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39. Best places to retire if you hate taxes
39.  Best places to retire if you hate taxes
Southeast: Fairhope, Ala.
State income tax: 5%; Social Security income and some pension income exempt2
Sales tax: 8%
Med. property tax: $481
Med. home value: $149,000
The scoop: A charming town on Mobile Bay, Fairhope lures boaters, artists, and golfers.

NEXT: 40. Best places to retire if you hate taxes
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Last updated May 12 2010: 10:39 AM ET
Source: Tax Foundation, CCH, local realtor associations, Trulia, Money research
Income tax level assumes annual income of $75,000. Sales tax is state plus local. Median property tax numbers are for the county. 1Taxpayers under age 60 can deduct $2,000 in pension income per year; those 60 and over can deduct $12,500. 2Income from defined-benefit pension plans is tax-exempt.
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