14 States Where Your Pension Won’t Get Taxed

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Tennessee

Pensions: Tennessee is one of the friendliest states when it comes to taxes on retirement income. For starters, the Volunteer State doesn’t tax your pension income. More than that, the existing tax on interest and dividends will be eliminated after 2020.
401(k)s and IRAs: Secondly, you can take money out of your 401(k) account or IRA without paying any tax for it.
Social Security Benefits: Tennessee retirees don’t have to pay any tax on their Social Security benefits.
Income Tax Range: The 2 percent rate in 2019 dropped to 1% in 2020 and will be phased out to 0% in 2021 and later. In addition, if you or your spouse are at least 100 old, you receive a full tax-exemption on your income.

 

South Dakota

Pensions: How tax-friendly is South Dakota for retirees? Pretty friendly if we were to judge by the biggest perk- there’s no income tax, which means there’s no tax on your pension income.
401(k)s and IRAs: More than that, South Dakota doesn’t tax your withdrawals from your 401(k) or IRA.
Social Security Benefits: Social Security benefits are exempt from taxes as well.
Income Tax Range: Not applicable since there is no income tax.

Your pension will be the star if you move to this next state…..

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2 thoughts on “14 States Where Your Pension Won’t Get Taxed”

  1. Rene Gabriel Hernandez

    Thank You for this information
    Question: Will my IRA and social security be taxed if you retire in one state and move to another?

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