Study Says Faribault a Great Place for Retirees in Minnesota
According to a recent study from SmartAsset, a New York-based technology company, Faribault is one of the most tax-friendly places for retirees in Minnesota.
The study ranks cities on a Retirement Tax Friendliness Index, which takes into account property, income, fuel, sales and Social Security tax data.
Faribault ranks 10th in the state, and only one other southern Minnesota community is in the top 10. Austin is ninth.
The complete listing is below.
City / Retirement Tax Friendliness Index
- Grand Rapids / 13.53
- Chisholm / 13.46
- Virginia / 13.20
- International Falls / 12.93
- Hibbing / 12.73
- Brainerd / 12.34
- Detroit Lakes / 11.18
- Willmar / 10.35
- Austin / 10.11
- Faribault / 10.02
To be clear, Minnesota is not considered a tax-friendly state by SmartAsset because Social Security income is partially taxed and public and private pension income is fully taxed.
Minnesota has the seventh-highest sales tax in the United States, and property taxes are close to the national average. Minnesota also has an estate tax.
Nationally, Alaska is the tax-friendliest state for retirees in the country with nine of the top 10 cities in the state led by Wassilla.
The only city not in Alaska in the top 10 is Powell, Wyoming, at No. 9.
Alaska does not tax Social Security, has no sales tax and no estate tax, according to SmartAsset.
You can find more details on the study results and methodology, and an interactive map here: https://smartasset.com/retirement/minnesota-retirement-taxes
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