Retiring richer starts with knowing where your money stays yours.
Moving into retirement isn’t just about slowing down; it’s about being smart with every dollar you worked so hard to earn. Social Security might not be the windfall you dreamed of, but stretching it further can mean the difference between scraping by and actually enjoying your golden years. One of the easiest ways to keep more of what’s yours? Choosing a state that won’t take a chunk of your benefits.
A lot of people don’t realize that not all states treat Social Security the same. Some are ready to dip into it, while others let you keep every penny. Picking the right home base can protect your finances and leave you breathing a lot easier month to month. If you’re serious about retiring richer, these 12 states deserve a spot at the top of your list.
1. Alaska lets you keep every penny.
Alaska doesn’t just skip taxing your Social Security—it skips taxing your income altogether. That’s right, zero state income tax, period, according to the authors at the Tax Foundation. Plus, every eligible resident gets an annual dividend from the state’s oil wealth fund, which can pad your retirement budget even more.
Of course, it’s not all perfect. The cost of living can be high in some areas, and winters are definitely not for the faint of heart. But if you crave adventure and want your retirement dollars to work harder, Alaska might just be worth a second look. Wide open spaces and wide open bank accounts make a pretty tempting pair.
2. Florida knows how to treat retirees right.
It’s no secret that Florida is a retirement magnet—and with good reason. Social Security benefits aren’t taxed here, and there’s no state income tax at all, as reported by Katelyn Peters at Investopedia. That means more sunshine and more money in your pocket to enjoy it.
Beyond the tax breaks, Florida offers a huge range of communities tailored to every retirement dream, from quiet beach towns to bustling cities full of activities. Sure, hurricanes and heat are part of the deal, but plenty of retirees happily trade a little weather drama for year-round warmth and serious savings.
3. Nevada lets you gamble—but not with your Social Security.
Nevada isn’t just for Vegas high-rollers. It’s one of the few states where you can hang onto your full Social Security check without state interference. No income tax means more freedom to budget for the life you want, as stated by Cameron Huddleston at AARP.
While cities like Las Vegas and Reno have big personalities, the state also offers peaceful desert retreats and mountain towns for those who prefer a slower pace. The key here is choice—and when your benefits aren’t being taxed, you get a lot more say in how you spend your time and money.
4. New Hampshire leaves your benefits alone.
New Hampshire doesn’t tax Social Security income, which is great news for retirees looking for a peaceful place to stretch their money. While the state does tax interest and dividends, straight-up Social Security benefits are safe.
It’s a state packed with charm, from its small towns to its forested mountains. Winters can be intense, but if you love crisp air, cozy fires, and stunning fall colors, it might feel like living inside a postcard. A little financial breathing room makes that picture even sweeter.
5. South Dakota is kinder to your wallet.
South Dakota checks all the important boxes: no income tax, no Social Security tax, and a relatively low cost of living. Your money simply goes further here, leaving more room for travel, hobbies, or spoiling the grandkids a little extra.
The state also scores surprisingly well in healthcare access and overall quality of life for retirees. Sure, it’s not tropical, but for those who prefer wide open skies, friendly communities, and financial freedom, South Dakota might be an unexpected jackpot.
6. Tennessee keeps your Social Security intact.
Tennessee phased out its Hall Income Tax, meaning all your retirement income—including Social Security—is safe. Add in affordable housing and reasonable healthcare costs, and you have a strong financial foundation for retirement.
Plus, Tennessee offers a blend of vibrant cities like Nashville and Memphis with quieter rural communities if you’re seeking a slower rhythm. Whether you love country music, barbecue, or beautiful mountain views, there’s a corner of Tennessee where you can thrive without draining your savings.
7. Texas lets you hold onto your hard-earned benefits.
Big skies, big personalities—and no Social Security tax. Texas has long been a favorite for retirees who want to stretch their dollars while living large. There’s no state income tax at all, meaning your Social Security check stays fully intact.
The sheer size of Texas means you’ll find just about every lifestyle under the sun: bustling urban centers, sleepy small towns, beachfront living, and sprawling ranches. Property taxes can be high, but for many, the overall math still tilts heavily in Texas’s favor when it comes to retirement finances.
8. Washington offers financial breathing room.
Social Security checks stay untouched in Washington, thanks to no state income tax. Plus, retirees who love the outdoors will find plenty to love: mountains, forests, and coastline are all at your doorstep.
The cost of living can climb pretty high in cities like Seattle, but choosing a smaller town can balance things out. No state income tax means more of your benefits stay where they belong—in your pocket, funding hikes, ferry rides, and all the fresh air adventures you can handle.
9. Wyoming keeps taxes low and spirits high.
In Wyoming, Social Security income isn’t taxed—and neither is any other form of income. Plus, property and sales taxes here are among the lowest in the country, giving retirees even more breathing room.
Wyoming offers rugged beauty, a strong sense of community, and plenty of space to stretch out. If you’re looking for a quieter, slower kind of retirement with your finances in solid shape, Wyoming might just surprise you with how rich life can feel without a big-city price tag.
10. Pennsylvania protects your Social Security benefits.
Pennsylvania might not be the first place that comes to mind for retirement, but it offers one huge advantage: no state taxes on Social Security income. In fact, most retirement income is untaxed, making it a solid pick for stretching your dollars.
The state blends historic charm with a low cost of living in many areas, especially compared to nearby states like New York and New Jersey. Whether you want a bustling small city or a peaceful rural town, Pennsylvania offers plenty of options that won’t put extra pressure on your retirement funds.
11. Mississippi lets you keep more of your nest egg.
Mississippi exempts all retirement income, including Social Security, from state taxes. Couple that with one of the lowest costs of living in the country, and your savings can stretch a whole lot further.
While it might not have the glitz of flashier retirement states, Mississippi offers warm weather, southern hospitality, and a slower, more affordable way of life. If staying comfortable without sacrificing your savings is high on your list, this state deserves a serious look.
12. Illinois leaves your Social Security alone.
Illinois doesn’t tax Social Security benefits, and it also exempts many types of retirement income from state taxes. Despite property taxes being a bit higher, the lack of retirement income tax can seriously soften the blow.
If you love four distinct seasons and staying close to cultural hubs like Chicago while still preserving your finances, Illinois offers an interesting mix. Picking the right town can make all the difference between feeling squeezed and feeling free. For many, the math adds up to a smart, sustainable retirement.