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36. Delaware

When most people think of Deleware, scenic small towns probably come to mind, or maybe the state's impressive fall foliage or even its place in early American history. However, when it comes to the best place to retire, Deleware is a somewhat mixed bag. On the one hand, it doesn't tax retirees nearly as much as a lot of other states in the U.S., completely forgoing taxes on Social Security benefits and sometimes pensions.

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However, the cost of living is around 11% more than the national average. Around 1 million people live in the state, and 201,000 of them are 65 or older. Deleware does not have sales tax.