county: $2,071
- Property tax rate: 1.2%
- Sales tax: 6%
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37. Raleigh, North Carolina
- Annual retirement taxes: $1,481
- Effective retirement tax rate: 2.4%
- Home value: $443,388
- Annual property tax estimate by county: $3,591
- Property tax rate: 0.8%
- Sales tax: 7.3%
38. Los Angeles
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $989,702
- Annual property tax estimate by county: $5,839
- Property tax rate: 0.6%
- Sales tax: 9.5%
39. San Diego
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $1,119,226
- Annual property tax estimate by county: $6,827
- Property tax rate: 0.6%
- Sales tax: 7.8%
40. San Francisco
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $1,353,281
- Annual property tax estimate by county: $7,443
- Property tax rate: 0.6%
- Sales tax: 8.6%
41. Charlotte, North Carolina
- Annual retirement taxes: $1,841
- Effective retirement tax rate: 2.4%
- Home value: $401,024
- Annual property tax estimate by county: $4,211
- Property tax rate: 1.1%
- Sales tax: 7.3%
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42. Austin, Texas
- Annual retirement taxes: $0
- Effective retirement tax rate: 0.0%
- Home value: $548,997
- Annual property tax estimate by county: $10,870
- Property tax rate: 2%
- Sales tax: 8.3%
43. Boston
- Annual retirement taxes: $2,247
- Effective retirement tax rate: 2.9%
- Home value: $785,253
- Annual property tax estimate by county: $6,125
- Property tax rate: 0.8%
- Sales tax: 6.3%
44. Albuquerque, New Mexico
- Annual retirement taxes: $2,759
- Effective retirement tax rate: 3.6%
- Home value: $327,626
- Annual property tax estimate by county: $2,654
- Property tax rate: 0.8%
- Sales tax: 7.6%
45. San Jose, California
- Annual retirement taxes: $1,436
- Effective retirement tax rate: 1.9%
- Home value: $1,463,410
- Annual property tax estimate by county: $9,805
- Property tax rate: 0.7%
- Sales tax: 9.4%
46. Buffalo, New York
- Annual retirement taxes: $1,248
- Effective retirement tax rate: 1.6%
- Home value: $219,743
- Annual property tax estimate by county: $5,823
- Property tax rate: 2.7%
- Sales tax: 8.8%
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47. Milwaukee
- Annual retirement taxes: $2,124
- Effective retirement tax rate: 2.8%
- Home value: $195,562
- Annual property tax estimate by county: $4,381
- Property tax rate: 2.2%
- Sales tax: 5.9%
48. Rochester, New York
- Annual retirement taxes: $1,248
- Effective retirement tax rate: 1.6%
- Home value: $207,750
- Annual property tax estimate by county: $6,066
- Property tax rate: 2.9%
- Sales tax: 8%
49. Portland, Oregon
- Annual retirement taxes: $3,456
- Effective retirement tax rate: 4.5%
- Home value: $543,024
- Annual property tax estimate by county: $5,376
- Property tax rate: 1%
- Sales tax: 0%
50. Omaha, Nebraska
- Annual retirement taxes: $3,098
- Effective retirement tax rate: 4%
- Home value: $273,938
- Annual property tax estimate by county: $5,397
- Property tax rate: 2%
- Sales tax: 7%
Travis Woods contributed to the reporting for this article.
Methodology: GOBankingRates looked at the 50 biggest cities in the U.S. by housing market according to Zillow’s December 2024 data and ranked them to determine the most and least tax-friendly cities for retirees. Each city was scored on: (1) its estimated total amount paid in retirement taxes annually; (2) the effective retirement tax rate in each state, calculated as the percentage of total income paid in retirement taxes; (3) the average amount paid in property taxes annually; (4) the estimated property tax rate in its county, parish or district from Tax-Rates.org; and (5) the sales tax rate in each city, according to Avalara. Estimated retirement taxes paid were calculated by state, assuming a single-filer turning 65 in 2025, receiving the national average annual amount in retirement benefits (sourced from the Social Security Administration’s December 2024 Monthly Statistical Snapshot) and collecting the majority of their income from a retirement account (assuming retirement benefits account for 30% of total income, as estimated by the SSA Fact Sheet). The average property taxes were calculated using Tax-Rates.org’s Property Tax Calculator to apply the appropriate county, parish or district’s tax rates to the estimated 2024 median home value for each city (as sourced from Zillow’s December 2024 Housing Data). All 50 cities were then ranked according to their scores on the above 5 factors, with sales tax weighted at 0.5x the other factors. All data was compiled on and is up to date as of Feb. 4, 2025.
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This article originally appeared on GOBankingRates.com: The Most and Least Tax-Friendly Cities for Retirees
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