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.
14 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!!!
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)
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
KY TAXED TO DEATH HAVE CITY AND COUNTY INCOME TAXES. STATE INCOME SALES TAXES
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