7. State Tax Policies May Diverge Further
While federal tax discussions dominate headlines, state-level changes often have immediate effects.
Some states are considering:
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Eliminating taxes on Social Security
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Adjusting retirement income exclusions
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Modifying property tax relief programs for seniors
By 2026, differences between states may widen. For retirees considering relocation, tax friendliness alone isn’t enough—healthcare access, insurance markets, and cost of living all matter.
But state tax policy can still significantly influence net retirement income.
