Tax-friendly states for retirees

  • Florida

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    The Sunshine State is most often associated with retirement in America, and for good reason. Florida's population boomed as seniors flocked within its borders to enjoy sunny weather and low taxes. The state excludes Social Security income and pension income from taxation.

    Still, Florida only ranked 17th in Bankrate's survey. While it doesn't have an estate tax, its sales taxes can be relatively high. And although it has a high concentration of senior citizens -- which Bankrate considers positive -- it didn't break the top 10 rankings in any other categories, such as health care quality or culture.