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California
According to the Federation of Tax Administrators, social security is not taxed in California at state level. However, Californians with a taxable income of up to $1 million do have to pay individual income tax rates between 1% and 12.3%. Those with a taxable income exceeding the $1 million threshold, are taxed an additional 1 percent, in which case the state’s maximum tax rate becomes 13.3%.
If you’re thinking of spending your golden years in the Golden State, here are 10 Ways To Make the Most Out of Life as a Retiree.
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Indiana
When it comes to the personal income tax, Indiana levies a 3.23 percent. The good news is there’s no tax for Social Security benefits. Future Indiana retirees will also be glad to find out that the Hosier State has been named the fifth-most affordable state for homebuyers, according to a 2020 SmartAsset analysis.
“The Hoosier State has the second-lowest average closing costs in the study, at $2,627. Indiana also is tied for the fifth-lowest median listing price per square foot, at $108. It has the seventh-lowest median listing price overall, at $186,000,” as explained in SmartAsset’s “The 10 Most Affordable States to Buy a Home“.
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Iowa
Iowa is among the moderate tax-friendly states. Residents in Iowa have to pay personal income tax rates ranging from 0.33% to 8.53%. However, Social Security benefits are exempt from the Hawkeye State’s income tax, with those receiving such benefits having a full state income tax protection. You might also like: 14 States Where Your Pension Won’t Get Taxed.
76 comments on “26 States That Do Not Tax Your Social Security Benefits”
It is double taxation!
Tennessee has no state income tax. Al Gore had nothing to do with it. In fact when Gore ran for President he lost his home box, home county, former congressional district and home state. Bush won in a landslide.
Why isn’t Illinois Jon the list. They do not tax any retirement income.
Why is it so hard to print an article on one page? Why must we have to follow a 12 page report on this page wait here comes the next page. N now I’m lost where did the article go?
BS! Texas DOES tax SS!
I work all my life and for health reasons I am still working and now because I am working full time S a. Addiction Counselor which I love helping people I have to pay on my social security. I work to make enough money to pay for everything to live without stress
That’s not true about Pennsylvania. I just filed my taxes and there’s a limit that you’re allowed to earn yearly before you have to pay tax on Social Security. I think that amount is $25,000.
Unless I missed it, New York State does not tax SS benefits either.
I live in Tennessee, there is no state Income tax here. However the good old Democrats have taken care of things and as much as 85% of my social security has be subject to Federal Income Tax every year since retiring.
Ronal Reagan DID NOT start taxing SS, nice try propagandists, he tightened enforcement of social security disability payments because it was being abused like most government programs, Bill Clinton taxed Social Security! It was Bill Clinton’s Tax Reform Act of 1993 that raised taxes on Social Security!
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