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The national website SmartAsset ranks Houghton as one of the top 10 tax-friendly cities in Michigan.
In their fourth annual study, the website analyzed sales, property, income, fuel and Social Security tax data to rank locations on how friendly they are for retirees.
Houghton came in at number 8 on the list. Marquette was ranked number 3 with St. Louis, Michigan, in the heart of the Lower Peninsula, came in at number 1.
The table below shows which cities lead Michigan in retirement tax friendliness.
| Rank | City | Income Tax Paid | Property Tax Rate | Sales Tax Paid | Fuel Tax Paid | Social Security Taxed? | Retirement Tax Friendliness Index |
| 1 | St. Louis, MI | $5,396 | 1.67% | $937 | $210 | Not Taxed | 60.91 |
| 2 | Allendale, MI | $5,396 | 1.27% | $937 | $431 | Not Taxed | 60.62 |
| 3 | Marquette, MI | $5,396 | 1.39% | $937 | $394 | Not Taxed | 60.03 |
| 4 | Temperance, MI | $5,396 | 1.19% | $937 | $510 | Not Taxed | 59.88 |
| 5 | Jenison, MI | $5,396 | 1.25% | $937 | $498 | Not Taxed | 59.47 |
| 6 | Benton Harbor, MI | $5,396 | 1.66% | $937 | $288 | Not Taxed | 59.26 |
| 7 | Byron Center, MI | $5,396 | 1.32% | $937 | $483 | Not Taxed | 58.89 |
| 8 | Houghton, MI | $5,396 | 1.75% | $937 | $260 | Not Taxed | 58.85 |
| 9 | Lambertville, MI | $5,396 | 1.29% | $937 | $510 | Not Taxed | 58.71 |
| 10 | Fair Plain, MI | $5,396 | 1.46% | $937 | $430 | Not Taxed | 58.50 |
