5. Michigan
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Average annual benefit: $18,614
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In The Great Lakes State, 1,498,279 retirees collected an average of $1,551.19 in monthly benefits. Michigan does not tax Social Security. Their sales tax is 6%, and they have a flat state income tax of 4.25%.
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Although property taxes are regarded as high, there are homestead credits available to homeowners. Michigan is considered tax-friendly towards retirees, who can deduct some retirement income from their taxes.
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