Top seven states with the lowest taxes for retirees

Which states have the lowest taxes for retirees?

4. South Dakota

Melanie Stetson Freeman/The Christian Science Monitor/File
The sun shines on Mount Rushmore National Memorial, on June 10, 2012 outside Keystone, South Dakota.

The tax structure in the Midwestern state of South Dakota is one of the most favorable in the country. South Dakota does not levy a tax on retirement income, inheritances, and estates. Sales taxes are relatively low compared to other areas in the region at 4 percent, but it can swing as high as 6 percent in some municipalities. The median home price is roughly $126,000. The only downside to retiring in South Dakota is it's inclement winter weather, but it's great in the summer, especially if you love the outdoors.

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