Iowa
Iowa also has a cost of living that rests 12 percent below the average in the country. There are 3.1 million people living in the Hawkeye state. We recommend checking out Iowa City, which is a UNESCO “City of Literature” with a great cultural scene. There is no state income tax on Social Security, and you get a state income tax break on pension income. Sadly, taxes are still not that lenient. Retirement income might cost you as much as 8.89 percent! However, those 55 years old and above can choose to exclude as much as $6,000 in taxable retirement income.
Iowa
Alabama
The cost of living in Alabama lies 13 percent under the U.S. average. There are 8 million people living in the state. Retirees seem to prefer Orange Beach! The Heart of Dixie is budget-friendly for retirees, who spend 4.4 percent less than average on senior healthcare. Income taxes range from 2 to 5 percent and Social Security is exempted from taxes. However, storms are intense during the spring and November, so thunderstorms and rain come on these months. Since it is in the South, expect hot summers too.
Alabama
