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Washington State also has no state income tax. However, real estate taxes and sales tax may be higher than in other states.

Also, you will still have to pay federal taxes on qualifying income. And if you live in a state that has income tax and itemize your deductions, the state tax is deductible, whereas higher sales tax is not.

I believe Kiplinger's Personal Finance did an article in the last year that rated the best places to retire and took into account health care, taxes, housing costs etc. Might be worth your while to look for a copy.

Best of Luck,

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