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 comments on “14 States Where Your Pension Won’t Get Taxed”
But wherever you live, you’ll still pay federal income tax on it.
Hopefully, the State of Maine will stop taxing our State Pensions soon!!
The state of new jersey sucks big time they dont even increase veterans deduction
new jersey is known for high property taxes. I don’t think New York is any better.
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.
how about delaware
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.
What about Kentucky
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%.
NJ is unconstitutional and discriminatory the way they tax certain pensions and not others.
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