Exploring States That Do Not Tax Retirement Income

Friday, 26 July 2024, 12:30

When planning for retirement, it is crucial to consider how different states tax retirement income. While some states impose income taxes on IRA and 401(k) distributions, there are 11 states that do not tax retirement income at all. This can significantly impact your financial strategy and savings as you transition into retirement. Understanding these tax-friendly states can help you make informed decisions about where to retire and optimize your income.
Yahoo Finance
Exploring States That Do Not Tax Retirement Income

Overview of Retirement Income Taxation

States vary widely in their taxation of retirement income, making location a key factor in retirement planning.

States with No Retirement Income Tax

  • Alaska - No state income tax.
  • Florida - No state income tax.
  • Nevada - No state income tax.
  • New Hampshire - No tax on retirement income.
  • South Dakota - No state income tax.
  • Texas - No state income tax.
  • Washington - No state income tax.
  • Wyoming - No state income tax.
  • Tennessee - No tax on retirement income.
  • Mississippi - No tax on retirement income.

Conclusion

Choosing a state that doesn’t tax retirement income can lead to significant financial advantages in your retirement years. It’s essential to weigh these benefits when determining where to live after retirement.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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