In Arkansas, the personal income tax rates vary from 2% to 6.6%. On the bright side, recipients of Social Security benefits are exempt from such taxes. More than that, Arkansas does not levy taxes on military pensions and life insurance payouts (resulting from a death). Seniors can also benefit from a $6,000 deduction for other types of retirement income like from pensions or IRAs.
The Magnolia State’s personal income tax rates range from 3% to 5%. Retirees will be glad to know that Mississippi exempts all forms of retirement income from taxes, Social Security benefits included. According to state authorities, “generally, retirement income, pensions and annuities are not subject to Mississippi Income tax if the recipient has met the retirement plan requirements.”
Michigan has a flat personal income tax rate of 4.25 percent. When it comes to retirement income such as Social Security benefits or U.S. military pensions, their recipients can breathe easily. That’s because such type of income is exempt from state income taxes.
In addition, Michigan National Guard pensions and rollovers excluded from the adjusted gross income (AGI) on federal tax returns are not subject to state taxes. More good news for retirees comes in the form property tax deferral program for seniors meeting the eligibility criteria.
Speaking of property, if you’re planning on selling your house and moving to Michigan, check out these 14 Expert-Approved Tips to Get the Best Price for Your Property.