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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 thoughts on “26 States That Do Not Tax Your Social Security Benefits”
I think it’s double taxation. First we pay when we make the money, then we pay when we receive what we have paid into, and already been taxed on. I really don’t understand this process. The checks are so small anyway, but take out the God awful taxes, and you could almost make it on what you get. Don’t understand.
Oklahoma also does not tax Social Security. The taxable portion of Social Security on the federal return is taken as a deduction in arriving at Oklahoma taxable income.
Used to think we lived in the best country in the world. Its sad to see so few impose their will on so many. At one time I could proclaim “this really is a wonderful place to live and bring up a family” without being canceled.
Its like we can never do enough, as though we have not made significant gains in the past several decades.
I fell like the abused child or spouse who keeps getting kicked no matter how hard they try.
Its very difficult staying positive and moving forward with a positive attitude when you are considered enemy number 1 by 50% of the population. All we want is to be left alone to live our lives the way we see fit.
Not looking for gratitude or validation just peace.
There are many more states than listed above that do not tax Social Security benefits as income. In fact, there are only 13 states that do consider Social Security benefits as taxable income.
people you have to understand and that is SSI IS MONEY GIVEN TO YOU BUT IT IS NOT FUNDED BY OUR MONEY AND SSDI OR RETIREMENT ARE WHAT IS PUT IN BY US AND TAXED WHEN PUT IN AND SO IT IS CONSTANTLY BEING FUNDED.THE REASON YOU SEE AN OFFSET IN PAY IS WHEN THEY DEDUCT FUNDS IT IS CALLED A WINDFALL,MEANING THE SUPPLEMENT THEY PAY YOU IS TAKEN OUT OF YOUR CHECK SO THEY CAN PAYBACK THE UNFUNDED ACCOUNT WITH SSDI OR RETIREMENT FUNDS.COMMON SENSE IS YOU NEED A CONSTANT FLOW OF MONEY GOING THROUGH THE SYSTEM TO KEEP IT RUNNING AND NOT COMPLETELY IMPLODE AND CRASH.
someone has to be double taxed in order to support the deplorables who refuse to work. The few working people in this country are taxed to death and it is not going to change.
You may have awakened some states like New Jersey and they will probably started developing a new tax bill already!
dOES kENTUCKY TAX SOCIAL SECURITY BENEFITS?
I live in Alabama which I hope is one of the states that doesn’t tax SS income. After bills my increase was
$12. per month. What about the 5.9% figure I hear being talked about for this year. Is that going to be a
real number or not. We live paycheck to paycheck so I hope it is for real. Can you send me a list of the 26
states that don’t tax SS?
Elwin
The 26 states are:
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I clicked on everything and all I get are ads or the next article or people comments turning this into a political BS.
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