46. Arkansas
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Average annual benefit: $16,642
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In the Natural State, 439,558 retirees collected average monthly benefits of $1,386.84. Tax-friendly Arkansas does not tax benefits, and retirement income is only partially taxed with offered deductions.
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Homestead exemptions may further reduce low property taxes. While sales tax is very high, a 9.53% state average, medicines are exempt. Grocery taxes are 0.125%. There’s no inheritance or estate taxes, but capital gains are taxed.
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