Pennsylvania
You will be able to save quite a lot of your retirement money as the Keystone state does not have a tax bracket for pension income. Thus, any income you may make during your golden years from an employer-sponsored plan will remain untouched by the state government. This is generally true for 401(k) and IRA payments as long as you start receiving them after you reach full retirement. In order to make sure you are not getting your retirement income taxed, you should not retire early in Pennsylvania.
The good news is that benefits aren’t taxed at all. Otherwise, you can expect a flat rate of 3.07% for all your income (which is low when compared with other states) and in the case of an inheritance, the tax ranges anywhere between 4.5% and 15%, depending on your relationship with the deceased and the age at which they passed away.
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!
excellent statement !
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.
Agree with Jim
These ads are a drag….
Agreed
Wow…Texas?
Very very high real estate taxes
No if you’re 65 or older.
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.
Well you are wrong. Florida texes is high.
I live in California and I do not pay taxes on my social security. Why wasn’t it included in this article?
True, CA does not tax social security retirement benefits, but does tax pensions, 401s and IRAs as high as 13%. Also, CA taxes military retirement income. CA has very high real property taxes too. I lived in CA 22 years, but left in 2018 when I retired.
I live in Tennessee – we have no state tax on income, social security or otherwise?