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A national advocacy group for retirees recommends Alaska and other states with no income taxes for Americans who want to avoid paying taxes on payouts from their pensions, IRAs and 401(k) plans.

AARP names nine states that don’t tax distributions from retirement plans because they have no state income tax. Those states are Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington and Wyoming.

“Saving for retirement is important, but saving money in retirement is important, too,” according to AARP. “One possible way to save money is to move to a state with no income tax. For retirees, that can mean no state tax on Social Security benefits, pensions and other sources of retirement income.”

AARP notes that some states fill the gap through sales taxes, such as the 6 percent sales tax in Florida. Washington has a tax on gasoline at the pump. 

Alaska and New Hampshire have no statewide sales tax either, though some Alaska municipalities impose their own local taxes.

Alaska is among five U.S. states that depend on property taxes more than other places in the nation, based on 2018 data, AARP said. Alaska gets 45.6 percent of its revenue from property taxes, topped only by New Hampshire.

Alaska Economic Trends Magazine, produced by the Alaska Department of Labor and Workforce Development, reported in July that the cost-of-living index is a common tool for comparing how the affordability of living in Alaska compares to the rest of the nation.

The cost of living in four Alaska communities surveyed — Fairbanks, Anchorage, Juneau and Kodiak — was “well above the national average” for the first quarter of 2021, according to the publication.

The cost of living index is based on surveys of U.S. cities by the Council for Community and Economic Research. The survey looks at more than 50 items, from groceies and transporation to housing and healthcare. “While housing in Alaska drives overall costs up considerably, the suvery found expenditures in all categories were higher than the natural average. Healthcare costs are particularly high in Alaska,” the publication reports.

Contact Linda F. Hersey at 907-459-7575 or follow her at twitter.com/FDNMpolitics.