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Alabama

State income tax: 2 percent to 5 percent
State sales tax: 4 percent
Mean property tax rate as a percentage of mean home value: 0.40 percent, but seniors 65 and older do not pay state property tax
Property tax ranking: No. 49 (with one being the highest and 50 the lowest.)
Estate tax: Noneā€”but taxpayers pay a "pickup" tax for state death taxes
Inheritance tax: None

The Yellowhammer State boasts not only a balmy Gulf Coast breeze but one of the most favorable retirement tax climates. Senior homeowners pay nothing, nada, zilch in property taxes, and retirement income from Social Security and most pensions is also exempt.

Add low income tax rates and a sales tax exemption on prescription drugs, and you might be left with enough in your wallet to enjoy more seafood gumbo with sweet iced tea.

Jeff Greenberg | Getty Images