Did you know that moving just one state over could save (or cost) you thousands of dollars in taxes every year? Today, we share the updated list of the most and least tax-friendly states for retirees. See where your state ranks before you make your next move!

Here’s what we’re covering in today’s Clark Smart Investing newsletter:

If you search for “best states for retiree taxes,” you’ll find no shortage of ranked lists. Most of them agree on the basics: No income tax is good, high property taxes are bad, and Florida keeps showing up near the top.

The problem is that those lists are built on fixed assumptions that may have nothing to do with your situation. A state that looks excellent for a retiree living mostly on Social Security can look very different for someone drawing $80,000 a year from an IRA. Property taxes are a bigger deal for someone with a paid-off $600,000 home than for someone renting an apartment. And eight states still tax Social Security benefits in 2026 — a fact that rarely gets the attention it deserves.

Your actual tax burden in retirement depends on four things working together: what your state taxes as income, how it treats Social Security, what you’ll pay in property taxes, and what the sales tax adds up to on your everyday spending.

Is your state on the list? From Social Security exemptions to property tax breaks, where you live can make a massive difference in how far your retirement savings actually go. In the full article, discover the best (and worst) states for retirees when it comes to taxes.

Every week, we'll ask a new question to get your take on the latest financial trends and topics.

Last Week’s Poll Results

We asked: “Do you think your retirement savings is/will be enough to last through retirement?” Here’s how you answered:

In this recurring Q&A, we share questions that have been answered by Clark Howard or Wes Moss on the podcast. Submit your question today!

Dave in Michigan: Most of my money is in a traditional IRA. Should I convert my traditional account to Roth before taking Required Minimum Distribution (RMD)s?

Wes Moss says: The Roth conversion has gained a sort of viral, "golden brush" status where people feel like they’re crazy if they aren't doing one, but the reality is that it isn't a universal win. It always comes down to a simple income and tax management question: are you paying more today or tomorrow? If you convert now and pay a 25% tax rate, but your future retirement bracket is only 15%, you've essentially volunteered to pay the government more than you had to. A Roth conversion only makes mathematical sense if you can pay the taxes now at a rate you are certain will be lower than your future rate. While a Roth conversion works for some, it is by no means a requirement for a successful retirement. Don't feel pressured by the hype; if the math on the tax arbitrage doesn't work in your favor today, your plan to draw down your IRA and maximize your Social Security benefit is a perfectly legitimate way to manage your future tax burden.

The Team Clark Consumer Action Center is a free helpline that can help you navigate your money questions. Call 636-492-5275. Visit clark.com/cac for more information.

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