Where's the best state for you to retire? A lot will depend on your sources of income. For retirees, while relocating to an income-tax-free state such as Florida or Texas may sound appealing, sometimes the best retirement destination is a state that imposes an income tax, but offers generous exemptions for Social Security benefits, pensions and other types of typical retirement income. 

See the list of 10 Tax-Friendly States for Retirees (http://custom.yahoo.com/lifelonginvesting/slideshows/sets/441/tax-friendly-states-for-retirees?mod=fidelity-livingretirement))

Just make sure that, before you move anywhere in retirement, you factor in local taxes, too. Municipalities can impose hefty property taxes or other assessments. Federal taxes? They'll be about the same no matter where you live.