44. South Dakota

Average annual benefit: $16,754

The Social Security Administration says 133,040 retired workers in the Mount Rushmore State averaged $1,396.20 monthly. No state income tax means benefits are not taxable. There’s no inheritance or estate taxes either.

State sales tax is 4.5%, but localities can double that, averaging 6.4%. Higher than average property taxes can be offset by homestead exemptions and additional reductions for seniors. Overall, South Dakota is very tax-friendly.