2 weeks ago - 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.

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.

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.

5 days ago - ... 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 ...

September 20, 2023 - NYS Pension Taxation Requirements By State Will Your NYS Pension be Taxed If You Move to Another State? If you are considering moving to another state, you should be mindful of the fact that states often enact, amend, and repeal their tax laws; please contact their Revenue Agency yourself to verify that the information is…

2 weeks ago - For more information about retiring in Mississippi, check out Kiplinger's report, The Most Tax-Friendly State for Retirement. ... Nevada won't tax your pension income because it doesn't have an income tax. With no income tax, there's also no tax on 401(k) or IRA distributions.

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.

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.

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 ...

Tax information for seniors and retirees, including typical sources of income in retirement and special tax rules.

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.

June 24, 2025 - To help you decide where you might live in retirement, we’ve crunched the numbers on each state if you’re making traditional IRA withdrawals of $100,000 annually in retirement. We examined the combined current effective federal and state taxes imposed on withdrawals from traditional IRAs, factoring in exemptions, deductions, and credits on those withdrawals. We do not consider state standard deductions and exemptions; instead, we use the federal standard deductions.

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....

September 15, 2025 - Some states tax all or some retirement income, but others don’t tax retirement income at all. To help get you started on your search, here are 23 destinations with factors important to retirees: attractive lifestyle, safety, quality healthcare and a cost of living below the national average. Many retirees yearn for warmer weather, a slower pace and being near the water.

June 16, 2025 - Here are 13 states that don't currently tax retirement income. No one in Alaska pays state taxes because it doesn't levy an income tax. That means that you won't face a state tax bill for Social Security benefits, pension income, or 401(k) or IRA distributions.

November 1, 2025 - ... Nine states—Alaska, Florida, Nevada, South Dakota, Tennessee, Texas, Washington, and Wyoming—have no state income tax. New Hampshire joined the list in 2025 when it repealed its tax on dividend and interest income.

October 20, 2025 - Income Tax on Taxable Income: Low of 2% (on up to $500 for single filers and $1,000 for joint filers) and a high of 5% (on more than $3,000 for single filers and $6,000 for joint filers) ... Alaska doesn't have a personal income tax, meaning ...

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.