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New Jersey
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.
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Alabama
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.
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New Hampshire
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.
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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