The personal income tax rates in the Garden State go from 1.4% to 10.75%. According to a WalletHub report, New Jersey levies the highest real-estate property tax of any U.S. state. However, for retirees, things are looking pretty good.
Social Security benefits, U.S. military pensions and military survivor’s benefits are exempt from income tax in New Jersey. More than that, life insurance payouts resulting from someone’s death are not taxable. If you live outside New Jersey, these 5 Smart Strategies to Avoid Taxes on Social Security Benefits might be useful.
Good news, Alabama seniors or future retirees! According to Alabama’s Department of Revenue, the Cotton State fully exempts Social Security benefits as well as other types of retirement income, such as:
- Retirement pays from the military
- U.S. Civil Service Retirement System benefits
- Dividends on life insurance for veterans
- Life insurance proceeds from a person’s death
In addition, Alabama ranks second in the top for the lowest property burden of any state in the United States. Find out if it has also made it onto our list of 10 Retirement Places Where Homes Cost Under $100K.
New Hampshire has a flat personal income tax rate of 5 percent, with income dividends and interest being the only ones taxable. Uncle Sam doesn’t touch the retirement income such as Social Security benefits, pensions or retirement accounts, which makes the Granite States one of the most retiree-friendly states in the country.
Compared to seniors in other states, retirees in New Hampshire can actually save some money in their golden years. However, New Hampshire has the third-highest real-estate property tax burden of any state, so, renting in retirement might be a better option. Here are 7 Reasons Renting Fits Perfectly With Your Retirement.