There are also three other states with income taxes that give retirees a well-deserved break on pensions and retirement plan distributions. For instance, Illinois has a 4.95 percent flat income tax, and it won’t tax distributions from the majority of pensions and 401(k) plans, but also IRAs.
Also, Mississippi’s maximum state tax is 5%, and it doesn’t tax any retirement distribution, while Pennsylvania has a 3.07 percent flat tax, and doesn’t tax retirement plans at all.
When it comes to other states, it seems that the next best thing is carving out a couple of exemptions for retirement income. For instance, besides those nine states that don’t have any income tax, it seems that no less than 21 states don’t apply any kind of tax on military pay.
These states are Alabama, Arkansas, Connecticut, Hawaii (who would’ve thought?), Illinois, Iowa, Kansas, Louisiana, Maine, Massachusetts, Michigan, Minnesota (everyone expected this from Minnesota!), Mississippi, Missouri, New Jersey, and New York (as expensive as this state is, the least they could do was to exempt military tax), North Dakota, Ohio, Pennsylvania, but also West Virginia, and Wisconsin.
What are the best states for retirement?
How many people live too be 100 and if you do you’re too dam old.
I never saw the 7 states listed anywhere in this article rife with ads & other distractions!
No it is that the politicians and lobbyist make so much income they think all the lower level job people include retiree have the same amount of disposable income so they take care of their life style and the hell with those who pay their salaries. So get rid of the many lobbyist and their pushing agenda paying politicians and the politicians might just working for the tax payer again. know what a dollar will by when you only have a dollar.
Florida also has no state income tax
Democrats love to TAX productive Americans so they can BUY the votes of unproductive people with handouts. The Hasidic n NY have 8 and more children and SCAM every government program by not being married by the state (only married by their rabbi) so they can claim to be ‘unwed mothers’. The whore politicians say nothing because they want their ‘block vote’.
You have an omission: Rhode Island DOES NOT TAX Miltary pensions.
Where are your 7 states ?
New Mexico exempts $35K of military retirement benefits from state income tax. Also, any portion of Social Security benefits taxed by the federal government, is exempt from state income tax. If you live to be 100years old, you are also exempt from all state income taxes!
Three states with extremely cold temperatures and ice to slip and fall on.
Want to shovel snow at 70? Want to slip on ice at that age or older?
Nope.