February 2, 2025 - Texas homestead property tax exemption is $200,000 for homeowners 65 and older. However, the Lone Star State imposes a sales tax, which can be as high as 8.2% in some areas. See also: Ten Cheapest Places to Live in Texas. ... Washington income tax on retirement income, such as Social Security, pension income, 401(k), or IRA distributions. This is because Washington does not have a personal income tax.

October 15, 2025 - On the bright side, Alaska residents who are 65 or older can claim a property tax exemption for the first $150,000 of their home’s value, and local governments can extend the exemption beyond that amount. If you want to stretch your retirement savings, Florida is a good place to spend your golden years, because the overall state tax burden is fairly low. There’s no state income tax — something that’s well-known by people who move here from colder climates for retirement.

There are currently eight states in which individual income is not subject to tax: Alaska, Florida, Nevada, New Hampshire, South Dakota, Texas, Washington, and Wyoming.1 · State taxation of retirement income differs significantly across the U.S. Some states completely exclude retirement earnings ...

February 7, 2025 - He currently oversees the investment operation for a $4 billion super-regional insurance carrier. Read More| Updated: February 7, 2025 · State governments typically impose state taxes on retirement income as a source of revenue to fund various state programs. However, not all states have a state income tax, and some states may tax some, all or none of retirement income.

In short, the taxes seniors pay during retirement can vary greatly depending on where they live. In a state like Wyoming, which has no income tax along with low sales and property taxes, retirees can expect to have a relatively small tax liability.

June 23, 2025 - This means they won't tax your retirement income, including pension income or distributions from retirement accounts like 401(k)s and IRAs. ... New Hampshire (Effective 2025, New Hampshire no longer taxes interest and dividends, making it a ...

4 weeks ago - Forty-one states don't tax Social Security income. Thirty-seven states don’t tax most military retirement pay. Fifteen states exempt pension income from state taxes. Nine states have no income tax at all.

July 1, 2025 - States that DO tax Social Security: Colorado, Connecticut, Kansas, Minnesota, Missouri, Montana, Nebraska, New Mexico, North Dakota, Rhode Island, Utah, Vermont, and West Virginia. However, most provide exemptions for lower-income retirees.

... Generally, states without any income taxes may seem like the first choice to reduce your tax burden. These states are: Alaska, Florida, Nevada, New Hampshire, South Dakota, Tennessee, Texas, Washington, and Wyoming - note that New Hampshire taxes interest and dividends when over a certain ...

August 19, 2025 - The following 15 states do not tax pension income that retirees receive: ... Similarly, Illinois, Pennsylvania, and Mississippi don’t tax IRA or 401k plans. Fortunately, most states in the U.S. don’t tax Social Security.

1 week ago - Taxes shouldn't be the only consideration for retirees, either. Two of the 13 states that don't tax retirement income – Alaska and Washington – rank No.

Delaware is another one of the ... is also one of only five states that do not have a sales tax, along with Alaska, Montana, New Hampshire, and Oregon....

Pennsylvania has a 3.07% flat tax and doesn't tax retirement plans or Social Security benefits. Iowa has a state tax rate of 3.8%. It doesn't tax retirement plans or Social Security payouts for people 55 and older.

March 12, 2025 - Eight states do not levy any income tax on retirement income, providing automatic tax relief to retirees. These states include Texas, Wyoming, Washington, and Alaska, among others.

Delaware offers partial exemptions on retirement income: individuals 60 and older can exclude up to $12,500 per year (Delaware.gov). Alabama does not tax traditional pension income or Social Security, though IRA and 401(k) income may be partially taxed depending on distribution type (Alabama Department of Revenue). Acts communities in these states provide not just a fulfilling lifestyle, but a practical financial choice for those seeking to reduce tax burdens during retirement.

September 15, 2025 - As of 2023, Iowa residents over the age of 55 are no longer taxed on their retirement income thanks to a 2022 law. Iowa now has a flat rate of 3.8 percent on taxable income after a new law was passed in May 2024. Mississippi state income tax rates are 0 percent on the first $10,000 of taxable income and 4.4 percent on income above that level for the 2025 tax year, but retirement income is not taxed as long as you’ve met the plan requirements.

2 weeks ago - Property tax relief programs—including homestead exemptions and deferred property tax payments—help retirees manage housing-related tax liability. ... South Carolina offers targeted tax breaks for older residents.

4 weeks ago - Forty-one states don't tax Social Security income. Thirty-seven states don’t tax most military retirement pay. Fifteen states exempt pension income from state taxes. Nine states have no income tax at all.

August 4, 2022 - Some states that don’t appear on this list of those that don’t tax retirement income at all are still relatively generous when it comes to letting retirees off the tax hook. For instance, Georgia does not tax Social Security retirement benefits and also provides a deduction of anywhere from $35,000 to $65,000 per person (depending on your age) on all other types of retirement income.