Mississippi
In the case of Mississippi, it’s a bit different than the ones we have had before. To start off, if you retire early, the Magnolia State is going to be taking a cut from your pension, IRA, or 401(k) generated income. However, if you are over the age of 59 and a half, then it will not be taxing any of your retirement income, and, as a rule of thumb, it will also not be taxing your social security benefit payments, nor will there be an estate or inheritance tax!
If your income is taxable, then Mississippi will tax your income for the 2022 tax year between $5,001 and $10,000 at a rate of 4%, while everything over $10,000 will have a 5% rate. From 2023, there will be some changes, and every year the tax on income will only apply after $10,000, and every year the rate will be lower until it will eventually reach 0%.
You can read more here about how Mississippi taxes its retirees.
9 Responses
So much more needs to be considered when deciding where to retire. I have noticed a huge disparity in property taxes from state to state & sometimes towns or counties within the state. Maybe you’re not being taxed on retirement income but would pay a premium on property taxes & medical expenses etc. For example, Florida has no income tax but their property taxes are quite high as are condo dues if you’re living in an HOA. Do your research!
So, if the only income you’ve only received in 2022 was income for SNAP food services, must that be an actual income?
This would be a good article if a person did not have to click through page after page. This all could have fit on one page.
Wow…Texas?
Very very high real estate taxes
thanks for the information it is very useful
What about Kansas?
I thought Florida was one of the states that didn’t tax seniors
Good to know.