Federal taxes will be about the same no matter where you live, but state and local tax burdens can vary greatly, especially if you're retired. Where's the best place for you to retire? A lot will depend on your sources of income. Many states that have an income tax exempt certain types of income—such as government and military pensions, Social Security benefits or even distributions from private pensions or retirement savings up to a certain amount each year. In fact, income taxes may be the least of your worries in retirement. Property taxes can be a bigger ongoing concern, with huge fluctuations from city to city and county to county. And remember: state and local sales taxes will nick you every time you open your wallet.

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