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.
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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