Why State Taxes on Social Security Matter
While state income tax rates may appear modest, even a small percentage can affect fixed-income retirees over time.
Social Security taxes at the state level may:
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Reduce monthly net income
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Impact overall retirement budgeting
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Influence long-term financial sustainability
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Affect relocation decisions
However, it’s important to note that most states that tax Social Security also provide exemptions or income thresholds that protect lower-income seniors.
Let’s break down where Social Security benefits may still be taxed and what that means in practice.
