• Retirees often relocate for tax reasons to one of the best tax states in the country.retirement fun image by Pix by Marti from Fotolia.com
  
  Retirees often relocate for a variety of reasons upon retirement, including weather, family, entertainment and, oddly enough, taxes. Regardless of where you live, federal taxes don't change, but the state and local taxes in certain states can become a large financial burden for retirees, according to a 2010 study by Kiplinger. The best places to retire for tax reasons often offer stellar rates for income and property taxes.
  
  

Washington

• The state of Washington has no broad-based personal income tax, and retirees are not taxed on pensions, Social Security or any other retirement income. While the state has a relatively high sales tax--often reaching almost 9 percent--retirees do not have to pay taxes on food and prescription drugs. Property taxes remain fairly standard at about 30 percent, but the state offers an exemption program for adults 61 years or older, according to Kiplinger.
  
  

Tennessee

• Tennessee remains one of the most retiree-friendly states in the country with no broad-based income tax, tax-free salaries provided, Social Security benefits, pensions and IRA distribution, according to Kiplinger. The state sales tax for most items stands at 7 percent--which doesn't include prescriptions--and food has a 5.5 percent tax. Additionally, property tax is measured by 25 percent of the fair market value. The lack broad-based income taxes offsets these higher property taxes, however.
  
  

Florida

• Florida is best known for its year-round sunshine, beach resorts and large populations of retirees. What many don't realize is that the lack of a state income tax attracts many of these individuals to Florida for retirement. Food and prescription and non-prescription drugs are not taxed, but the state sales tax often runs at 7.5 percent. Additional perks include retirement tax breaks on properties, no inheritance taxes and limited estate tax.
  
  

Nevada

• Nevada has no state income tax for retirees, which includes Social Security benefits, salaries and pensions. The state does have a 6.85 percent sales tax--excluding food and prescription drugs--and each county can add up to 0.825 percent to that rate. Property tax in Nevada runs at 35 percent of the fair market value. It administers no inheritance tax and only the federal government administers estate tax.