Mississippi
Pensions: The Magnolia State can be considered a haven for retirees. For starters, the state does not levy any tax on private or government pension income as long as you’re planning on using it when you reach your retirement age and not before age 59½.
401(k)s and IRAs: Ditto for 401(k) plan and IRA distributions. Except for early distributions, Mississippi doesn’t tax 401(k) plan and IRA distributions.
Social Security Benefits: Social Security benefits are also not taxed in Mississippi, so you get to keep more of them.
Income Tax Range: For the income that’s taxed in Mississippi, the lowest tax rate is 3% (on taxable income of $2,000 or more), and the highest is 5% (on taxable income exceeding $10,000). In the following years, the 3% rate will be progressively being phased out.
Pennsylvania
Pensions: Should you retire to Pennsylvania? Definitely, yes. The Keystone State doesn’t levy any tax on the pension income received from an eligible employer-sponsored retirement plan. Of course, things change if you retire early.
401(k)s and IRAs: 401(k) plan or IRA benefits are not taxed in Pennsylvania (excluding the early retirement scenario).
Social Security Benefits: Your Social Security benefits are excluded from taxation as well.
Income Tax Range: Pennsylvania imposes a flat income tax rate of 3.07%.
20 thoughts on “14 States Where Your Pension Won’t Get Taxed”
good info
Thank you for sharing this information & doing all the research.
Great article
Hope you follow up with other Tax issues/problem living in those state
I.E sales taxes, Inheritance Tax (Wash bad)
I am activly looking to get out of Calif
Florida and Wy my two places so far
Don’t overlook Montana!
The picture used for the state of Washington is actually of D.C.
What about Connecticut we are taxed to death!!! We need to get out share! The government is so critical to all those who have people who are like me on social security!! Plus all the people in this state that have loss their jobs due to the pandemic. I am a shame with the government and nothing they do for us!!!
I live in CT and am living on my pension alone lost my job of 34 years when I was diagnosed with stage 3 breast cancer. went through a year of treatment then after about a year I started having awful headaches and passing out it spread to my brain I had brain surgery and now I have to learn to do everything again. I am on medcaid to young to go on medcare and I cant afford insurance on my own. I am 61 Will go on social security when I turn 62 which isn’t that far away. Sorry to ramble but my brain isn’t fully back to normal yet. Its been almost 2 months since surgery.
What about New York & New Jersey. I might have to move!!!
If they paid you, New York and New Jersey would still be a good places to move from. (Except Cape May)
New jersey will always suck. With taxes and everything bought and sold. Get rid of the gouvener that’s a start.
NJ is unconstitutional and discriminatory the way they tax certain pensions and not others.
Washington State; correct, no income tax…yet! The Gov. has been pushing for one for years. Where did you get they don’t tax SS benefits?? They tax the crap out of me, both Social Security and 457 (like IRA’s) disbursements. And, every city/county has a sales tax as high as 10.3%.
What about Kentucky
How many of these states have a high sales tax instead of taxing income? I know Washington does. No income tax – but state, counties and cities all charge sales tax.
how about delaware
This site is bullshit. I do not see the list of States and I am not putting up with this advertising nonsense to find out. I can do that on my own.
new jersey is known for high property taxes. I don’t think New York is any better.
The state of new jersey sucks big time they dont even increase veterans deduction
Hopefully, the State of Maine will stop taxing our State Pensions soon!!
But wherever you live, you’ll still pay federal income tax on it.