Forty-two states don't tax Social Security benefits, giving many retirees a break on at least one major source of income.
Some states also exempt pension income, retirement account withdrawals, or military retirement pay from state taxes.
Nine states have no broad individual income tax, though retirees may still face property, sales, or other state and local taxes.
After a lifetime of contributing to Social Security, building up a retirement plan, or earning a pension, you may be bracing for a big tax hit in retirement. But state taxes vary widely, and many retirees get a break: 42 states don't tax Social Security income, 37 don't tax most military retirement pay, and 16 exempt pension income from state taxes.
Nine states go even further by not imposing a broad individual income tax at all. That can make a meaningful difference in how much retirement income you get to keep, though property, sales, and other taxes still matter when deciding where to live.
#income #don 't #pension
Some states also exempt pension income, retirement account withdrawals, or military retirement pay from state taxes.
Nine states have no broad individual income tax, though retirees may still face property, sales, or other state and local taxes.
After a lifetime of contributing to Social Security, building up a retirement plan, or earning a pension, you may be bracing for a big tax hit in retirement. But state taxes vary widely, and many retirees get a break: 42 states don't tax Social Security income, 37 don't tax most military retirement pay, and 16 exempt pension income from state taxes.
Nine states go even further by not imposing a broad individual income tax at all. That can make a meaningful difference in how much retirement income you get to keep, though property, sales, and other taxes still matter when deciding where to live.
#income #don 't #pension
13 days ago
